Procurement practices can mean the difference between the success or failure of a company. When it comes to vehicle procurement, decision-makers have to take several considerations into account and ensure that they are examined closely. In this blog, we take a look at the proper fleet procurement strategies for companies.
Make the right choices
Fleet Managers need to start with the nature of their fleet and what the vehicles will be used for. Will they require smaller makes of vehicles to be used as company cars, a commercial fleet to deliver goods or services or to transport people, or vehicles for emergency services or construction purposes? These questions must be asked because each type of fleet will have a unique set of requirements.
Fleet Managers as Supply Chain Managers
The priorities of your business must also be taken into account. Should the vehicles be affordable, safe or efficient? In a sense, fleet managers must also be supply chain managers who have to constantly evaluate if they are getting the best products and services from their suppliers. This involves considering effective Key Performance Indexes (KPIs) and Service Level Agreements (SLAs) to ensure that their fleet is performing optimally. This process will also require a knowledge of the comparative benefits of different suppliers and a knowledge of vehicles available in the industry to identify which will be best suited for your business needs. Vehicle procurement also requires insight into tax and government regulations to ensure that your business is compliant.
The right fleet management company
Since there are so many issues to weigh up for effective fleet management and procurement, it’s not surprising that many fleet companies and businesses that operate a fleet (which isn’t part of their core business) prefer to outsource the management of their fleets. But it’s important to outsource your fleet to the right fleet management company. Ensure that your fleet management partner has the required experience and technology to benefit your business. A word of warning when considering leasing options: remember that what seems to be a cheaper quote might not turn out to be cheaper in the long run.
When you partner with the right fleet management company, you will not only benefit from the experience and technology that’s been built up over the years, you will free up the time you would have spent on tasks that are not part of your core business. These include evaluating fleet KPIs and SLAs, comparing the relative benefits of vehicles and familiarise yourself with the required legislation. This will allow you up to focus on your business strategy, knowing that these issues have been well taken care of.
Avis Fleet solutions are a comprehensive offering that enhance every aspect of fleet management. We have solutions that help customers with everything from vehicle acquisition to maintenance, Telematics and making provisions for accidents. Find out about vehicle procurement and our other fleet management solutions.