Order-to-delivery (OTD) dates for fleet purchasers are only getting longer. Some vehicles maintain three-digit delivery dates forecast long into the future, while others range from three to six months out. Specialty vehicles, including customized chassis, may take even longer.
Bloated OTD timelines affect all buyers, but public fleet procurement processes suffer more than private enterprises. This deeply impacts public audiences and stops necessary resources from reaching certain individuals, a downward spiral that only worsens over time.
Let’s examine the prerequisites of a speedier government fleet procurement process.
Why the government fleet procurement process is more time-consuming than private sector purchasing
There are millions of public fleet vehicles at the local, state, and federal levels. Each requires careful attention to detail, a corresponding procurement strategy, a risk mitigation plan, and lifetime value forecasting. It also takes a good deal of time to obtain, especially from a compliance and regulatory viewpoint.
Government fleet procurement processes face three major obstacles that are less prevalent in the private or civilian worlds:
- Compliance regulations: Government institutions are subject to legislation that doesn't always apply to private sector organizations. Since most public fleets have many vehicles (including specialty automobiles), buyers must contend with additional regulations that require more time, effort, and funding.
- Lean operations: Many public fleets run on slim margins with little to no flexibility. Tight budgets lead to tight restrictions on upgraded software or IT tech, which could put public fleet managers in a bind. Some agencies may have to wait several years in order to save enough budget to purchase an important vehicle.
- EV standards: The mission of sustainable energy and zero-carbon emissions is ramping up for government agencies. These fleet electrification policies, which may vary from state to state, require additional forethought and planning for public fleet managers. It may be difficult to source EV vehicles in a quick, efficient, and cost-effective manner.
It's clear that unique strategies must be put in place to expedite traditional government fleet processes. Fortunately, this strategy isn't hard to construct. It begins with a comprehensive understanding of modern fleet procurement processes.
Three ways to expedite the government fleet procurement process
Speeding up your fleet procurement process doesn't have to be a pipe dream. By following specific expert suggestions, you can help your government agency sidestep unnecessary pitfalls and speed up its OTD.
1. Overhaul outdated fleet management software
Dated technology is a major inhibitor of success for public fleets. Compounded by limited budgets and extreme labor shortages, it may be difficult to purchase vehicles quickly if your technology can't match your speed.
You must upgrade your tech stack completely to expedite your procurement process. Federal institutions can utilize the Technology Modernization Fund to replace old tech with newer devices. If you are a state or local government, look to fleet technology to increase your speed with new insights.
2. Prioritize compliance with standardization
Vehicle standardization is a boon for public fleet procurement. By setting a boilerplate for all your vehicles, you can purchase, maintain, and upgrade them even faster. This means fewer hours wasted on paperwork, more time spent on fleet-wide initiatives, and a greater capacity for innovation. You can also enjoy better markers on fuel costs, maintenance costs, and time spent writing an RFP.
3. Turn to best-in-class cooperative contracts
RFPs are costly, dated, and time-consuming methods of public procurement. In contrast, cooperative contracts are simplified purchasing agreements that offer competitively solicited rates through economies of scale. Leveraging them correctly allows you to establish consistent prices, reduce OTD times, and eliminate procurement silos that ultimately create inefficiency.
Integrating your government fleet procurement process with cooperative contracts
Your government organization can begin using cooperative contracts within minutes, regardless of past experience. With Sourcewell, you can access hundreds of awarded contracts in a single, easy-to-use portal.
Getting started is fast, simple, and easy:
- First, check your eligibility to leverage cooperative contracts. Local, state, and federal organizations are all welcome at Sourcewell. If you aren't sure if you qualify, you can browse legislation by state.
- Next, register your organization with Sourcewell. Keep in mind that you may already be registered in the system, so be sure to check before going through the extra effort. Once done, you can browse hundreds of competitive contracts that may meet or exceed your needs.
- Finally, select the contracts that work for you and contact the supplier for more info. If you need help getting started, you can work with an in-house specialist from Sourcewell at no additional charge.
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!
