Car Procurement – What Fleet Owners Should Know Now

Delivery difficulties, bottlenecks, price fluctuations – the procurement sector has been considered the problem child in fleet management since the coronavirus pandemic. What is the current situation? Will fleet managers have to adjust to a wild ride in terms of vehicle procurement and supply chain in the coming months? Our Holman Vehicle Supply Chain expert Stefan Stierl provides insight into his assessment – and tips on what fleet managers should do now.

For years, our customers have been faced with long lead times and bottlenecks that make vehicle procurement challenging. What is the current situation from an expert perspective?

“From our perspective, the worst is behind us – that’s what the market participants, the consumers, and we notice. The delivery situation has generally improved to a stable pre-corona level. There has been a significant improvement, especially in the area of electric vehicles. But of course there are still slight delays. Overall, however, we can say that delivery times across manufacturers are back to normal levels. This makes life easier for everyone involved – at least in this regard. But of course, there are still many pitfalls to avoid when it comes to vehicle procurement. This is because typically a wide range of service providers are involved, from the determination of needs to financing and equipment to delivery, over which you have no direct influence. You have to look very closely.”

How should fleet managers act to avoid unpleasant surprises?

“It was and is always important to keep an eye on delivery times in procurement planning, especially when purchasing replacements. Even in a more relaxed situation, it is certainly helpful to start the procurement process a little earlier to be able to react in a timely manner to any disruptions in the supply chain. I don’t think we’ll ever be able to act according to the motto “It’ll be okay” again, as was sometimes the case in the industry before the corona pandemic. To ensure that everything runs smoothly even in the event of disruptions, we advise our customers from analyzing the optimal financing strategy to determining needs and handing over the turnkey vehicle – all from a single source. In the case of commercial vehicles, in addition to procurement, there may also be installations, equipment and decals. You don’t want to have an individual service provider for every handshake.”

What challenges or opportunities does this new situation create for a fleet specialist like Holman?

“At Holman, we face similar procurement challenges as our customers. That’s why we behave the same way we recommend to customers. For example, we inform them in a timely manner about replacement/succession procurement and move order periods forward. We have one advantage as a well-connected fleet manager with a few years of experience in the industry: because we have good contacts with manufacturers, we get some information a little earlier. This allows us to react very quickly and adapt silently to change.”

Do you have a tip for our customers on how they can get some breathing room when it comes to vehicle procurement if things don’t go according to plan?

“We see long-term rental as an opportunity for our customers. By renting vehicles over certain periods at a competitive price, corresponding delivery periods or delays in delivery can be effectively offset. The biggest advantage: replacement mobility can be produced very quickly. However, this requires an appropriate infrastructure. We have that. Through our proven long-term rental partner network, we can always rely on immediately available vehicles and supply our customers with vehicles.”