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Ogilvie Fleet delivers affordable outsourced van solution to housing group

Ogilvie Fleet delivers affordable outsourced van solution to housing group

The ability to make fleet operating cost savings and the ‘simplicity’ of monthly fixed costs contributed to Grand Union Housing Group (GUHG) switching to a fully outsourced contract hire solution with Ogilvie Fleet for its 45 light commercial vehicles.

Historically, GUHG, a provider and developer of affordable housing and related services in Bedfordshire, Buckinghamshire and Northamptonshire, managing almost 12,000 properties, has purchased its fleet vehicles.

However, Richard Pearce, the organisation’s health, safety and business services manager, undertook a root and branch funding review to ascertain the most cost effective method of acquisition for its vehicles.

Ogilvie Fleet, one of the UK’s fastest growing vehicle leasing and fleet management companies with more than 16,000 company cars and vans on its books, was among the contract hire providers approached to provide a detailed whole life cost analysis of the fleet.

Utilising the Deloitte modelling tool, Ogilvie Fleet identified that contract hire was the most cost-effective funding mechanism for the procuring of vans by GUHG.

Ogilvie Fleet subsequently worked with Mr Pearce and van users’ representing the various operatives’ skill sets within GUHG, including electricians, multi-trade operatives and ground maintenance staff, to select vehicle make and models and specify the vans to ensure they were fit-for-purpose.

Vauxhall was selected as the supplier due to its ability to meet cost, vehicle specification and van delivery times as well as its capability to provide service, maintenance and repair though its local franchise network. Additionally, Ogilvie Fleet involved preferred vehicle conversion specialist Bott to equip the vans.

The all-diesel van fleet, which operates over a five-year/75,000-mile replacement cycle, is largely comprised of Vivaro panel vans with tippers based on the Movano chassis cab.

Mr Pearce, who is in charge of the fleet, said: “Value-for-money is clearly vital, but the key reason for opting for contract hire and moving away from outright purchase was that it delivered budgetary simplicity due to monthly fixed costs. We previously found that service, maintenance and repair costs could escalate rapidly in the final year or two of a vehicle’s operating life and that could impact on budget certainty."

The Vauxhall vans are replacing Ford vehicles and Mr Pearce said he was pleased that the marque has recently announced that the new generation Vivaro will continue to be built in Luton.

He said: “The new Vivaro will be built in Luton from 2019 and as an organisation operating in Bedfordshire and surrounding counties and employing local people, we are delighted to be supporting another local employer by operating Vauxhall vans.”

The full suite of in-life services provided by Ogilvie Fleet to GUHG also includes: Accident management, daily rental and management of the legacy vehicle fleet and assistance with its disposal.

Furthermore, the organisation will benefit from being able to access the supplier’s industry-leading and multi-award-winning MiFleet Showroom online reporting tool.

In addition a new corporate identity for GUHG is also being rolled out across the fleet beginning with the delivery of the first 12 vehicles, which is already underway.

Jo Clark, director of sales at Ogilvie Fleet, said: “Our detailed analysis of GUHG’s van fleet requirements from acquisition costs through to operational requirements has provided the organisation with a fleet of cost-effective, modern, smart and efficiently converted vehicles along with a 24-hour support service ensuring vehicle mobility and driver safety.”