By Nigel Frost, senior strategic account manager, Northgate

There is a long-held belief among businesses that vehicle rental is a short-term arrangement that provides a tempo-rary solution to a logistical conundrum.

While this was perhaps once the case, the growing truth is that the short-term, fixed model is becoming outdated,

as the world of business becomes more connected and a 24/7 philos-ophy is observed across all sectors.

Businesses large and small are now turning to flexible solutions across all aspects of their organisations, and longer-term arrange-ments that allow for forward planning, while still offering room to adapt, approach. Put simply, modern businesses are seeking to boost fleet mobility while reducing the headache associated with contract hire or purchase – easier than it sounds, despite misconceptions.

Differing approachesNorthgate realises that every business is different regardless of the sector it operates in and, as such, different approaches are required when it comes to fleet acquisition.

Some fleet managers understandably have reservations about long-term commitment to rental, and initially may look at only imple-menting this approach in a small proportion of the fleet. Often the

results of this will speak for themselves, and a business which has rented only a small proportion of its fleet will begin to consider rolling out a long-term model across the entire fleet.

The conundrum is less common among larger fleets, which are increasingly becoming aware of the value of long-term rental and the freedom and flexibility it provides. A commitment to a vehicle supplier should never result in hands being tied.

Case study: EnserveOne of Northgate’s biggest clients is Enserve, a leading provider of support services to the utility sector, which has its own client contracts that range in length and requirements.

Generally, these contracts last between three and four years, but the nature of the business means that terms can often alter part way through the contract, requiring a change to the type and number of vehicles it needs to carry out its duties. Similarly, contracts completed ahead of schedule can result in a surplus of vehicles if they have been acquired through contract hire or lease agreements, leading to termination penalties or new lease costs.

Seeking a solution to this problem, Enserve turned to Northgate, with its flexible agreement enabling the utilities provider to avoid such costs. Not only does Northgate allow vehicles to be handed back without penalty, but no upfront deposit is required prior to taking new

vans, while the size of the fleet can be increased whenever neces-sary. At present, 450 vehicles in Enserve’s fleet of 1,000 are provided through Northgate long-term flexible rental, which has brought about a significant reduction in costs across several areas.

The all-inclusive package provided to Enserve includes vehicle trackers, speed limiters that minimise fuel wastage and unnecessary wear, and a unique management information (MI) portal that have combined to save the utilities provider more than £30,000 per year.

All vehicles come with an inclusive service, maintenance and repair (SMR) package, as well as proactive scheduling of SMR events and replacement vehicles, meaning disruption to Enserve’s business activities is minimal and the companany can maximise opportunities while meeting customer needs.

Paul Brown, head of group fleet at Enserve, explains that some new contracts require his company to increase its fleet by 100 vehicles or more inside a one-month period, necessitating effective and immediate logistical support to get the vans on the road as soon as possible.

“When we looked into the service from Northgate, the benefits of rental as a viable long-term solution were clear,” says Brown. “We discovered they could offer the same vehicles at the same price and with the same specialised equipment as contract hire and leasing suppliers, but with the added benefit of flexibility.”

Complimentary technologyThanks to Northgate’s complimentary MI portal, which would have cost Enserve £10,000 a year to outsource, the company has visibility over its fleet at all times, with users able to view details of their vehi-cles, ensure they are compliant and up-to-date with MOTs and services, and also access and download reports.

As with any business, it is impossible for products, work or services to be provided if the experts required to do it are not in the right place at the right time, and this is something of paramount importance to

Enserve in the utilities industry. And the business benefits extend beyond financial ones, as employee motivation and training can be influenced through Northgate technology.

Tracking data can be used to advise drivers on smarter motoring techniques to help reduce fuel spend and the frequency of repairs and replacement parts, something that has saved Enserve £20,000 a year but has also resulted in the creation of a driving league that offers prizes to the company’s safest drivers.

Rebecca Sutherland, national strategic account manager at North-gate Vehicle Hire, says the company has been able to provide Enserve with a fully flexible, transparent package that not only responds to ever-changing client needs, but also provides a high

quality service at an affordable price. “Our relationship with Enserve

demonstrates that flexible vehicle hire is much more than a short-term option, with our flexibility and complimentary products allowing us to provide a full fleet solution for businesses,” she says.

A strategic solutionHaving an open partnership with your fleet supplier enables a more strategic approach. By moving to a long-term

rental model, the entire life cost of the fleet is reduced, while mainte-nance is taken out of the client’s hands, providing both cost and time savings. The result is minimised logistical disruption, with vehicles in better condition and on the road for longer, reducing downtime and sustaining fleet performance.

The perception of vehicle rental being short-term is archaic and needs to change; businesses of all sizes in every sector can benefit from a long-term, flexible model that removes the cost and worry associated with fleet management and allows time and funds to be allocated to the core business.

Northgate has sites across 77 locations in the UK and Ireland, with its head office in Darlington. For further information please visit: northgatevehiclehire.co.uk.

F O L L OW T H E L E A D E R : V E H I C L E R E N TA L

Vehicle rental is no longer just a short-term solutionOld model discarded in favour of flexible, long-term arrangements

“By moving to long-term rental, the entire life cost of the fleet is reduced, while maintenance is taken out

of the client’s hands”

For more information, please visit: northgatevehiclehire.co.uk email: info@northgatevehiclehire.co.uk or phone: 0800 0125 176

Northgate’s national network of wholly owned, fully equipped workshops allows for local, convenient SMR

Fit for purpose: Northgate can fit specialist equipment such as internal racking, roof racks, pipe holders and beacons