Within existing fleets, cost reduction is typically on the board agenda.
Amongst other techniques, a tender review can be the answer.
An OEM and LeaseCo tender review can often lead to significant savings and done properly can be a better way to maintain the status quo for your drivers and people responsible for fleet.
Here are a few considerations for a successful tender review:
1. Understand your steering committee needs and find a fleet sponsor
It is the steering committee who based on good advice and guidance, approve policy changes. So, it is essential to gain their support and understand their key drivers. Once this is known, you’ll be able to set KPIs and produce what the RFP should contain.
2. Know who else is involved
You may have a handle on your expectations and that of the board / steering committee. How well do you know the expectations of Finance, Human Resources or another departments with a stake in fleet. Having them on board from the start is essential.
3. Understand the current situation
Any project should start with the ‘as is’ situation and set ‘SMART‘ objectives. You will need to understand your true fleet data and all agreements either local or global with all OEM’s and Leasing Companies. The initial benchmarking exercise can take a few months and is the foundation work for the future success of the tender review.
Think about the supply chain. Insurance is a key part of fleet costs and often overlooked.
Suggested reading: 10 year insurance analysis
4. Be clear as to what you want to achieve from a tender review
You may think that this is straight forward. It can be, but it is essential to document and share the goals with all sponsors to ensure they are known, understood and are achievable. It is essential to get full transparency in your current fleet and fleet process set-up to understand the savings potential and set smart objectives.
Some questions to consider:
- Do you require quantified cost savings?
- Do you want to consolidate your OEM’s and Leasing Companies?
- Do you want to standard fleet policy across countries?
- Do you want a fleet scan to ascertain if your fleet is still fit for purpose?
- Are you looking to harness your buying power?
Knowing where you are now is essential – but can the objectives be achieved?
5. Ensure the data makes sense and look for transparency
Information gathering can be a daunting task. Never mind the actual implementation. After requesting and gathering data from OEMs and Leasing Companies, you then need to prepare the roadmap for the next phase. Your goals and KPI’s need to be prepared and presented for all sponsors. Once data is collated from your current suppliers, the next phase is to ensure that you have full transparency of data that will help define the future objectives.
We often hear about and see examples of data gathering where key facts are not disclosed or are difficult to interpret. This is where are independence helps and is instrumental in truly benchmarking your fleet. We know the questions to ask to gather the answers you deserve.
6. The administration aspect
Any project and in particular a tender review requires a great deal of internal and external organisation. Bi-weekly or weekly meetings and reviews are a pre-requisite that will help to ensure a successful outcome. Aim to communicate at every key stage of the project and ensure everyone is kept in the loop. All expectations need to be met and any changes along this journey which will enviably happen should not be a surprise.
Suggested reading: Transparency in Business
7. The suppler meetings
This is where our skills in the negotiation in supplier meetings can really add the value you need. We know how the different elements of TCO interact and how suppliers are organised on a local or global level. We know what is feasible and what’s not and can assist in the realisation of your objectives.
