A Key to Growth for NationaLease



Overview

Country or Region: United States

Industry: Transportation

Customer Profile

National Truck Leasing connects 120 independent truck leasing companies and provides them with reciprocal emergency services, leveraged buying power, training, and insurance.

Business Situation

NationaLease required a system that enabled them to connect seamlessly with both vendors and franchisees.

Solution

National Truck Leasing System uses Microsoft® Business Solutions–Great Plains® with Dexterity® and SQL™ customizations allowing total integration of ordering and billing processes.

Benefits

■ Leveraged buying

■ Automated accounting

■ Increased growth

■ Savings in time and money

| | |"We couldn't be in business doing what we are doing today without Microsoft Business Solutions."

Mark P. Joyce, Vice President of Finance, National Truck Leasing System

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| | | |National Truck Leasing connects 120 independent truck leasing companies and provides them with |

| | | |reciprocal emergency services, leveraged buying power, training, and insurance. Utilization of |

| | | |Microsoft Business Solutions–Great Plains (now part of Microsoft Dynamics™) has helped NationaLease |

| | | |grow by over 20 percent per year in the last decade. They have experienced 17 years of continuous |

| | | |growth. Microsoft Great Plains technology has enabled NationaLease to provide “large company |

| | | |benefits” to all NationaLease affiliates. Affiliates have received over $16 million (approximately |

| | | |nine percent of their purchases) through rebates received as a result of leveraged buying through |

| | | |NationaLease. NationaLease has also reduced their paper usage by 95 percent and reduced |

| | | |administrative accounting staff by five FTEs. |

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Situation

When seventeen truck leasing companies bonded together to improve their business in 1944, National Truck Leasing System (NationaLease) was born. Within two years the company was generating revenues of $35 million and today they are a $4 billion company with a fleet of 65,000 trucks, tractors, and trailers.

While the company started primarily as a way for its affiliates to provide over-the-road emergency services for each other, today small independent truck lessors affiliated with NationaLease benefit from the ability to hold their own against large national competitors. Currently, 120 Independent truck leasing companies pay a fee to join NationaLease. Benefits to them have expanded to include industry intelligence, training programs, insurance, purchasing programs, and National Account marketing.

NationaLease Purchasing Corporation (NPC) serves as a separate buying entity for members of NationaLease. They have seen growth of over 500 percent in the past ten years. NPC negotiates using the strength of 550 locations to enable affiliates to “buy smart,” also returning over $16 million in rebates to them in 2002. NationaLease members have also helped to establish the Truck Renting and Leasing Association (TRALA) which monitors and lobbies for federal and state legislation on behalf of the entire truck leasing industry.

Solution

NationaLease has used Great Plains since the 1980’s. They were ecstatic about Microsoft’s acquisition of Great Plains since Microsoft® software has always been their technology of choice. When EDI technology became available, NationaLease met with Microsoft and jumped at the chance to increase connectivity with vendors and members. Microsoft Business Solutions–Great Plains® provides NationaLease with invaluable connections to affiliates including payment of franchisee fees, billing of vendor payments, and rebate payments. Connections provided with vendors include orders, payments, and submission of rebates.

Customization enables NationaLease’s integrated Order Entry system to serve as the hub for processing accounts. This system allows a single entry of a vendor order to be split into multiple receivables for several affiliates and to payables to a vendor. A customized EDI bridge automatically reformats incoming EDI invoices from vendors and creates corresponding affiliate invoices and vendor payments.

Benefits

Buying Leverage

Thanks to the efficiencies of Microsoft Business Solutions–Great Plains, NationaLease has been able to establish significant buying leverage for their affiliates. Large-volume purchasing discounts are made possible by NationaLease with the help of Microsoft Business Solutions. Vendors and manufacturers send a consolidated bill to NationaLease and individual companies are billed through NationaLease, rather than separately. This collaborative buying enables members to purchase trucks, trailers, tractors, plus shop and office needs at the lowest possible price. Annual sales to affiliates are in excess of $185 million and they receive rebates of approximately 9 percent or over $16 million.

Automated Accounting

Using EDI technology has allowed NationaLease to streamline and simplify accounting and other business processes while minimizing paperwork and increasing productivity. In 2002, two people were able to process 1.2 million transactions with very little manual intervention. Check processing has been reduced from two days to two hours.

Increased Growth

Microsoft Business Solutions–Great Plains has enabled NationaLease to almost double in size in the past 15 years, while decreasing their staff size. They have experienced 17 years of continuous growth and over 20 percent growth in recent years, while reducing their administrative staff by 5 FTEs.

Savings in Time and Money

Online invoicing has eliminated a 150-piece weekly mailing, saving 25 hours weekly of staff time and cutting paper usage from 40,000 to 2,000 pieces per month (a reduction of 95 percent).

Microsoft Dynamics

Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like familiar Microsoft software such as Microsoft Office, which means less of a learning curve for your people, so they can get up and running quickly and focus on what’s most important. And because it is from Microsoft, it easily works with the systems your company already has implemented. By automating and streamlining financial, customer relationship

and supply chain processes, Microsoft Dynamics brings together people, processes and technologies, increasing the productivity and effectiveness of your business, and helping you drive business success.

For more information about Microsoft Dynamics, go to:

dynamics

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| |Software and Services

■ Microsoft Dynamics

− Microsoft Business Solutions Financial Management

− Microsoft Business Solutions Supply Chain Management |

− Microsoft Business Solutions–Great Plains

Partners

■ LANAC Technology | |

© 2005 Microsoft Corporation. All rights reserved. This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Microsoft, Great Plains, Microsoft Dynamics and Windows are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Document published July 2003 | | |

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For more information about National Truck Leasing System products and services, call (630) 953-8878 or visit the Web site at:

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