Since July 2005, office stationery and supplies company Lyreco has been adopting a policy of full service contract hire for all new commercial vehicles joining its nearly 400-strong fleet.
During this time Fraikin has grown its share of the Lyreco fleet to more than 90 per cent, with vehicles supplied on a mixture of four and five year full service contract hire agreements, replacing a previous procurement policy which involved a combination of operating leases and locally sourced maintenance.
Spread across its 24 regional distribution centres, plus its main distribution warehouse in Telford, the fleet is sourced predominantly from Mercedes-Benz and Vauxhall, supported by a selection of Daf, Iveco and Ford models. This includes recent orders for more than 50 replacement and additional vehicles, which will enter service throughout 2009, based on the latest Euro 5 Sprinter van with Eco-Start technology.
In operation five days a week, the Lyreco fleet makes in excess of 15,000 deliveries each day, backed up with an industry-leading delivery guarantee of ‘yours tomorrow or yours free’, across an extensive range of over 6,000 products.
Supporting this delivery guarantee is a substitute vehicle policy, built into each contract hire agreement with Fraikin across the entire Lyreco van fleet. This means that in the event of a vehicle suffering unexpected downtime, Fraikin will provide a substitute vehicle to ensure Lyreco can continue its deliveries to customers without delay.
Tom Vallings, Logistics Supervisor at Lyreco explains: “The key reasons for partnering with Fraikin were the levels of service back-up they could offer our business, coupled with their expertise in the truck sector.
“When it comes to contract hire, vans are usually lumped in with either cars or trucks, and since more than 60 per cent of our vans are fitted with tachographs and plated between 4.5 and 5.5 tonnes, we favoured a provider with experience at the heavier end of the market.
“In terms of flexibility, contract hire has really proven itself to suit our business well, and allows us to fix our transport costs for several years at a time, without worrying about residual prices, part exchange rates or re-marketing the vehicle at the end of the contract. Fraikin’s ability to manage the maintenance and fleet administration on top of providing the funding is proving a great benefit to our business,” he concludes.
All vehicles supplied to Lyreco are maintained centrally via Fraikin’s dedicated Customer Service Centre (CSC), which is located at its head office in Coventry. Operating 24 hours a day, the CSC co-ordinates all vehicle maintenance and servicing via an extensive network of both Fraikin branches and approved third-party repair agents. This dual policy ensures Lyreco benefit from the highest standards of maintenance, managed centrally, but using high quality servicing facilities located within several miles of each of its depots.
Fraikin also extends a fleet management facility to Lyreco, to support the remaining vehicles in its fleet which are still owned outright or provided on lease through a previous supplier. This has allowed Lyreco to take full advantage of Fraikin’s fleet management skills, without waiting for these older contracts to lapse.
Lyreco’s contract hire package includes:
• Full servicing, maintenance and repair during evenings and weekends
• Collection and delivery – routine services
• Road fund licensing
• 24/7 emergency roadside assistance
• Relief vehicle cover
• KPI & management reports
• Account management
• Access to technical expertise and specialist advice