Perhaps the biggest obstacle to the modern fleet procurement manager is the supply chain itself. In 2021, more than 11,642 supply chain disruptions were recorded globally, with the highest share affecting North America.
Although the state of the supply chain is largely outside the average fleet manager's control, there are strategies that can help you navigate the process effectively. Leveraging these and the right tools can position your organization to survive unexpected disruptions, securing and procuring fleet vehicles within a suitable time frame.
Here are supply chain tactics for fleet procurement that you can use.
The biggest supply chain challenges in public fleet procurement
Amid rising costs and changing expectations, the supply chain remains a fickle and ever-changing factor in public procurement. Recent surveys suggest five major roadblocks, each with a different effect on fleet vehicle management:
- Continuous disruptions (57%): Ongoing disruptions affect nearly three in five supply chain professionals, preventing the streamlined acquisition of goods.
- Hiring and retaining great talent (54%): It may be difficult for organizations to attract talented team members to serve on procurement teams.
- Demands for faster responses (51%): Today's public audiences require faster responses to their needs, putting pressure on fleet procurement officers and their stakeholders.
- Running out of stock (48%): Changes in the supply chain lower the availability of certain machinery, forcing procurement professionals to reevaluate their options.
- Forecasting timelines (46%): It can be challenging for procurement officers to know when their vehicles, parts, or equipment may arrive.
The global supply chain will always be a fluctuant and hard-to-control element of fleet procurement. To surmount these continued challenges, fleet professionals are encouraged to use the following procurement tactics.
Recommended supply chain tactics for fleet procurement officials
Whether you work for a government body or serve a K-12 school, here are expert tips to effectively manage supply chain challenges.
1. Better recordkeeping
Organization can make or break your supply chain procurement process. After all, understanding where your important documents are (and where to find them) can be a huge boon in the acquisition of public vehicles. Not only can you revisit your documentation at any time, but you can also better predict your equipment needs and time the supply chain effectively.
It may be best to store all your files in a single, organized place. Be sure to opt for a location that can be easily accessed, or consider a digital platform with e-procurement software.
2. More visibility
Many fleet managers lack the bandwidth to personally monitor their vehicles. It may be difficult for them to know exactly how their vehicles are performing or how certain drivers are impacting overall costs.
Nevertheless, it's essential to keep a close watch on fleet management metrics for your organization, especially vehicle lifetime costs, fuel and maintenance prices, and driver routes. The more you know about your vehicles, the faster you can estimate replacement or upgrade times, helping you get and stay ahead of the supply chain curve.
You don't need to carve out more time from your day to monitor vehicles yourself, though. Integrating with telematics is a great solution to this, as well as GPS programs and other tracking software.
3. Sourcing suppliers
Suppliers are a powerful hedge against supply chain disruptions. While they cannot change the circumstances of a downgraded market, they can offer insights and solutions that serve your organization well.
Rather than relying on one or two suppliers for all your procured goods, it may be wise to expand your partnerships quickly, simply, and cost effectively. Cooperative contracts are perhaps the most effective way of doing this at scale, a powerful solution that works to abate risks.
Supply chain tactics for fleet procurement start with cooperative contracts
It’s impossible to completely avoid the pitfalls of the modern supply chain, but using cooperative contracts can help you remain agile, effective, and generally risk averse.
In fact, they can help you enact each of the aforementioned tactics with:
- Better recordkeeping: You can browse hundreds of cooperative contracts in the fleet procurement industry without having to write an RFP on your own.
- More visibility: Detailed information about your cooperative contract is always available online, meaning you can make informed decisions about your options quickly and confidently.
- Sourcing suppliers: Rather than navigating the bidding process on your own, you can choose from competitively solicited suppliers and request more information online.
You can register your organization with Sourcewell today and take advantage of these cooperative contract benefits for free.
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!
