Khula Fleet Solutions Brochure

KHULA

FLEET SOLUTIONS

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Fleet Domain Advert.pdf

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Comprehensive Online Fleet Management Solution For

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Fleet Management Companies

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Vehicle Rental Companies

Fleet Owners

Motor Dealerships

Motor Manufacturers

• Access real time information from multiple sources ….anywhere….anytime

• Improve efficiencies, drive down cost, reduce risk and achieve sustainable business results

Mike Leicester | OFFICE +27 11 712 1300 | mike.leicester@fleetdomain.co.za 2nd Floor, 34 Melrose Boulevard, Melrose Arch, Johannesburg, South Africa

www.fleetdomain.co.za

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Driving business FORWARD

Life in the fast lane, with Darren Pillay, founder of vehicle leasing company, KHULA Fleet Solutions.

Darren Pillay was a humble W hen fleet management clerk, he had

dreams – but not as big as the ones that have come true.

As a young man, he had bags of enthusiasm and a keen eye for detail as he clambered up the corporate ladder.

But something else was burning inside the budding entrepreneur. That flame flickered for some years, before igniting a passion to be his own boss.

Starting out on his own four years ago, he now pilots a company with a R200m turnover and a contract with one of South Africa’s biggest players, Transnet.

KHULA Fleet Solutions is providing the state-owned freight and pipeline operator with 2,500 vehicles, on a fiveyear contract.

So how does a lone wolf set out to snare one of the most enviable contracts in Africa’s fleet services industry? Good luck, faith and a driving

ambition are three things the amiable businessman can point to: “When I was working in fleet management on the Transnet account, I became aware that they were thinking of going out to tender at the end of the contract. I realised that, even though I had the comfort and security of a good job, if ever there was a time to go for it, this was it.

“As you can imagine, this was not an easy decision, I had a family and knew the house would be at risk. I literally left my job on the Friday and started KHULA Fleet Solutions on the Monday, thanks to the support of my wife, who stood by me throughout all the trials and tribulations. For this, I will forever be indebted to her.”

“I was a one-man-band as I put all the pieces into place, to ensure the business had a solid framework should we start to win business.”

Darren Pillay

Darren had raised some working capital, but it was not until six months after starting up, that he was able to employ staff.

The big break came when Transnet called and asked: “Are you ready to do business?” One major factor in his favour was Transnet’s insistence AFRICAINDUSTRYMAGAZINE.COM 3

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that their suppliers should have black economic empowerment at the heart of their policies.

He acknowledges that the organisation put a tremendous amount of faith in his ability to deliver the vehicles and services he promised: “If it was a big gamble for me personally, it was also a leap of faith for Transnet, going from dealing with a big corporate player to asking us to handle 2,500 vehicles over 18 months.

“I was determined to make it happen, despite all the odds of competing in a

KHULA Fleet Solutions reflects the principles that have helped its founder make his mark.

Part of the company ethos is black empowerment and giving young people a chance marketplace dominated by big players.

We also had to raise significant finance at a time when there was nothing on the balance sheet.”

What made Darren stand out in this crowded market was not just his experience in the industry, but his vision of a new way to do business, of a young company that was nimble and fleet of foot.

Transparency and driving down costs are the watchwords at KHULA Fleet Solutions, ensuring that clients know they are getting a good deal. Too often, large contracts can be wrapped up in so many layers of bureaucracy that it is difficult for the customer to determine whether he is getting value for money.

“The model for the business was always there, but it developed organically. The industry has been stale for some time and that’s because it is dominated by big players, so it is not easy to break into.

Some of the KHULA Fleet Solutions staff

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If it was a big gamble for me personally, it was also a leap of faith for Transnet

have to lease vehicles themselves before hiring them out, but now the policy is to acquire vehicles. In addition, a funding facility of R400m was put in place on the back of the secure contract.

The company has never made a loss, but all earnings above cost are ploughed back into the business. New offices have opened in several locations and another is currently in the pipeline at Richards Bay. Darren continued: “We own the vehicles outright, but initially, for some contracts, we would hire them and lease them. Although we have a funding facility, the strategy is to reduce gearing.

