Case Study: Coca-Cola Bottling reduces vehicle risk and costs with Runzheimer FAVR reimbursement

Coca-Cola Bottling of Leigh Valley, PA Reduces Risk While Producing Cost Savings

Coca-Cola Bottling of Lehigh Valley faced significant challenges managing its fleet of company cars, including high liability exposure, hard-to-control maintenance costs, and substantial fuel expenses. As a very competitive bottling company, it needed to keep its customer-facing team mobile without the burden of vehicle ownership. Seeking a better solution, they partnered with vendor Runzheimer to implement their fixed and variable rate (FAVR) reimbursement program.

Runzheimer's FAVR program allowed employees to use their personal vehicles for business and receive tax-free reimbursements. The solution included online tools for mileage logging and electronic payments. This program produced major cost savings for the company, with fuel, maintenance, and repair costs each dropping by 80%. Furthermore, the company's accident rate fell by 83%, significantly reducing its liability. Employees also benefited from the tax-free program and the ability to choose their own vehicles. Runzheimer's expertise ensured IRS compliance and provided excellent ongoing service.

Coca-Cola Bottling

Deborah Smalley

Director of Finance