The procurement timeline for certified public fleet professionals (CPFP) is continuously evolving, especially within US public agencies. Today, 94.4% of fleet managers in the UK have experienced delays ordering new trucks or vans—a revealing omen for American CPFPs.
Many public procurement experts feel stuck or frustrated with their current fleet vehicle processes, especially as they navigate tight deadlines and even tighter budgets. But the status quo is rapidly changing. Hundreds of organizations have managed to expedite their public procurement process for fleet vehicles, ultimately saving more time and money while serving their various audiences.
Getting started with a streamlined procurement process is relatively straightforward. However, to understand the existing procurement timeline and troubleshoot pathways for expediting it, let’s cover a few steps.
Changing procurement process steps for public fleet managers
The traditional RFP process for public fleet managers is beginning to change. New expectations and guidelines are reshaping expectations and stretching out the timeline.
- Sourcing EVs or AFVs for your fleet. Government organizations are increasingly interested in sustainable energy, including electric vehicles and alternative fuels. Pending legislation calls for most organizations to procure EVs and AFVs by 2035. This means agencies must acquire an additional 30,000 vehicles each year to keep up with future demands, which could create a further efficiency slowdown, with impacts lasting up to three years.
- Operating on leaner budgets. Recessionary and inflationary costs continue to shape public budgets, often resulting in a zero-growth environment. The consumer price index alone jumped 0.5% in January 2023, which was five times greater than in previous months (November to December). Therefore, organizations may need to wait multiple years to stock up on a vehicle or ask for a budget expansion to accommodate rising costs. The additional time cost of this process could range from one to two years.
- Waiting on availability. Post-pandemic vehicle production shrank by 16% in 2020, and the industry is still recovering. Certain fleet vehicles may not be available to public agencies, while function-specific fleets, like school buses, may be difficult to source at cost-effective prices. This leads to an additional time cost of ten to twelve months, depending on vehicle type, size, or design.
It's clear that the public procurement timeline faces an enormous number of obstacles. At a minimum, public agencies face a fifty-eight-month slowdown when acquiring new fleet vehicles. For your organization to remain agile and compliant, you need to explore emerging trends that expedite the procurement process.
Emerging trends used to expedite procurement process steps
To get around the extended timelines caused by changing circumstances, fleet leaders are urged to invest in tools that can recreate existing procurement process steps.
Increasing cost predictability with software
Price-tracking software (including e-procurement solutions) can provide a more accurate estimate of fleet vehicle costs. Fleet managers can better anticipate budget needs, ultimately speeding up order-to-delivery (OTD) timelines. Processes that once took hours to complete could be digitally managed within minutes, with additional solutions available to automate routine tasks.
Prioritizing fleet procurement with re-budgeting
It may be difficult for public procurement officers to ask for additional funds. However, it may be possible to reallocate specific line items and reprioritize the fleet procurement process. You can remain abreast of changing inflation rates and avoid unnecessary downturns or the need for budgetary hoarding.
Looking for long-term solutions with partnerships
Building recurring relationships with suppliers can be profitable to public organizations. Fleet managers may be able to lower certain costs or prioritize goods ahead of other agencies. Also, amid supply chain concerns or unforeseen obstacles, you can work with your supplier to find solutions.
Implementing each of these tips can help you expedite the public procurement process. However, you don't need to integrate them separately—all three are possible with the help of cooperative contracts.
How to implement cooperative contracts into existing procurement process steps
Cooperative contracts are purchasing agreements on behalf of numerous agencies that can reduce the cost of acquisition. Multiple agencies enter into an agreement to save time, money, and effort and improve their OTD through a better fleet procurement process.
Cooperative purchasing agreements can be implemented into any workflow with three simple steps:
- Register for Sourcewell. The entire process should only take a few minutes.
- Browse hundreds of contracts. You can use unique filters and search functions to narrow your search for the right supplier.
- Contact the supplier. You can receive a quote for the contract and ask any questions before pressing forward.
Any school or government organization in the US is welcome to explore Sourcewell's cooperative contracts. If you’re not sure where to get started or have questions before proceeding, Sourcewell's trained industry experts are available at no extra cost.
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!
