British American Tobacco Case Study
British American Tobacco is the world's second largest quoted tobacco group by global market share, with brands sold in 180 markets. With more than 300 brands in their portfolio, they make the cigarette chosen by one in seven of the world's one billion adult smokers. They hold robust market positions in each of their regions and have leadership in more than 50 markets.
When British American Tobacco went out to tender, they were looking for something very specific for their 400 strong vehicle fleet.
Firstly, they needed to outsource the day-to-day running in a way that had not been effectively achieved before.
"It is essential for the supplier to get the day job right and remove the daily glitches and troubles that can waste so much of everyone's time," explained Viv Windrum, BAT's Fleet Services Manager.
Secondly, they wanted to free up BAT's time to look strategically at the fleet.
"For the first time ever we were genuinely raising the bar in respect of what we expected from a fleet supplier, and we weren't totally convinced that there was a company out there who could perfectly match our needs.
In summary, the new supplier would not just handle the day-to-day operations; they would become a genuine strategic partner helping to identify ways of increasing BAT's profitability.
As this was a major review we started with a list of 20 companies," explained Viv.
The 20 companies were carefully selected from the major players in the fleet industry right through to the smaller suppliers. For BAT, it was important to establish a true cross section of capabilities in order to make their judgement.
Leasedrive Velo had been recommended to BAT as a company they should include in their tender list, which intrigued Viv because she knew very little about them at the time.
"We added Leasedrive Velo to our tendering list and it was useful to include a medium sized independent company because it had struck us that there were not many of them around," commented Viv.
"When the meetings started, they caught our eye immediately for a number of reasons. Their client base particularly impressed us - not only because they dealt with so many FTSE 100 companies, but because these high profile brands had been with them a long time.
We also noticed how very calm, thorough and very well organised they were. It was apparent that many of the companies we met hadn't thought through our requirements properly and were trying to talk to us about things we did not need.
Leasedrive Velo, however, had digested our tender document in detail and came back with genuine questions and clarifications around our requirements.
They began working with us from the outset to make sure their proposition not only met, but also surpassed, our expectations."
The 20 companies were shortlisted to 5, and then to 2, and Leasedrive Velo was finally appointed.
"At the beginning of any new relationship you look for signs to indicate that you have made the right decision," said Viv. "After all, your reputation in the business is at risk if you get it wrong.
Leasedrive Velo put my mind at rest instantly. They had a clear implementation plan, which they stuck to. My account manager was experienced, very knowledgeable and an operational specialist - not just a salesman in disguise.
Leasedrive Velo communicated with us openly and frequently from day one so that we didn't have any nasty surprises; and this set the tone for what has become an outstanding relationship.
The speed at which they got the basics ticking over smoothly also impressed me. It was as if someone had taken a huge burden off my shoulders. We quickly got into a pattern of regular reviews that were more strategic than operational," added Viv.
Now two years on the partnership between Leasedrive Velo and BAT is continuing to grow.
Starting as a maintenance management contract, BAT quickly received the reassurance they needed which led them to extend this to accident management, pay on use acquisition and disposal, and recently Leasedrive Velo's Safety Net service, which helps fleet operators discharge their duty of care, and meet health and safety requirements.
Leasedrive Velo also provides BAT with on-line access to a tailored extranet site.
"Everything happens as I would expect it to," summed up Viv. "And whilst that might sound a strange thing to say, anyone involved in running a fleet will tell you that is often not the case.
Strategically, they are better than any other company we have had experience of. How they keep coming back with innovations and ideas that will genuinely add value to BAT as an organisation never ceases to impress."