Public fleet managers face mounting challenges in maintaining an efficient procurement process. Nearly nine in ten fleet managers say that their jobs are somewhat challenging, while one in two refers to their position as “extremely challenging” or “very challenging.”
Many of the stressors associated with fleet procurement include balancing the inefficiencies that plague traditional processes. After all, you have to maintain the efficiency of your public fleet procurement process to better serve your stakeholders and reduce internal pressures.
This article discusses multiple strategies for a more efficient fleet procurement process.
Inefficiencies in modern fleet procurement
According to a 2022 survey by Global Fleet, a fleet manager’s biggest obstacles to efficiency are:
- The need for electric vehicle procurement: Around 36% of the average fleet will be electric by 2025, with a deadline of mostly EVs and AFVs by 2035.
- Complex internal processes: According to the individuals surveyed, the complexity of internal processes is the manager’s biggest external obstacle to efficient fleet procurement (including traditional RFPs).
- Rising costs and inflationary concerns: More than half (53%) of fleets say that saving money has become a necessary part of their procurement to-do lists.
Many of these inefficiencies have become immutable elements in the procurement officer's role. However, their impact on fleet procurement can be managed and streamlined with the help of efficient fleet procurement solutions.
Six efficient fleet procurement solutions
Regardless of the size of your organization, you can focus on more efficient fleet procurement processes by integrating with modern solutions. Here’s how.
1. Create improved cost control rubrics
Fleet procurement costs are rising due to inflation, though leaner institutional budgets may be unable to keep up.
To remedy this, focus on rightsizing your fleets to control expenses. Remove excess vehicles that may not be the right fit for your team, or consider purchasing new vehicles to reduce pressure on existing models.
2. Make better vehicle selections in advance
It's far more difficult to purchase fleet vehicles efficiently if you don't know what models or brands you prefer. Building a rubric with your expectations up front can help managers and other stakeholders seamlessly navigate the process.
Create a standardized chart of your preferred vehicle brands, chassis, and equipment. Evaluators will find vehicle selection a breeze and can quickly find suppliers with your specifications in mind.
3. Find the right pace to electrify your fleet
Government fleets must be prepared for the EV vehicle transition, though many managers face internal opposition from stakeholders. For example:
- There may be a lack of adequate charging infrastructure at your facility.
- Your operators may have concerns or fears related to the driving range.
- EV brand ambiguity may prevent you from making informed decisions.
You should have transitional documents in place to ease these stressors as much as possible. Create a step-by-step prospectus of how you intend to electrify your fleet, all underpinned by SMART goals. Propose these plans to internal stakeholders, and address any concerns up front.
4. Digitize your chain of communications
Fleet managers are required to balance multiple stakeholder communications during the vehicle procurement process. Streamlining communications and reducing back-and-forth emails could produce significant time savings down the line.
Start by integrating with e-procurement software that everyone can access. Cloud-based solutions can help everyone stay on the same page, including HR, budget committees, and local, state, and federal officials.
5. Upgrade your data management capabilities
According to surveys, the lack of transparent data is the second-biggest internal obstacle to the efficiency of fleet procurement. Poor data can reduce the effectiveness of procurement processes and keep you from making better strategic decisions.
Acquiring report management tools can help you better understand if your data is important, and the right software can help you evaluate vehicle lifespans, calculate lifetime costs, and even measure fuel expenses.
6. Pick the right supplier for your needs
The right supplier can make or break your fleet procurement process. But the traditional process of choosing suppliers with an RFP can be complicated, drawn out, and confusing.
It’s better to find great suppliers with the help of cooperative contracts. There’s the potential to spend less money in the process, and you can save extra time, effort, and stress for everyone on your team.
Maximizing efficiency with cooperative contracts
Cooperative contracts are purchasing agreements between two or more organizations. The ultimate goal is to help you complete fleet procurement even faster. They are available to fleet managers in schools and governments and remain the most efficient way to procure necessary fleet equipment.
The team at Sourcewell provides hundreds of contracts with economies of scale, working to reduce your costs and increase your opportunities with hard-to-get equipment. Since Sourcewell and other organizations complete the bidding process on your behalf, all you have to do is select the right supplier for your needs.
With Sourcewell, you can browse cooperative contracts at no extra cost or obligation. Register your organization today and get started.
Here at Sourcewell, we help public agency buyers procure fleet vehicles faster by fulfilling the time-consuming bid process for them. Through cooperative contracts, we expedite the fleet vehicle procurement process so you can better serve your teams.
Want a faster procurement process? Contact one of our specialists today to buy the fleet solutions you need!