Fleet management is one of the most challenging aspects of public procurement. Commercial vehicles may be difficult to obtain for less-experienced organizations, forcing them to cut corners, abide with higher costs, or settle for inefficiencies that reduce their procurement effectiveness.
Today, 60% of companies are unaware of how they can improve operations with data. While data-driven decision-making is critical to success, you might not know where to start with efforts to improve your fleet procurement strategy.
To that end, let's explore ways to streamline the procurement process, highlighting the power of five easy implementations.
Your organization must have a solid procurement strategy before implementing any optimization efforts. Three basic factors must be present:
Once you have each of these elements in place, begin the process of streamlining your existing procurement strategy.
Smoothing out your fleet procurement process may be less tedious than you think. You can use five major streamlining strategies: digitization, automation, implication, GPS location, and cooperation. Let's explore each of these in greater detail.
1. Digitize your strategy
If you're not using software solutions to power your procurement process, you're already behind. Fortunately, digitization doesn't have to be a complicated affair:
You can partner with a change management professional to ensure a smooth migration process.
2. Leverage automations
Automations streamline repetitive or tedious aspects of your procurement process, saving a surprising amount of time, money, and effort.
When evaluating opportunities to automate, keep an eye out for:
Just keep in mind that certain software automations cost a significant amount of money. Balance your checkbook before moving forward with any major purchase decisions.
3. Consider data implications
Data is the lifeblood of a good procurement strategy, so be sure you're using it to your advantage. Ask yourself: “How am I collecting data, and is it accurate?” Look for ways to improve your systems or enhance your collection methods over time. If you aren't currently using a business intelligence platform or an analysis tool, now would be an excellent time to do so.
4. Track your fleet with GPS
Location services make it easier to keep track of your fleet, know where your vehicles are at all times, and plan better routes for future deliveries. Some fleets automatically come with tracking tools, while others require non-native installations with third-party GPS tools. Still, the investment is always worth the effort.
You can use a simple online calculator to evaluate your GPS return on investment within the first year.
5. Turn to cooperative contracts
Cooperative contracts are an exceptional way to reduce the costs and risks of fleet procurement. You'll have access to:
Each strategy can create a flywheel of success for your fleet procurement process. However, cooperative contracts are by far the simplest and most effective option on the list.
Cooperative contracts are the most straightforward element of the five-point procurement strategy. Regardless of your organization type, size, or location in the US, you only need three steps to get started:
If you need additional assistance, you’re welcome to partner with one of Sourcewell's in-house specialists.
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!