Fuelling the discussion: A view on how to manage fuel cost. Luc Dendievel, Director Category Team Fleet EMEA
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1 Fuelling the discussion: A view on how to manage fuel cost Luc Dendievel, Director Category Team Fleet EMEA 1
2 Agenda Introduction Benefits of tackling fuel cost How we re managing it Summary 2
3 Introduction Background on our fleet & the impact of fuel 3
4 Our EMEA car fleet in a nutshell 14,000 vehicles across EMEA 34 countries Fleet management mainly local About $250m annual spend 135 g/km avg. CO 2 emission per Q2/ brands in the fleet at end of operating groups Data mostly held locally Top 5 countries with > 60% of spend CO 2 footprint at 64,000 tons per year 7 preferred brands since operating companies About 140 data sources 4
5 Our car fleet consumes of lot of fuel Approximately 30,000,000 litres of fuel per year Equivalent to 1,000 full fuel tankers Lined up for 25km, taking 30 minutes to pass The image may be in either the right column or the left. Its width is 4.38 and the recommended height is 5. The height of the image may be less than 5 if it s aligned at to the top of the content box.
6 Which costs an ever larger proportion of TCO Equivalent to 250 bags each filled with $1m That s nearly 1 bag per working day Or 3 Gareth Bale s! 6
7 And has a big impact on the environment An annual footprint of 64,000 tons of CO₂ 1,000,000 trees to compensate Equivalent to an area of 11,000 football pitches Over a period of 12 years 7
8 Fuel management is therefore key Critical to mitigating financial risks through soaring fuel cost Fuel consumption versus fuel cost over the years Fuel consumption per year (million litres) Fuel cost per year ( million) /L /L /L
9 Benefits of tackling fuel cost Enabling both the obvious & hidden benefits 9
10 Focus on four key enablers to drive benefits Enablers Benefits Technology Purchasing Behaviour Mileage reduction 10
11 How we re managing it Initiatives & results 11
12 Setting tough but achievable CO₂ targets Start of broad implementation in 2010 By 2013 CO₂ reduced by 20% 3 scenarios developed running until end of 2017 Reviewed in conjunction with leasing suppliers including GE Capital Targeting 99 g/km by end 2017 The image may be in either the right column or the left. Its width is 4.38 and the recommended height is 5. The height of the image may be less than 5 if it s aligned at to the top of the content box. Purchasing Technology Mileage reduction Behaviour
13 Adopting & rolling out Eco Driving programmes 3 pilots conducted Fuel consumption (and cost) reduced by 7-8% on average Financial benefit of 3-4m per year* Technology Purchasing Behaviour Mileage reduction * Basis is a fuel cost forecast for 2017 with the CO2 reduction scenario GREENER. The one-time cost for running the Eco Driving training is estimated at 300,000 provided a 100% participation rate.
14 Mileage reduction Look at every way to reduce mileage driven Review territory management Introduce GPS The image may be in either the right column or the left. Its width is 4.38 and the recommended height is 5. The height of the image may be less than 5 if it s aligned at to the top of the content box. Technology Purchasing Behaviour Mileage reduction
15 Purchasing Consolidate procurement Negotiate discounts Hedging Technology Purchasing Behaviour Mileage reduction
16 Summary Key imperatives & takeaways 16
17 Focus on the key enablers to managing fuel Leverage technology and innovations Impact your drivers behaviour Set targets around mileage reduction Use your purchasing power with fuel suppliers The image may be in either the right column or the left. Technology Its width is 4.38 and the recommended height is 5. The height of the image may be Purchasing less than 5 if it s aligned at to the top of the content box. Mileage reduction Behaviour 17
18 There is no time like the present Delay is a lost opportunity Extra financial cost of 1.6m per year Over 20,000 trees needed to compensate for the extra damage to our environment alone The image may be in either the right column or the left. Its width is 4.38 and the recommended height is 5. The height of the image may be less than 5 if it s aligned at to the top of the content box. 18
19 Thank You 19
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