Luxottica Goes Global with PHH Arval Global Alliance

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In 2010, the world’s leading eyewear company, Luxottica, chose Arval when it switched from company-owned fleets in each country to a global, full-service leasing car policy. The decision quickly proved its merit by yielding benefits that included reduced fleet costs to greater management control in little more than a year after it was implemented.

Mobil­i­ty is a vital part of Luxottica’s busi­ness, both for its man­agers, as well as its sales and mar­ket­ing staff, who work with a vast net­work of retail out­lets. Lux­ot­ti­ca is the world’s largest eye­wear man­u­fac­tur­er. Until 2010, Luxottica’s sub­sidiaries pur­chased their own fleet vehi­cles, with man­agers able to choose any brand up to a max­i­mum list price.

Then, Lux­ot­ti­ca turned to inter­na­tion­al full-ser­vice leas­ing with Arval. As a result, deci­sion-mak­ing and fleet man­age­ment switched from being local to cen­tral­ly-man­aged. Lux­ot­ti­ca also devel­oped a glob­al car pol­i­cy built around four key man­u­fac­tur­ers world­wide with Arval’s help.

Economies of scale, har­mo­niza­tion of busi­ness prac­tices, low­er CO2 emis­sions, opti­mized inter­nal pro­ce­dures, and improved con­trol were among the objec­tives that Lux­ot­ti­ca sought. Equal­ly impor­tant was Luxottica’s desire to pro­vide more equi­table gov­er­nance – with a har­mo­nized vehi­cle range by job func­tion across dif­fer­ent coun­tries. “Our employ­ees were increas­ing­ly trav­el­ing across Euro­pean bor­ders and it was becom­ing unten­able to have dif­fer­ent cat­e­gories of car for the same employ­ee lev­el from one coun­try to anoth­er,” explained Lau­ra Gob­bis, Luxottica’s Fleet Pro­cure­ment Man­ag­er. “We need­ed a car pol­i­cy for the whole of Europe.”

Key fac­tors: TCO and expert advice

Con­vinced of the ben­e­fits of full-ser­vice leas­ing, such as low­er fleet costs, improved cash flow and reduced admin­is­tra­tion, the ques­tion fac­ing Lux­ot­ti­ca was the choice of sup­pli­er. “When it came to select­ing a leas­ing part­ner, “said Gob­bis, “we need­ed a com­pa­ny with a glob­al reach because of the nature of our busi­ness, and we had been work­ing with Arval since 2001. They under­stood what we want­ed to do; they endorsed the con­cept of TCO and were able to pro­vide expert advice. That was all very impor­tant. “

Arval’s tech­ni­cal exper­tise, cou­pled with its Car Con­fig­u­ra­tor, pro­vid­ed Lux­ot­ti­ca with con­sid­er­able help in select­ing its four mar­ques. The com­pa­ny signed an Inter­na­tion­al Frame­work Agree­ment in 2010 for Europe, and extend­ed it world­wide in 2011. At that point, Lux­ot­ti­ca became an Inter­na­tion­al Strate­gic Account, man­aged by Arval’s Inter­na­tion­al Busi­ness Office (IBO). In lit­tle more than a year, the tran­si­tion to full-ser­vice leas­ing as part of an opti­mized glob­al car pol­i­cy was com­plete – a remark­able achieve­ment giv­en the timescale.

Key to that suc­cess has been Arval’s abil­i­ty to coor­di­nate close­ly with the client, and to adapt to meet its needs. “Hav­ing estab­lished the car pol­i­cy, we also want­ed advice and sup­port with rolling it out around the world – and that’s exact­ly the sup­port we received from the IBO,” Gob­bis recalled.

