London boroughs spend in excess of £100m a year on acquiring and maintaining a combined commercial fleet of 6,000 vehicles. The London Commercial Fleet Project is a major opportunity to deliver significant cashable savings and improve the way fleet is acquired. Results from elsewhere in the UK and central government show that a smarter approach to acquisition delivers major efficiency gains for those organisations fully engaging in the process.
The report, Acquisition and Management of Commercial Vehicles – A New Approach for London published in May 2009 identified that cashable savings of around 10% could be made from a collaborative approach with London authorities agreeing core specifications for vehicle ranges, brigading their future requirements and sharing contracts. The Capital Ambition Efficiency Board approved funding of £250k and the project was supported by the Office of Government Commerce (OGC) as a national lead project.
The project launched with a consultative workshop in July 2009 attended by representatives from over 20 London authorities. A Steering Group was set up, chaired by Will Tuckley (CEO, LB Bexley) and including representatives from the Society of London Treasurers, OGC, FireBuy and the Association of London Transport Officers.
The overall goal of the project is to help London local authorities realise cashable savings to help them with the challenging financial climate.
- Report providing details of all London local authority workshops (including those outsourced) – covering utilisation, capacity, technical specifications and people employed.
- Report evaluating current and planned framework contracts covering commercial vehicles.
- Marketing and communications strategy.
- Toolkit assessing benefits and evaluation of procurement methods (outright purchase, hire, leasing, and outsourcing) with worked examples.
- New contract(s) covering the complete range of commercial vehicles, including those using ‘green technologies’ open to all London local authorities.
- Rolling programme of e-auctions.
- Report publicising the deployment and business case for adopting new technologies in fleet management.
- Knowledge Centre providing access on the results of work carried out or in-hand on environmental initiatives.
- Savings measurement methodology.
- A set of core vehicle specifications.
Project id: CA60
Project Manager: Phil Keymer