“We have received funding, but have never had a blank cheque. This is not “I knew we had to stand out, to be nimble and flexible and, more importantly, to always be ready to meet client requirements. We have a transparent, open-book policy, so that our clients always know what they are getting, what to expect and what they are paying for. We do not rip the customer off.

“We are always thinking about how we can positively impact the client’s business, rather than simply servicing a contract.”

When Transnet were confident they had made the right choice, the two parties signed a five-year contract for two of Transnet’s Regions. This has given KHULA Fleet Solutions security and stability as well as the ability to look at a long-term corporate strategy.

Initially, KHULA Fleet Solutions would

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a mature business, but we have still come a long way in a relatively short period of time.”

Now that the future has a firm foundation, Darren can focus on winning other contracts in the fleet management sector.

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Firm foundations KHULA Fleet Solutions reflects the principles that have helped its founder make his mark. Part of the company ethos is black empowerment and giving young people a chance.

Figures show that: ■ 59% of staff were unemployed at the time of engagement ■ 63% were young people ■ 92% HDI (Human Development Index) The contract with Transnet demonstrates that giving opportunities to disadvantaged communities can

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Darren Pillar with Mr Simpiwe Simelane at the Comms Port fleet handover

I knew we had to stand out, to be nimble and flexible and, more importantly, always be ready to meet client requirements

pay off. But, of course, it has to be to the advantage of the business itself. As Darren explains: “We believe in black empowerment, but we don’t ride on the coat-tails of that position, we are building a business because we have the right people in place.”

The culture of the business had to be about growth and development, for the staff within the business, for suppliers who provide the organisation with products and services as well as for the community in which it operates.

Through its supplier development initiatives, KHULA Fleet Solutions continues to support and develop small to medium enterprises and, as such, has engaged with various organisations since its inception and the award of the contract. A notable initiative, which has been recently established, is with an organisation called Comms Port (Pty) Ltd. The organisation was founded

by Mr. Simphiwe Simelane, who is based in Richards Bay. Mr. Simelane,

contacted KHULA Fleet Solutions in October 2015, with the hope of creating a business relationship with them.

At the time, Mr. Simelane, had two vehicles available, which he offered to KHULA Fleet Solutions to use as part of the outsourced supplier development model that they had implemented.

KHULA Fleet Solutions made available, R2m of its own cash resources to Comms Port (Pty) Ltd, in order for the organisation to procure additional vehicles, which it would then rent on to KHULA Fleet Solutions, in line with the outsourcing framework falling under our SD obligations.

The first batch of vehicles, funded through the finance loan, were delivered in May 2016, with part of KHULA Fleet Solutions’ mission being to embody Transnet’s strategy of growing small, black-owned enterprises – not simply to conform, but to embody the spirit of BBBEE within its business model. The word

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It is a critical part of the business to have close working relationships with strategic partners Educor vehicles

‘KHULA’ is itself a verb which means to ‘grow, increase or thrive’. One of the company’s fundamental motives is to share its successes and help people and organisations grow. KHULA Fleet Solutions established itself to provide stakeholders with a vehicle for an official handover of the vehicles taking place between KHULA Fleet Solutions and Comms Port.

How KHULA operates The company policy is broadly based on a strategy of continuous improvement.

This means always being on top of the important factors that make for a progressive organisation and that give enhanced value to customers.

Attention to detail ensures: ■ The fleet is the right size ■ There is the right mix of vehicles ■ Improved driver awareness via green training courses ■ Improved vehicle maintenance tracking ■ Comprehensive reporting on vehicle operations ■ Enhanced communications Full Maintenance Leasing: The objective is to be the best alternative provider for Full Maintenance Leasing and to ensure that clients have an effective, well-

managed and well-maintained fleet, with the aim to reduce costs as much as possible.

