From the news or just a shopping trip, it’s all too obvious what impact the current economic climate is having on business generally, but how does this apply to the fleet market?
Suppliers – and a healthy partnership with them – will be key to a successful 2009. Whether you’re looking for a vehicle supplier, a maintenance provider or even a software supplier, the wrong choice can lead to short-term disruption to your business and long-term potentially severe financial repercussions.
Think back to the Rover collapse and the effect on residuals and maintenance for these vehicles. In the current climate, suppliers of all types are under severe financial pressure, with some household names including dealers and manufacturers seeking assistance to prevent collapse.
We recommend you treat your relationship with a supplier as a partnership. Avoid suppliers who are only interested in the short-term. Only if they demonstrate a long-term strategic approach should you consider them – this, after all, clearly demonstrates that their corporate strategy is based around longevity rather than averting immediate financial calamity.
In areas such as leasing, use a panel of suppliers and avoid putting all your eggs in one basket. This will give you a variety of costs and services to benchmark against each other.
With software, avoid suppliers who insist on large upfront payments. Such suppliers may not be around to service the solution you purchase and if they have a long-term strategic view, ‘software as a service’ should be equally beneficial to both customer and supplier.
Partnerships are important. If you are interested in joining our mycompanyfleet partner programme contact us for details.
