Outsourcing for the Ultimate in Added Value
Throughout the last year, we’ve examined some of the many ways to get more value from your global fleet, going beyond just targeting short-term discounts.
In the final post in this series, we look at how outsourcing fleet management could offer the ultimate added value – taking a complex process on a global scale off your hands and offloading it to a specialist partner.
Why outsource fleet management?
Your fleet is a vital part of your business, but it’s just one cog in the machine – it’s not what you’re all about.
Very few companies see fleet management as one of their core competencies, which is why outsourcing can make a lot of sense, freeing you to focus on your core business and removing a whole world of management headaches.
And outsourcing doesn’t have to be all-or-nothing. From complete management for a large international fleet to simply offloading specific fleet-related processes, outsourcing can deliver compelling business value at any scale.
Less complexity, less cost
The potential cost savings from outsourcing can be significant. Let’s say a company has a fleet of 1,200 vehicles in three countries. By outsourcing key local fleet management processes, the business could save an estimated €119,900 a year in staffing costs.
Reducing costs and management complexity sounds great in theory, but how do you ensure you choose the right provider and get the maximum possible value from outsourcing?
The three critical factors for high-value outsourcing
At LeasePlan, all our experience shows that there are three things every company – and its provider – need to get right if outsourcing is going to deliver the expected benefits:
1: Centralised approach
Central visibility and control is absolutely critical to successful outsourcing. If different countries are going about things in different ways (and not telling each other what they’re doing) you’ll never get those efficiencies you’re looking for.
Strong, central leadership, transparent communication and a harmonised approach between all countries are essential to ensure everyone’s pulling in the same direction. Effective Service Level Agreements with your supplier are also a vital enabler of success.
2: Strong mandate
Your outsourcing partner can only be effective if they have a strong mandate towards all your local entities.
Outsourcing is about trust – after all, you’re handing over the keys to a vital part of your business. You’ll need to be willing to let your provider take responsibility for a number of important operational decisions, at both a global and a local level.
3: Change management programme
Outsourcing fleet management will be a big change to the way things are done right now, so a robust change management programme must be in place from the start.
Make sure you get the right specialists involved, both from your company and from your supplier to draw up a clear timeline for transferring fleet management activities. That way, it will be much faster and simpler to get the high-quality service – and the cost savings – you’re looking for.
Squeeze more value from your global fleet
Outsourcing is a great way to realise significant value from your fleet, but as we’ve seen in our previous blogs, even if you choose to keep management in house, there’s still a lot of scope for increasing the value your global fleet brings to the business.
Take a look back at the previous posts in this series to find more ways to reduce the costs and environmental impact of your fleet – and start using it to build real competitive advantage.
Check out the previous blogs in the series:
8 Ways to Improve the Value of your Global Fleet Management
How Insight Drives Global Fleet Management Value
Turning Insights into Action for Maximum Fleet Value
How Bigger Fleet Buyers get Better Value
Building Value through Effective Supplier Relations
Driving Value with Improved Driver Behaviour
Meeting CSR Objectives with Fleet Management
Realising the Value of Fleet Telematics