Fleet News

Fleets warned over contract tendering

THOUSANDS of fleet decision-makers who go out to tender could be choosing the wrong supplier because they are asking the wrong questions.

Tender documents that contain unspecific or irrelevant questions can do more harm than good in choosing the best supplier for a fleet, warns specialist independent vehicle fleet consultancy Fleet Logistics.

Graham Rees, business development director for the firm, said: 'When preparing tenders, some companies ask immeasurable questions. The leasing industry jumps through hoops answering these questions, but they are pointless, because they provide no way of comparing suppliers, or showing the benefits of their service.

'Often after a long tendering process, it comes down to a gut-feeling on who is better, rather than the evidence in the tender, so from the start, the fleet is accepting compromises.'

By providing a tender document with tangible answers that can be benchmarked and scored, covering issues such as rates, service delivery and maintenance costs, fleets can have a much clearer picture on the best supplier for them. Through effective tendering, Fleet Logistics claims it can save clients on average between 10% and 15% of their fleet costs. Once a contract has been awarded, however, fleet decision makers must keep a tight rein on costs, the firm warned.

For one 2,000 vehicle fleet, Fleet Logistics identified £40,000 per month of invoicing errors.

Rees said: 'Many of the errors were corrected, but there was never any attempt by the supplier to explain why these errors kept being made and do something to stop them.'

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