Technology

Full maintenance rental fleet solution for Clover

We are proud to have recently been awarded the tender to manage Clover’s fleet of 738 vehicles.

The Context

We assisted Clover with a superior end-to-end fleet management solution that has optimised and improved its distribution value chain, while also delivering savings of up to R1 million per month.

The Challenge

After 20 years of outsourcing its fleet management to a third party, Clover went to tender to seek a new vendor to manage their fleet of 738 vehicles (73 truck tractors, 81 trailers and 584 rigid trucks).
At the time that Clover issued this tender, the company faced numerous risks pertaining to its fleet. These included concerns over:
- The age of the fleet
- The ability to acquire and finance new vehicles
- The level and quality of maintenance of vehicles
- High operating costs and a lack of transparency into maintenance cost spend.
In addition, Clover had recently revised its distribution strategy, resulting in changes to the transportation of certain products and product volumes at various depots throughout the country.

Key handover to customer in front of trucks- 247615

The Solution

Standard Bank conducted an extensive analysis of Clover’s requirements to understand whether the current assets on the book were still relevant to the company in relation to its new distribution strategy and changes at central depots and satellite sites.
This exercise enabled Standard Bank to right-size Clover’s fleet, while assessing which assets were still in good shape and which vehicles needed replacing.
Standard Bank sourced and financed new vehicles from vetted OEMs and negotiated discounts on behalf of Clover and provided an end-to-end full maintenance rental. solution whereby Standard Bank assumes all responsibility for servicing and maintaining vehicles via its network of accredited OEMs and vendors.
Further optimisation of the fleet involved the allocation of fit-for-purpose vehicles to the right depots to meet operational requirements, enhanced utilisation of trucks, improved route planning and effective ongoing maintenance to reduce downtime.
Access to Standard Bank’s secure online BI Platform provides Clover with the ability to view maintenance expenses at a VIN-number level, forecast expenses, and access in-depth reporting for transparent billing and improved decision-making.

The Outcome

Since awarding Standard Bank with the contract to manage its fleet in 2023, Clover has enjoyed the following benefits:

Reduced business exposure and risk due to its full maintenance rental contract with Standard Bank.
Ageing vehicles have been replaced with new assets.
Matched geographic footprints nationwide ensure services can be delivered across the country, including remote areas.
Reduced downtime on account of reliable maintenance and quality workmanship by accredited OEMs and suppliers.
Improved governance, transparency on costs and billing, and the ability to project monthly maintenance costs with Standard Bank’s BI Platform.
Savings of approximately R1 million per month since the initiation of this contract, as an outcome of favourable interest rates, negotiated discounts with reputable OEMs, and overall fleet optimisation.

Interested in Learning more?

•   Click here to watch our Clover case study video
•   Browse our Fleet Management solutions online
•   Reach out to your Relationship Manager or email us at [email protected] for more information.

Tony Roderigues

Clover: General Manager for Distribution

“When a company like Clover spends R20 million a month on its fleet from a rental and maintenance perspective, one is always a bit sceptical about what you’re spending the money on, especially because you have a fleet that’s maintained by a third party. “What Standard Bank has done for us is open their books to us, so we have an ‘open book costing’ where we see how much we pay as a fixed component for the vehicle and how much we pay for a variable component on maintenance. With their daily and monthly reports, we physically see what we’re spending on the maintenance of our vehicles from an engine to a gearbox, to a refrigerator. So, we have full transparency, and that has brought us a lot of comfort and a true partnership with Standard Bank.”