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Ursapharm – Drastic cost reduction through strategic damage management

Highlights

Reduction of damage quota from 110% to 44%

Introduction of risk management

Optimization of the vehicle return process

Goals

  • Reduction of damage quota
  • Reduction and consolidation of insurance premiums
  • Transparency in repairs

Challenge

Reduction of damage quota

Ursapharm, a pharmaceutical company based in Saarbrücken, Germany, specializes in manufacturing pharmaceuticals and medical products for general medicine and ophthalmology and rhinology. Ursapharm is the market leader in moisturizing eye drops.

As is the case with all pharmaceutical companies, the field sales plays an important role, and the company’s fleet of around 100 vehicles is correspondingly large. However, the damage ratio has become a problem. It has risen continuously over the years and was 110 percent at the turn of the year 2016/2017. This not only led to rising insurance premiums, but also to enormous repair costs. And there was no end to increasing costs. For fleet manager Philipp Mayer, there was therefore an urgent call for action. At the same time, he was looking for a strategic damage management solution to get damage quota and costs permanently under control and reduce them in the long term.

Solution

Digital damage files and complete data integration

By opting for the Avrios fleet management platform, Ursapharm laid the foundation for transparent and seamless documentation. First, all vehicle, damage, and insurance data was digitized and connected with each other. Detailed damage files enabled Philipp Mayer to obtain a complete overview of both the number and amount of damages and the associated insurance data for the very first time. The software’s analysis tools revealed clear cost drivers such as high or unjustified repair costs.

As an immediate measure, all processes within damage management were reviewed and internal regulations revised. For example, the limit for minor damages without insurance settlement was raised to 1,500 euros. This resulted in an immediate reduction in the damage quota. At the same time, the company built up a network of experts. This included legal counsel and experts, as well as specialized workshops for the cost-effective repair of frequent claims. 

In a further step, the entire return process was integrated into the Avrios platform and optimized. This affected both the decommissioning of vehicles as well as leasing procedure. Thanks to the vehicle and damage files, fleet manager Philipp Mayer can accurately assess the condition of the vehicle at the end of the leasing contract and initiate repairs at an early stage. In this way, leasing and manufacturer specifications can be met and potential savings generated. 

With these measures, Ursapharm has succeeded in reducing damage quota from 110 to 44 percent within two years.

Benefits

Reporting and employee motivation

In order to avoid future damage costs and increase driver safety, Ursapharm established a risk management system. Philpp Mayer used the Avrios reporting system for this purpose in order to check all measures introduced for their sustainable success. The reports also helped Ursapharm to benchmark itself against comparable companies and to continuously develop its risk and damage management.

In order to sensitize employees to the financial consequences of damages, they were brought on board. Drivers are now informed in detail about the costs of damages and claims. Annual lottery tickets from Aktion Mensch are part of a reward system. The detailed damage files also helped Philipp Mayer to analyse reasons and patterns. To reduce the risk of damage, driver assistance systems such as cameras and parking pilots are now standard. Individual driver safety training courses are also offered on a regular basis. The digital damage and vehicle files are also the basis here, as they clearly show where the focus needs to be in the trainings.

With the integration of the Avrios fleet management software, it has been possible for the first time in recent fiscal years, both retrospectively and on an ongoing basis, to consolidate all relevant damage data in a single database and then process it in a targeted manner.
It’s a lengthy process at the beginning. but once a strategy is implemented and adhered to, it pays off in the long run.

Philipp Mayer

Fleet Manager, Ursapharm

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