Leaders in the Central Maryland chapter of Meals on Wheels asked PHH Arval to resolve a problem it was facing – creating a van with heating and cooling elements to ensure proper meal delivery to seniors, the disabled, and others that are home-bound and in need – while minimizing vehicle maintenance costs and downtime expenses. Meals on Wheels’ fleet of makeshift vans had been aging and breaking down.
PHH responded by generating a vehicle design and lease structure that will enable Meals on Wheels to make more deliveries more quickly with fewer issues. The non-profit’s leaders tried the van, loved it, and ordered more. Since early 2013, the pair has made significant progress on optimal vehicle selection and replacement, best practices and cost-savings strategies.
Projected vehicle maintenance costs per mile (per vehicle) for the new van prototype is 50% less than the existing aging Meals on Wheels fleet. A team of PHH engineers and consultants have provided Meals on Wheels with expert recommendations around decreasing total cost of ownership, which provides opportunities for Meals on Wheels to deliver more meals to those in need. The new approach allows Meals on Wheels to replace 20 vans in five years instead of 10 years – and will be able to deliver 1,000 more meals a year.