Services include: ■ Sourcing and purchasing ■ Tyres ■ Management information ■ Vehicle tracking ■ Fines management ■ Finance and leasing ■ Relief vehicles ■ Disposals ■ Fuel management KHULA Fleet Solutions also offers Operational Leasing, which is a slightly reduced service to Full Maintenance and offers short-term rentals.

The four ‘Cs’ – Commerce, A dream is launched Darren Pillay gained degrees in transport economics and logistics, attending both Witwatersrand and the University of Johannesburg.

This gave him a firm grounding in fleet management and logistics, enabling him to secure positions within the industry.

It was working at Viamax, the in-house fleet services provider for Transnet, that established his credentials. Later, Viamax was sold to Bidvest, as part of Transnet’s strategy to refocus its business. Darren was

retained in the position of sales and marketing director, before assuming the position of operations director.

He explained: “I was in the industry as a fleet administrator involved in road, rail, ports and transport infrastructure. I worked my way through the ranks from 1996. I was with Viamax and, when they sold the business, I was the only executive to be retained – which is not usual in these circumstances – and I took up a role with Bidvest.

“My experience led me to gain an insight into the world of Transnet and to appreciate what they were looking for. “It was in 2012 that Transnet indicated they were looking to move on with their contract and that enabled me to think about how I could facilitate just what they were looking for.”

Although Darren had an insider’s grasp of what was required, the industry is heavily regulated, so Transnet still had to go through the tender document process.

The outcome was ultimately successful. But Darren sees this as the beginning of the journey, not the end.

Efforts are now being made to push on, to make KHULA Fleet Solutions a serious player, without making the mistake of becoming so big that it loses sight of its original philosophy.

Darren continued: “We are now looking at corporate strategy and how we can diversify risk. I have explained

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that, for us, minimising risk and costs for clients is everything. We are now in a much better position to seek further opportunities going forward.

“But I won’t forget our core values, or the time when we had liabilities of R120m that kept me awake at night.

“I am very hopeful, though. If you look at companies that run their own fleets, they can’t meet the kind of aspirations we have, because they are focused on their own core businesses. We are nimble, fleet of foot – like a big cat!”

important to work with those people you can trust and rely on.”

KHULA Fleet Solutions has forged good relations with a number of companies, such as other fleet managers like Super Rent and FleetDomain, as well as JPS Panel Beaters.

“At KHULA Fleet Solutions we feel it is very important to have these close working relationships and it is our trusted strategic partners and the help of all KHULA Fleet Solutions’ staff that contribute to our continued growth and success as a company.” ■

Strategic partners It is a critical part of the business to have close working relationships with strategic partners. KHULA Fleet Solutions has built these up, thanks to Darren’s years of experience within the industry.

“We know close working relationships are very important, in fact, it is one of the key ingredients for success. It is

Ctrack vehi8cle handover

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leetDomain’s primary solution, FleetDomain Online, has been successfully implemented by fleet management companies, fleet owners, vehicle rental companies, motor dealers and motor manufacturers across southern Africa This solution, through the provision of real-time information extracted from multiple sources, enables companies of all sizes to significantly improve the management and control

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KHULA Fleet Solutions (Pty) Ltd Head Office Suite B, Carlswald Close Office Park Cnr. New Road & 7th Road Midrand Tel: (010) 010 6508/9 Operations Building 1, East Side Corporate Park Richards Drive, Halfway House Midrand Tel: (010) 010 6510/1 Durban 50 Fish Eagle Road, Bayhead Durban Tel: (031) 010 0225 Port Elizabeth 53 Sixth Avenue, Newton Park Port Elizabeth Tel: (041) 450 4660 Cape Town c/o Regus Business Centre 1st Floor, Willowbridge Mall 39 Carl Cronje Drive, Tyger Valley Cape Town Tel: (021) 974 6262 Fax: +27 (086) 762 0775 Email: salesenquiries@khulafleet.co.za everest global media ltd Email: info@everestglobalmedia.com Company number: 09619508 everestglobalmedia.com africa industry magazine Issue 03 Copyright Š 2017 Everest Global Media Ltd All rights reserved

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