Fleet procurement 101: what to consider before procuring a fleet

Procuring a fleet, with its myriad of administrative details, is a daunting task. There are so many things to consider, such as which vehicle makes and models will best serve your businesses’ purposes, not to mention maintenance and repairs, insurance and vehicle tracking among many others.

What undoubtedly takes the pain out of fleet procurement is getting a professional fleet solutions company to undertake a corporate fleet needs analysis, which will ensure that you don’t unintentionally gloss over a detail which may prove important in the future.

Here are some of the items that are covered by a needs analysis to ensure that your company gets the most out of its fleet.

1. Fleet financing cycle

The number one step in any fleet procurement operation is assessing the finances of a prospective fleet. Those offering fleet solutions should be able to account for the following:

  • How vehicles are financed.
  • The cost of fuel.
  • How are these costs managed (do they make use of fuel cards for example).
  • Vehicle disposal.

2. Maintenance costs

These are the questions one should ask a fleet solutions company in terms of their maintenance management and costs:

  • Have you assigned a maintenance cost manager/reviewer?
  • Do you have downloadable, or accessible, monthly maintenance cost documents?
  • Describe your typical maintenance cycle.
  • Does your maintenance system have the ability to store historical information relating to service, maintenance and tyre consumption?

3. Operations and logistics

To have a successful fleet procurement process, you should be stringent about considering operational and logistical challenges. For example:

  • The total cost of ownership of the vehicle fleet.
  • Insurance on vehicles (is it offered, what does it cover and at what cost?)
  • Preferred car manufacturers, suppliers and dealers.
  • The way in which fleet drivers should be managed.
  • What happens to vehicles when they reach their “end of life” period? Is the process cost effective?

4. Traffic fines

To keep costs down and avoid massive administrative backlogs, a top fleet procurement need should be a traffic-fines management system. This system should not only sort and assign fines to the correct driver, but also attempt to limit fines.

Questions to ask your potential fleet solutions company:

  • Do you have a fine-management system in place?
  • How do you pay the fines (on behalf of the driver?)
  • If the driver receives the fine and you pay it, should they pay the money back? How is this managed?

5. Accident management

Lastly you should make sure that a fleet has an accident management system in place that can handle the eventuality of random accidents on the road. Make sure to:

  • Check that there is a dedicated in-house accident manager/department.
  • Check that a policy is in place to deal with an accident (does it get assessed, is there insurance, driver responsibility etc.?)
  • Find out about vehicle recovery in the event of an accident (who tows, where to, and at what cost?)
  • Is there a way to track the repair process and manage and access the historical information?

Having looked at the initial points on our Fleet Procurement 101 series you should now be in a better position to do a fleet needs analysis off the cuff and to consider the advantages of employing the services of a professional fleet procurement and solutions team such as Avis Fleet.

Read Part 2 here


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