A harmonized fleet solution for greater cost transparency

TCO analysis helps MONDI make better procurement investment decisions

Our customer MONDI

As a manufacturer of sustainable packaging solutions, the Mondi Group employs around 26,000 people across 30 countries. Hundreds of industrial trucks continuously operate at the pulp and paper production sites. CHG-MERIDIAN conducted a fleet and TCO analysis for Mondi to procure industrial trucks and aid in procurement decision making.

Challenges

UNCLEAR TCO Lack of overview about total cost of ownership

DISPARATE FLEET The current fleet structure is not adequate to meet the requirements

NEED FOR DIGITIZATION The procurement and management of the fleet is not harmonized and managed digitally

Comparability of investment and total costs

When MONDI needed to procure industrial trucks, they faced a challenge: a lack of data-driven insights to determine the most suitable vehicles based on cost and efficiency. They found it challenging to compare different investments and total costs effectively.CHG-MERIDIAN stepped in by conducting a TCO analysis of Mondi‘s entire fleet. This analysis included a productivity test that compared different makes of the same vehicle type. The results were used to visualize the differences in investment costs among the various makes, helping MONDI make informed decisions.

Our customized technology2use success formula

ASSETS Hundreds of industrial trucks in use at production sites across 30 countries worldwide.

FINANCE Classic leasing: "Usage instead of ownership" is the motto of our financing concept. With regular installments instead of large upfront investments, leasing offers better budget planning and helps to manage cash flow.

SERVICES TCO analysis: CHG-MERIDIAN conducted a comprehensive TCO analysis by performing a productivity test on various brands at a pilot site. This analysis provided MONDI with a solid foundation for making future investment decisions.

Conclusion

As a result, Mondi received a comprehensive decision matrix from CHG-MERIDIAN. This matrix included an assessment of the optimal useful life, replacement cycles and financing options in relation to the acquisition costs. With this new decision matrix, Mondi’s decision makers now understand the potential price differences. This allows the purchasing department to justify, for example, the procurement of a brand that is 20 percent more expensive as it may still be more cost effective overall.

"When purchasing industrial trucks, we lacked a basis for comparing the acquisition costs. It was therefore difficult for us to assess which vehicle was actually the most cost-effective for our individual needs, from an overall cost and efficiency perspective. CHG-MERIDIAN carried out a fleet TCO analysis using a productivity test to compare different brands of the same vehicle type. We now have a reliable and objective basis for decision-making."

Mariyan Banchev, Category Manager Technical Services & Automation at the Mondi Group