Save Time and Money

Amoskeag Beverages Saves Nearly 8 Days a Month and Over $200,000 a Year

Milage Tracking Technology

Client Info

Industry: Food and Beverage

Employees: 250+

Mobile Employees: 35

Geography: New Hampshire

Client Since: 2012

Challenge

Managing a fleet program was becoming increasingly difficult and costly as Amoskeag’s mobile workforce grew.

Goals

  • Reduce vehicle program costs
  • Improve operational efficiency
  • Ensure IRS compliance
  • Increase visibility into field activity

Solution

Motus’ fixed and variable rate (FAVR) reimbursement program, combined with GPS mileage tracking technology

Results

  • Time savings of ~1.8 hours per month per employee (nearly 8 workdays per month across the workforce)
  • More time spent with customers vs. manually tracking mileage
  • Annual savings of over $5,000 per employee
  • ROI within 3 months
  • Increased IRS compliance

Beverage wholesaler saves nearly 8 days a month and over $200,000 a year by transitioning to a reimbursement platform with automated mileage tracking

Amoskeag Beverages LLC is the largest beverage wholesaler in New Hampshire, selling over six million cases of beer and soft drinks annually. Amoskeag serves over 3,000 accounts across the state and represents a host of domestic, craft, import, water and energy drink brands. The company employs over 250 full-time employees, including delivery drivers and sales representatives who, collectively, travel almost two million miles annually.

The Problem: A Growing Mobile Workforce Leads to Rising Fleet Costs

The sales vehicles were looked at as a benefit, not as a necessary tool for sales reps to perform their jobs.
– Paul Malandrino
VP of Operations, Amoskeag Beverages

Prior to 2009, Amoskeag used a lease program to provide company vehicles for its salesforce. In 2009, Amoskeag merged with another New Hampshire beer distributor, doubling its annual sales and providing the company with the capital to fully purchase a large number of fleet vehicles at a discounted price. Amoskeag went from a combined fleet of 45 vehicles to 127 vehicles overnight.

This overnight expansion led to new growing pains and costs for Amoskeag. Of the total fleet, 35 vehicles were provided to sales representatives, with little control and visibility into their day-to-day operations. There was no means of mileage tracking and the company was liberal with allowing the sales team to drive vehicles for personal use. As a result, Amoskeag was paying for 100% of vehicle costs (including personal use), which was expensive and created a potential gap in IRS compliance.

“The sales vehicles were looked at as a benefit, not as a necessary tool for sales reps to perform their jobs. This part of the fleet was costing the company more money than it should have because there was a lack of visibility pertaining to how much they were utilizing the vehicles for personal use,” said Paul Malandrino, VP of Operations. “It was time to find a better way to manage the fleet and to make some necessary changes that could ultimately save dollars and put us in compliance with IRS laws.”


The Solution: Amoskeag Transitions to a Best-in-Class Vehicle Reimbursement Platform

In 2012, Malandrino set out to find an alternative vehicle program for Amoskeag that would meet four primary goals:

  • Reduce vehicle program costs
  • Improve operational efficiency
  • Ensure IRS compliance
  • Increase visibility into field activity

Malandrino researched industry best practices by speaking with other operations professionals in the beverage industry. Many saw great success in switching from fleet vehicles to a personally-owned vehicle reimbursement program. Malandrino searched for a potential partner and found that Motus’ customer service set it apart from other vehicle reimbursement platforms. Additionally, its tax-free, fixed and variable rate (FAVR) reimbursement program “fit Amoskeag’s business portfolio” and provided significant value from a cost-savings and compliance standpoint.

Motus’ app enabled all of our sales people to track and log their miles with no effort…it has made IRS compliance a breeze.
– Paul Malandrino
VP of Operations, Amoskeag Beverages

The Results: Automated Mileage Tracking Increases Compliance and Productivity

…the outcome was the following: better morale from the sales personnel, more time spent with customers and ultimately selling more product, and the ability for employees to spend some quality time with their families and friends.
– Paul Malandrino
VP of Operations, Amoskeag Beverages

In transitioning to Motus’ reimbursement program, Amoskeag found it important that its employees have access to GPS technology to automate mileage tracking in the field. Amoskeag employees record an average of 225 stops a month, each of which would take about 30 seconds to manually record with all IRS-required information (place, purpose and trip mileage).

By eliminating these manual entries and simply pressing “start” and “stop” at the beginning and end of their business days, employees using Motus’ app to capture mileage save about 1.8 hours per month. Over the full 35-person salesforce, that amounts to a total time savings of 7.8 workdays per month for Amoskeag. Says Malandrino, “When you look at the time saved in the aggregate, the outcome was the following: better morale from the sales personnel, more time spent with customers and ultimately selling more product, and the ability for employees to spend some quality time with their families and friends.”


Accurate Reimbursements Result in Significant Savings

Not only did Amoskeag see gains in employee productivity, but it also exceeded its savings goal. According to Malandrino, “The cost savings were more than we ever envisioned. As a company, we realized just how much these (fleet) vehicles were being used outside company business for personal use.”

By switching to a FAVR reimbursement program and paying for only the business use of vehicles, Amoskeag saved on procurement, depreciation, fuel, maintenance and insurance costs. This led to an annual savings of over $5,000 per employee and a total savings each year of about $215,500. “With an ROI within three months, it made the decision to go with Motus very satisfying,” Malandrino says of the beverage company’s success.

With an ROI within three months, it made the decision to go with Motus very satisfying.
– Paul Malandrino
VP of Operations, Amoskeag Beverages