Overview of the Fleet Management Industry
Fleet management enables enterprises to track and maintain their vehicles in a quick, cost-effective, and accessible way. It typically involves functions such as vehicle tracking and diagnostics, and financing, driver management.
The primary growth driver of the global fleet management industry is the increase in demand for transport and logistics. Fleet management firms offer several benefits such as enhancement in vehicle performance, maintenance planning, and scheduling of fleet routing, which enhances the fleet safety and also customer satisfaction. The other major factor driving fleet management industry is the need for organizations to streamline their operations for greater connectivity and reduce the hardware cost needed to perform the necessary fleet management. Furthermore, recent innovations like smart transportation solutions and connected vehicles will drive the market for fleet management solutions.
However, certain factors are restricting the growth of the fleet management firms. Some of the factors include:
- Cost-reduction initiatives: The pressure to reduce costs typically comes from the top of the business hierarchy and is applicable to every department in the organization. When this responsibility falls on the shoulders of the fleet manager, the individual is faced with numerous variables in budgeting and forecasting.
- Fuel price volatility: One of the major factors in the effectiveness of any cost-reduction strategy for fleet management firms is the volatility of fuel prices. Fuel prices are difficult to estimate, and as a result, difficult to budget. Therefore, creating a compelling cost-management strategy, then successfully executing it as planned, has become incredibly difficult for fleet management firms.
Many such factors are compelling firms in the fleet management space to leverage the use of supply management and supplier profiling solutions. Supply management and supplier profiling solutions help firms profile the most appropriate suppliers and reduce risks associated with production delays and ensure consistency in their service offerings.
The Business Challenge and Journey
Client background: A leading fleet management firm with business units spread across the globe wanted to better understand the latest industry trends and identify the key suppliers.
Client issue: The client wanted to keep track of the supply management performance and identify the strengths and weaknesses of their suppliers. Additionally, the client wanted to profile the most appropriate suppliers to reduce the time-to-market for their service offerings.
SpendEdge’s supplier profiling experts followed a scrupulous research methodology and carried out discussions with prominent stakeholders in the fleet management industry to help the client boost supply management and identify key competitors. The experts also compiled information from a wide array of proprietary sources such as paid industry databases, company presentations, and industry forums.
Client journey: During the course of this supply management and supplier profiling engagement, the fleet management client profiled the most appropriate suppliers to reduce procurement costs and excess inventory costs. The client was able to maintain a customer-focused business to deliver the desired service quality to the customers.
Key questions answered in this supplier profiling engagement
With the help of SpendEdge’s supply management and supplier profiling solution, the fleet management firm was able to proficiently manage their supplier database and segment suppliers based on their criticality. This helped them minimize maverick spend.