Mar 13, 2017

Rightsourcing not just Outsourcing

How to ‘Rightsource’ your service partner

In a recent review, FleetVision reviewed the current supplier market for fleet management service providers in Europe. There is not “the” one-size-fits all solution.

In a recent review, FleetVision reviewed the current supplier market for fleet management service providers in Europe. There is not “the” one-size-fits all solution.

Overall, it is FleetVision’s underlying approach to “rightsource” the service partner, which supports the execution of our client’s daily operations and overall fleet strategy. Since ‘sweet spots’ between providers are diverse, it needs a thoughtful selection process about the best fit towards strategic items such as sourcing concept, funding patterns, process complexity, invoice handling, cost control capabilities, market coverage and supplier network management. From a general perspective, decisions between the engagement of an operational fleet “administrator” and a provider with true fleet “management” capabilities need to be defined.

Tendering for fleet management means rightsourcing a qualitative process not just a quantitative management fee. This implies a double focus, where the financial competitiveness plays one part and the process capabilities and service quality plays the other. With the qualitative focus, the complexity of the sourcing process increases, since non tangible capabilities need to be evaluated and compared. For this purpose, FleetVision has developed a specific decision matrix, which is applied through the RFP phase. Supplier presentation meetings help build an objective basis for an enhanced decision process for our client project teams.

Additionally, a clear service specification of the requirements is vital for the RFP process. Based on FleetVision’s experience, we support our clients to help “translate” the fleet management process into a clear service specification by using the suppliers “language” along typical service components. Only a precise outline of key elements in detail will allow a qualified comparison of the proposals both qualitatively and quantitatively.

Clear SLAs with an outstanding set of KPIs were negotiated and agreed, which enables our client to measure objectively agreed service levels along strong performance indicators. This provides a strong case for a sustainable supplier management program and filters potential noise out of the sales cycle. These key values are embedded in every engagement on behalf of our customers.