When so much of the business is outsourced, making sure that all the suppliers are aligned to the client’s customer service standards forms an important part of procurement.

Suppliers are measured on a monthly basis through a range of KPIs.

LeasePlan also carries out customer surveys and mystery shopping, rewarding suppliers by awarding them bronze to platinum status.

For suppliers that are new to the business, a more vigorous approach is needed, including obtaining references and carrying out site visits.

Price is key

Forward planning is an important part of being competitive when it comes to pricing.

Dixon and his team will calculate the various costs that make up the total lease price by predicting what the customer will need throughout the life of a vehicle.

Fleet size, mileage, age of vehicles, the company and journey locations all play a part in painting the picture of the fleet’s requirement.

LeasePlan has a system in place which enables customers to get money back at the end of the lease if the predicted cost wasn’t met or if vehicles have travelled fewer miles than budgeted for.

Accident costs will, in most cases, be passed back to the fleet, but damage costs can sometimes be absorbed into the lease costs.

Contracts with suppliers are usually set for two to three years which may coincide with a customer lease.

If prices were to increase at the end of a supplier contract, Dixon and his team have to act quickly to switch to another supplier, or risk losing out on the fixed lease costs for those companies that are mid-cycle.

Dixon is in the early stages with working with a telematics provider. He feels it is now becoming an affordable solution and more widely adopted.

“We want to continue to raise the bar,” he says. “If you’re standing still, you are going backwards.”