How Bigger Fleet Buyers get Better Value
When you buy in bulk, you expect to get more attractive terms. So how can Global Fleet Managers take advantage of greater spending power without ramping up the size of their fleet? In the latest post we re-continue our series on the 8 Sources of Global Fleet Management value and we look at how to improve your purchasing power – without breaking your budget.
At the beginning of 2016 we began a series of blog posts aimed at taking our readers on a journey to explore each of the 8 sources of value for global fleet management (an eBook produced by LeasePlan International). Throughout the series we examine exactly what each of the sources mean for fleets around the world, and the bottom-line benefits they help deliver. We began by first looking at the importance of gaining access to relevant fleet and market insights and then we looked at the skills required to turn this data into actionable outcomes that benefit your fleet. Read on to discover more value in the remaining posts in the series.
Bigger really does mean better
We’re all familiar with economies of scale in one way or another. Whether it’s sourcing large volumes of stock and resources for your business, or just paying a lower cost per 100 grams by buying a bigger box of cereal at the supermarket, we understand that a bigger purchase can warrant a sharper price.
It’s certainly not a new concept. Businesses have wanted to sell as much as possible since the dawn of time, and those willing to buy in the biggest quantities could always expect to negotiate the best terms.
But what does this all mean for Global Fleet Managers? Well, when it comes to sourcing vehicles and other fleet solutions, it pays to have more spending power behind you.
Improving your purchasing power with a partner
Understanding that spending more can help you save more is all well and fine, but what can you actually do about it? It’s not like you can magically create more budget or improve your buying power overnight. But what you can do is get someone with that power and scale on your side.
Fleet partners source vehicles for hundreds of companies, enabling them to buy big, save big, and deliver big value. Instead of trying to negotiate your own deals for a handful of vehicles, allowing them to source vehicles for you can help you improve the value you get from your budget.
And it’s not just their scale that you can benefit from.
Because fleet providers have made far more purchases and worked with far more people than a single fleet owner ever would, they have a wealth of purchasing and selection expertise that can help you make the right choices every time.
Your partner’s experience and access to a wealth of knowledge about specific fleet solutions also helps maintain information parity in purchasing situations.
Over years of operating and sourcing fleet solutions, your partner will have built up powerful relationships with manufacturers and a wide range of service providers. These relationships can be a great asset in negotiating attractive conditions – and ultimately, greater fleet value – that you otherwise wouldn’t have been able to take advantage of on your own.
With the help of the right partner, you can gain all of the benefits of buying at scale – and turn that experience into a repeatable and measurable savings program.
Leveraging from scale is just one of the 8 sources of Global Fleet Management value, and we’ll be exploring a different one in each of our new blogs.
We hope you’ll enjoy reading more about them over the coming weeks. Register to the blog now and make sure you don’t miss a post.
And don’t forget to check out the previous blogs in the series: