When we buy in bulk, we expect to get more attractive terms.
So how can Global Fleet Managers take advantage of greater spending power without ramping up the size of their fleet? we will look at how to improve your purchasing power – without breaking your budget.
A proportionate saving in costs gained by an increased level of purchasing is a known fact, we all are familiar with economies of scale in one way or another. Whether it’s sourcing large volumes of stock and resources for your business, or just paying a lower cost per 100 grams by buying a bigger box of cereal at the supermarket, we understand that a bigger purchase can warrant a sharper price.
Businesses have always wanted to sell as much as possible in all times, and those willing to buy in the biggest quantities could always expect to negotiate the best terms.
But what does this all mean for Fleet Managers? Well, when it comes to sourcing vehicles and other fleet solutions, it pays to have more spending power behind you.
Understanding that spending more can help you save more is all well and fine, but what can you actually do about it? It’s not like you can magically create more budget or improve your buying power overnight. But what you can do is get someone with that power and scale on your side.
Purchasing with other fleet owners will make you a bigger buyer hence you will have better negotiating power in your hand, sellers will have to come down at your terms, we have seen families with separate business entities buying together for better deals, partnering in buying is always a boon to fleet owners, whether it is an asset or maintenance parts for fleet, we have also witnessed people taking better decisions together.
Over years of operating and sourcing fleet solutions, your partners will have built up powerful relationships with manufacturers and a wide range of service providers. These relationships can be a great asset in negotiating attractive conditions – and ultimately, greater fleet value – that you otherwise wouldn’t have been able to take advantage of on your own.
With the help of the right partner, you can gain all of the benefits of buying at scale – and turn that experience into a repeatable and measurable savings program.
Leveraging from scale is just one of the 8 sources of Global Fleet Management value, and we’ll be exploring a different one in each of our new blogs.
We hope you’ll enjoy reading more about them over the coming weeks. Register to the blog now and make sure you don’t miss a post.