For professionals working in public organizations, the fleet procurement process involves a great deal of “hurry up and wait.” Due to supply chain concerns, ordering new vehicles may put you behind millions of other organizations vying for recent models and chassis.
There was more than 4 million vehicles’ worth of demand at the start of 2022, likely putting a squeeze on the model year 2023 and beyond. These numbers are only expected to increase as supply chain delays and inflationary conditions reduce the efficiency of public fleet procurement.
If you’d like to order new vehicles for your fleet without waiting months or even years, you’ll need to reorganize your procurement strategy to align with modern tactics. Learning these techniques is not necessarily complex, but attaching them to your current plan may take time and effort.
Wait times to consider when you purchase fleet vehicles
The public fleet vehicle purchasing process is complex and time consuming. Understanding the wait times and obstacles involved is critical for developing a streamlined, efficient process.
Three major types of delays can affect public fleet vehicle purchasing:
- Delivery delays: Due to supply chain snafus, the average order-to-delivery date for fleet vehicles is up to four times longer than before, skyrocketing from three months to twelve months for some government organizations.
- Bid evaluations: The traditional request for proposal (RFP) process requires regular bid evaluations, which can take up to fifty-seven days in some cases.
- Absent models: Certain vehicles and chassis aren’t always readily available, forcing fleet managers to rely on older vehicles, compromise on specifications, or simply wait until their preferred model becomes available.
It's impossible for public fleet managers to completely eliminate wait times in procurement. However, you can readjust existing strategies so your organization can sufficiently manage surprise delays and unforeseen postponements.
Techniques to help you purchase fleet vehicles without the wait
Your organization needs to implement modern techniques to purchase fleet vehicles without unnecessarily long wait times. Using expert advice based on current research and evidence, you can start implementing three major solutions right now.
Stock up on equipment
If you can't source equipment within a sufficient amount of time, you can at least stock up to prevent lead times from impacting your organization's fleet.
It may be a good idea to order parts early and often to avoid unexpected problems. Additionally, consider storing a backlog of equipment near your facility to ensure that unforeseen issues don't impact your operational ability.
Know your budget
Price is often a major obstacle to the efficient procurement of public fleet vehicles. Unfortunately, cost increases and inflationary conditions have only made its impact more severe.
Shipping costs rose 43% between 2020 and 2021, preventing fleet managers from purchasing vehicles at a better price point. Uncertain economic conditions continue to increase the cost of procurement, affecting leaner public budgets to a greater degree.
To avoid complications associated with rising vehicle costs, consider refurbishing vehicles or finding compromises until you can secure newer models. Be sure to balance your budget alongside your fleet's needs to prevent overstretching your allotted funds.
Fast Track the Traditional RFP
RFPs can take weeks, if not months, to write specifications, collect bids, and select the best supplier. Due to their bloated lead times and potential for bidding wars, thousands of public organizations have moved their attention from the traditional RFP to the cooperative contract.
Switching to a cooperative contract could make more sense for your organization and the people that it serves. You can source vehicles more efficiently, and you can cut your procurement process down from thirty-six months to just four weeks.
If you are a government organization or school, you can start using cooperative contracts immediately with Sourcewell.
The best way to purchase fleet vehicles: Cooperative contracts
Cooperative contracts leverage the buying power of multiple fleets, helping you secure more goods in less time and for a more competitive price. They are among the most popular solutions for public fleet managers, especially when it comes to procuring vehicles in a shorter time frame.
Using cooperative contracts correctly can:
- Help you piggyback on pre-established and competitively solicited contracts
- Let you pick the supplier that you want without having to evaluate bids yourself
- Enable you to access unique chassis, tools, or types of equipment that might otherwise be hard to come by
With Sourcewell, you can browse hundreds of cooperative contracts for public fleet management by becoming a participating agency.
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!
