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Your fleet acquisition process can make all the difference in helping you cut costs, boost performance, and stay ahead of the competition. Once you factor in all aspects that influence an effective acquisition strategy, you can take the steps needed to drive success.
Proactive measures will simplify your end-to-end fleet acquisition process, minimize the effect of any shocks or stress in the marketplace, and maximize your fleet value.
Fleet acquisition is the strategic procurement of the right vehicles and services that gives you significant cost savings and efficiency. This involves selecting the right make and model for the job, negotiating favorable terms, and ensuring timely delivery to avoid extra expenses.
You may need to account for a 10-month cycle from decision to delivery.
Get vehicles specified with everything you need and nothing you don’t. Stock ordering forces you to acquire a vehicle that’s already built, which could have unnecessary costly features or a trim level above what is needed. Apply for rebates and avoid stock fees that come with high dealer markups.
When you plan and negotiate in advance you avoid buying stock at the last minute, which can cost up to $5,000 more per unit – during the pandemic this number reached up to $15,000.
Consideration Points | Factory Order | Stock Order |
|---|---|---|
Pre-approved fleet specs. ensuring compliance with clients approved vehicle specs | Retail specs, More variation | |
Driver level ordering with standard profile controls and limited options for drivers based on client policy | ||
Ability to plan and forecast for business needs | ||
Number of vehicles being ordered | Great than 2 | Less than 2 |
Upfitting required | Field upfitting possible but costly & greater variability | |
Exotic delivery location or regulatory requirements* | Transport cost can be expensive | |
Pricing controls | Can cost on average $2-5K more than a factory order dependent on make & model | |
Emergency or unplanned needs | ||
OEMs not supported for facotry ordering |
*(Hawaii, Puerto Rico, Alaska, Northern parts of provinces, Nova Scotia, California emissions regulations)
Reduce your fleet maintenance and fuel costs when older vehicles are replaced on time. New vehicles are more fuel efficient and maintenance costs become too high when you let vehicles go past the point of their optimal vehicle replacement timeline.
When the right vehicles are cycled out at the right time, your fleet becomes highly productive. That means you will improve vehicle availability because the newer vehicles won’t need downtime to be repaired. Overall, it will increase your operational efficiency.
Newer vehicles typically have the latest technology and come with more standardized advanced safety features. This promotes better driver behavior and helps reduce accidents. Driver experience plays an important role in fleet management as happy drivers lead to higher driver retention. Newer vehicles help achieve higher driver satisfaction as they are cleaner, break down less and have better features.
With a proactive strategy in place, your budget forecasts are more accurate because you’re taking the time to think about every expense that could be added to your process.
When clear timelines and cost expectations are set in advance, you avoid unexpected expenses for last-minute purchases.
With an acquisition strategy in place, you’re better prepared to deal with any supply chain disruptions due to unpredictable events like strikes, weather, elections, political conflicts or pandemics. It also makes your fleet more resilient against market volatility because advanced planning gives you more options.
Newer vehicles are more fuel efficient, bringing you one step closer to lowering your greenhouse gas (GHG) impact.
With lowered fleet emissions, you’ll be working towards reaching government targets for compliance.
Another strategy is to take the savings from a lowered fuel budget and put that towards transitioning a part of your fleet over to EVs or hybrid vehicles.
OEMs plan to roll out new electric models on the market each year into 2030, featuring better batteries for longer trips and faster charging.
There's increasing demand for electric fleet vehicles, including vans, pick-ups, and bigger trucks, not just cars and SUVs. There will be more electric choices available, like vehicles that are partially or fully electric, and medium-heavy duty vehicles that use cleaner fuels like biodiesel.
To build a successful fleet acquisition strategy, focus on these key factors:
Fleet demand forecasting The foundation of any acquisition strategy looks at past data and market indicators to predict when the demand for fleet inventory will peak. This will help you decide the quantity and types of vehicles needed, avoiding both shortages and excess inventory.
Supplier relationships Establish strong relationships with reliable suppliers. Engage in regular communication and negotiate long-term contracts where possible.
Total cost of ownership (TCO) analysis of your fleet Conduct a TCO analysis to help select vehicles that offer the best value over their lifespan, rather than just the lowest upfront cost.
Fleet vehicle selection and specification It is important to:
Procurement processes and policies Develop clear acquisition processes and policies to streamline your operations.
Creating a comprehensive fleet acquisition strategy involves several steps:
Assess your current fleet and set goals
Conduct a needs analysis Calculate the optimal number and type of fleet vehicles needed in the coming year. It is key to first define what the minimum requirements are for a vehicle to perform the job.
Develop a procurement plan
Evaluate and select fleet vehicle suppliers
Implement your acquisition strategy
Track your fleet orders with technology
Review and optimize your fleet strategy
Once you’ve replaced your older assets, planning the best way to dispose of them is your next step. We can help you remarket your vehicles to gain the highest price in the shortest amount of time.
Due to the evolution of the industry, fleet acquisition can be a daunting task. We can help you overcome the following:
Regulatory compliance: Changes in regulations and standards require constant attention.
Keeping up with constant changes in specs and new vehicle options.
Finding replacements for vehicles getting phased out of production.
Supply chain disruptions.
Fleet acquisition is more than just buying vehicles—it's about creating a strategy that enhances your overall operations.
Managing your fleet effectively demands careful planning and budgeting. Strategic sourcing will help prevent the extra costs that can stack up from last-minute purchases.
Meet your current operational needs and align with your future business goals, ensuring your fleet is balanced and runs smoothly.
Advanced analytics: Cutting-edge data that forecasts demand, improves TCO, and selects the best vehicles for your fleet.
Supplier management: Favorable terms and faster delivery times because of our strong relationships with leading suppliers.
Ongoing support: Guidance to help achieve your fleet goals from the first stages to final delivery of your vehicles and beyond.
Trusted experts: Personalized advice tailored to your needs from our proactive advisors.
Ready to transform your fleet acquisition strategy? Get started today.