The Relationship Spectrum by Adam Robinson on Prezi
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Too often, the simplistic view holds that procurement merely sends out bids to suppliers and chooses the cheapest source for a product or service. Procurement professionals will respond, rightfully, that there are many other considerations involved, and that they can bring their expertise to the fleet sourcing process with beneficial results.
It sounds like a simple question with a simple answer — procurement or purchasing is just the process of buying things. But, from a procurement professional, you might get a more detailed definition: Procurement is the purchase of goods or services of the correct quality, the appropriate quantity, at the required time, from the best supplier, with the optimum terms, generally with some kind of contractual obligation.
Indeed, if you look at the above criteria carefully, there is not one part of the definition that is incompatible with fleet sourcing. Fleet managers, when looking for suppliers, go through all of these steps.
More recently, the concept of strategic sourcing came into vogue, and it, too, has been applied to the fleet management process — and often misunderstood. It is something that takes procurement to another level, that of working to establish categories of company spend, and leveraging that spend to obtain more favorable terms and pricing; and developing strategic relationships with suppliers toward new business opportunities and technological advances.
Many fleet managers have been approached by strategic sourcing, looking for spend that can be applied to a larger category of expense and leveraged into better agreements the most popular fleet spend in this case is fuel.
How to Survive and Thrive in a Procurement Environment - Leasing - Fleet Financials
If the fleet manager handles the situation properly, such fears are unfounded. Developing Relationships Any good manager knows relationships must be developed with those who have, or may have, a stake in what they do.
Fleet managers are no exception. First and foremost, fleet managers must ensure that management, from immediate supervisors to the most senior levels, knows them, understands what they do and why, and will defer to and support their expertise. Any function within the company that touches the fleet directly is important to the fleet manager.
So, where does procurement or sourcing fit into the relationship matrix? The depth and form of the relationships will, of course, vary, depending on how close the other party is to the management of the company fleet. At the same time, direct stakeholders expect to be involved in the decision-making process; sales, for example, wants to know what vehicles are chosen; and risk management needs to know how accidents are categorized.
Fleet management requires certain specific skills, which include understanding vehicle systems, basic finance and accounting, the ability to communicate across a wide spectrum of functions and levels, and the ability to take mounds of detailed data and summarize it for others.
But, just as fleet managers need these and other skills, so, too, do procurement professionals need skills and experience specific to success, which include: Negotiating skills are part and parcel of the procurement function. Contracts can be simple or complex and procurement pros must have an understanding of the legal aspects of the contract they are negotiating.
Procurement often occurs in a supply chain environment, and procurement pros need to know how to manage risk within the supply chain. Because procurement occurs across the full spectrum of company functions, procurement must be able to absorb the basics of whatever specific function it is dealing with, quickly and thoroughly.
Managing Purchasing and Supply Relationships
Communicating effectively with suppliers, legal, company functions in this case, fleetand management is a critical skill. There are many more, of course, and fleet managers must take notice — and be honest with themselves about what skills they lack.
The relationship-building process involves not only personal contact, but learning what procurement can do for them, and vice versa. Ask them to do the same for you.
We make sure that driver productivity is high and vehicle costs are low. Van fleets When it comes to van fleets, ARI has the expertise and skill to assist customers every step of the way. Our specialists support you in selecting, equipping and procuring the right vehicles for your needs.
Managing Purchasing and Supply Relationships - ppt video online download
Once the vans reach the end of their service life, our remarketing experts will ensure that you achieve the best possible selling price. Truck Fleets There is nothing easy about managing a fleet of trucks. Our experience, however, qualifies us to successfully manage complex truck fleets.
This ranges from purchasing additional equipment, through to vehicle replacement and remarketing. Our mix of services for trucks and equipment cover the full life cycle and provide support at every stage of the game. This includes maintenance and tire management, fuel management, telematics solutions, certification, accident management, regulatory compliance and payable toll solutions, strategic consulting and much more.
We simplify your daily management and administrative tasks, while minimizing downtime and keeping costs in check.