Flex­i­bil­i­ty in meet­ing client needs

An exam­ple of that help was demon­strat­ed in 2011 in the US, where the Arval Glob­al Alliance Part­ner, PHH, repli­cat­ed the Euro­pean pol­i­cy in the US mar­ket. Today, the glob­al fleet is mon­i­tored cen­tral­ly using Arval Ana­lyt­ics, a tool much appre­ci­at­ed by Lux­ot­ti­ca as it pro­vides a snap­shot based on a range of para­me­ters includ­ing fleet size, vehi­cles on order, usage and spend and CO2 emis­sions. Said Gibbs: “You real­ly have your fin­ger on the pulse on the fleet – I’m con­vinced that if you want to man­age your fleet cen­tral­ly, you can’t do with­out it.”

Cut­ting fleet costs, low­er­ing CO2 emis­sions

For Lux­ot­ti­ca, the ben­e­fits of its part­ner­ship with Arval are wide-rang­ing. The lev­el of sup­port, the access to expert advice and fleet man­age­ment tools like Arval Ana­lyt­ics, with its in-depth report­ing, has helped it opti­mize a fleet that strad­dles much of the globe. Clear­ly, though, the vital ben­e­fit has been finan­cial. With­out dis­clos­ing fig­ures, Gob­bis said: “Cost reduc­tion has been sig­nif­i­cant. It’s been a good result in terms of out­sourc­ing. By switch­ing to full-ser­vice leas­ing, focus­ing on four brands and bench­mark­ing a car’s TCO instead of its list price, we achieved imme­di­ate sav­ings. There will also be more economies of scale to come as we have a clear­er idea of your fleet costs in advance.”

Reduc­ing the fleet’s impact on the envi­ron­ment was anoth­er key objec­tive for Lux­ot­ti­ca and, again, Arval’s exper­tise helped the com­pa­ny achieve its objec­tive. Aver­age CO2 emis­sions for fleet vehi­cles as a whole fell from 152g/km in 2010 to 138g/km at the end of 2011, while the aver­age for the vehi­cles deliv­ered for Lux­ot­ti­ca in 2012 is even low­er, at less than 130g/km with a high share of vehi­cles in the upper-pre­mi­um seg­ment.

Look­ing ahead, Lux­ot­ti­ca sees greater fuel-effi­cien­cy as the way for­ward – rang­ing from BMW’s Effi­cient Dynam­ics and Volk­swa­gen Group’s Blue­Mo­tion to hybrid and even elec­tric cars. Lux­ot­ti­ca is also get­ting advice from Arval in order to opti­mize costs by improv­ing dri­ver behav­ior. Under­pin­ning both ini­tia­tives, though, is Luxottica’s belief that what­ev­er tech­nolo­gies emerge; Arval will con­tin­ue to sup­port Lux­ot­ti­ca opti­miz­ing their TCO (Total Cost of Own­er­ship) at inter­na­tion­al and local lev­el.

About Lux­ot­ti­ca:

Lux­ot­ti­ca Group is a leader in pre­mi­um, lux­u­ry and sports eye­wear with over 7,000 opti­cal and sun retail stores in North Amer­i­ca, Asia-Pacif­ic, Chi­na, South Africa, Latin Amer­i­ca and Europe, and a strong, well-bal­anced brand port­fo­lio.

Pro­pri­etary brands include Ray-Ban, the world’s most famous sun eye­wear brand, Oak­ley, Vogue Eye­wear, Per­sol, Oliv­er Peo­ples, Alain Mik­li and Arnette while licensed brands include Gior­gio Armani, Bul­gari, Burber­ry, Chanel, Coach, Dolce & Gab­bana, Don­na Karan, Polo Ralph Lau­ren, Pra­da, Star­ck Eyes, Tiffany and Ver­sace.

In addi­tion to a glob­al whole­sale net­work involv­ing 130 dif­fer­ent coun­tries, the Group man­ages lead­ing retail chains in major mar­kets, includ­ing LensCrafters, Pearle Vision and ILORI in North Amer­i­ca, OPSM and Laub­man & Pank in Asia-Pacif­ic, LensCrafters in Chi­na, GMO in Latin Amer­i­ca and Sun­glass Hut world­wide.

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