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.
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.