Fleet Management

Situation
One of Latvia's largest company's manages a car fleet containing more than 1,500 vehicles. The company's transport section employs 55 employees throughout Latvia. In order to increase its competitiveness in the telecommunications market, Lattelekom has taken a strategic decision to concentrate on its core business. The tender for the provision of FLEET MANAGEMENT services was won by Autonams (now Transporent).

Solution
Transporent recruits 17 leading specialists from the Lattelekom Transport department and supplies Lattelekom with a complete range of FLEET MANAGEMENT services, including the following:

• car purchasing and financing management (long-term vehicle lease)
• insurance organisation and management
• road tax and technical inspection administration
• maintenance and repair management
• tyre service
• fuel card management
• 24hr roadside assistance
• replacement vehicles
• documentation and data maintenance
• taxi card service
• car parking administration
• short-term car rental
• customer service and free phone
• used car sales

The Lattelekom fleet is being gradually, over a period of several years, replaced by cars leased by Transporent. Transporent also provides data accounting and fuel card administration for Lattelekom special machinery.

Result
The number of cars will be reduced by more than 500 units without any increase in average costs. There are 10 times fewer employees in the Lattelekom Transport department and fleet costs have been reduced by 44%. Average costs have not changed even though petrol, insurance, spare part and cars itself costs have risen by as much as 30% in last years.

"The recruitment of fleet management services allows us to utilise our resources in this area more effectively and flexibly, as well as to optimise our management functions. Today, all we do with our cars is driving them, whilst the responsibility for dealing with all problems related to the fleet is undertaken by Transporent. Similar changes %96 separating or selling off business functions that are not integral to the company's core business have already been carried out by Lattelekom in regard to its immovable property and training centre, at the same time allowing the company to open up and direct business processes to external markets that are closely linked to the company's core business. Our experience in this regard has also allowed the company to successfully commence the sale of its support process (for example, bookkeeping and information technology services) to other companies."

Jānis Bērziņš,
SIA "Lattelekom"
Director, Business Services Division