Understanding the players within the fleet vehicle supply chain
March 07, 2024
Your fleet vehicles play an integral role in your business which is why you do your part to proactively plan for fleet ordering needs, factoring in macroeconomic trends, resale of aging vehicles, redistribution of vehicles throughout your fleet and potential supply chain impacts. Based on these factors, you carefully select vehicles tailored to meet your specific fleet requirements, but have you ever stopped to really consider the intricate process between order confirmation and vehicle delivery?
Fleet vehicles' journey from order to delivery
The fleet vehicle supply chain is an interconnected network that encompasses a multitude of stages, each contributing to the seamless build-out and movement of vehicles from their initial production at an original equipment manufacturer (OEM) to their final delivery at a fleet driver's home or centralized location.
The unique journey of a vehicle through the fleet supply chain is a synergetic process that happens largely behind the scenes with key updates to keep you informed along the way. The journey includes:
- Parts manufacturing and vehicle assembly
It begins with the manufacturing of vehicles at the factory, where skilled workers assemble OEM parts to build the vehicle. For fleet vehicle orders, the build specifications indicated in your order are included during the assembly stage. - Safety and quality checks
Before the fully built vehicle leaves the OEM, it goes through a comprehensive series of safety and quality checks. These checks encompass evaluation of various components, systems, and functionalities to ensure that the vehicle meets the highest standards of safety, performance, and reliability. Each aspect is carefully inspected, including braking systems, electrical components, emissions controls, structural integrity, and overall vehicle functionality. These thorough checks are conducted to guarantee that the vehicle is compliant with all applicable regulations and ready to deliver a safe and satisfying driving experience. - Upfitting
Once the vehicles are assembled, some vehicles undergo upfitting which involves customizing the vehicles to align with the unique needs and requirements of each fleet. From installing specialized equipment, making interior and exterior modifications to applying branding decals, upfitting ensures that every vehicle in your fleet is flawlessly tailored to meet the specific operations and demands of your business. The vehicles make their way to a third-party upfitter location in one of three ways:-
Delivered to the upfitter via OEM traffic,
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Facilitated by the delivering dealer, or
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By an on road upfit vendor after delivery to the driver.
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- Transportation
Transportation methods vary, ranging from road transport using specially designed carriers to rail or sea freight for longer distances. Once the vehicles are ready for distribution, they are transported to regional distribution centers strategically located across different geographical areas. These centers act as hubs, where vehicles are temporarily stored and prepared for onward transportation. From the distribution centers, the vehicles are dispatched to their final destinations, which could be a:-
Driver's home,
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Fleet depot, or
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Dealership to complete delivery.
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- Delivery
Upon arrival at the designated location, the vehicles go through a final inspection and necessary paperwork, such as registration or licensing, is also completed during this stage. Finally, the keys to the vehicles are delivered to the drivers or fleet managers, marking the successful completion of their journey through the fleet supply chain.
Fleet management role in the supply chain
From the fleet managers who coordinate vehicle orders with OEMs, upfitters, and dealers to ensure the smooth delivery, to the transporters likely driving fleet vehicles to move the vehicles throughout the supply chain, fleets play an integral role in the fleet vehicle supply chain.
Navigating the fleet vehicle supply chain
Understanding the intricacies of the fleet vehicle supply chain is crucial for optimized performance and seamless operations. From parts acquisition to vehicle delivery, each stage plays a significant role in the overall process. Despite challenges posed by supply chain shortages and delays, leveraging Element Fleet Management's team of Strategic Fleet Advisors can help businesses effectively navigate supply chain complexities and effective ordering strategies. Contact us today.
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