Strategic Sourcing Case Study - Fleet Management
Following a period of rapid growth, a global company engaged Source One’s Fleet Category Management experts for strategic sourcing help. The strategic sourcing goal was to centralize and optimize the management of their current fleet while increasing reliability of fleet records and protecting the overall investment on all vehicles. For this company, the current state of fleet management was seen as reactive due to limited resources, tools, and alignment with field operations. Looking at long-term business goals, the company’s Executive Leadership charged the Procurement organization with getting the Fleet Category Spend under management. The client trusted Source One’s fleet category subject matter experts to help them partner with the right Fleet Management Provider.
After identifying the long-list of Fleet Management suppliers based on service offerings and responsiveness, Source One invited the participating companies to pre-scoping meetings. Next, Source One’s Fleet Management sourcing team prepared and coordinated the review of the comprehensive RFP package to ensure all requirements were met (HR, Risk, Operations and AP/Finance departments). Once RFPs were submitted, the fleet management companies were evaluated and scored qualitatively and quantitatively, to ensure proper alignment and compliance with internal fleet requirements, as well as pricing competitiveness.
After narrowing the fleet management supplier pool based on RFP response, Source One’s strategic sourcing experts then had each supplier present a full business case inclusive of Total Cost of Ownership and Return on Investment, Guarantees and Incentives, and Value-Adds.
Based on its thorough understanding of the company’s requirements, Source One’s fleet management team managed the response analysis. The leading Fleet Management finalist addressed all requirements – including recommendations, an actionable plan, and a clear transition timeline based on milestones. Their business case was tailored specifically to the client’s fleet needs, current status, and desired objectives. Additionally, they were the only company whose initial recommendation included moving to a centralized fleet structure and a customized project plan – with the value proposition based on consulting and managing all aspects of fleet.
Leading the negotiations process, Source One’s fleet management sourcing team secured the agreement with the most qualified supplier and produced 13% annualized savings for the fleet management program, with significant value-adds.
Does your company need help completing a Fleet Management strategic sourcing project? Contact our category management experts today to get started.