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Monthly Archives: February 2016

Outsourcing Your Company Car Fleet? Be Mindful of These Unintended Consequences

Outsourcing Your Company Car Fleet? Be Mindful of These Unintended Consequences

A key strategy of many companies is to concentrate on core business activity, or “sticking to their knitting” as my old university lecturer used to say, and it is as relevant today as it was back then (even though “then” was quite a long way back!). As phrases such as cost containment and headcount reduction become more common, many business look to all non-core activities to see where they can put such phrases to work. Company car fleet does not escape the scrutiny of the “non-core police”, as it is increasingly likely to find a company’s car fleet being outsourced to specialist providers.

Although the business case can be very compelling, the ramifications of the outsourcing activity can be less obvious. At Fleetworx we help numerous companies deal with the myriad suppliers that become involved in providing an outsourced fleet; that is our speciality, working client-side to manage and direct the supply chain to deliver the best possible solution. However, what we have learnt over the years is that although the principle of outsourcing is sound, there are a number of unintended consequences that impact the client business.

We have created this whitepaper “The Unintended Consequences of Outsourcing Company Car Fleets: And How to Avoid Them“, to help our clients understand these consequences, how they can impact their business and the strategies we employ to avoid them. We look at specifics such as cost creep – unearthing the truth behind the lease suppliers revenue model and what this means for mid and long term costs. We examine the balance of power over knowledge and insight and look at what can happen when fleet becomes stakeholder-led.

If you have come across any other consequences then we would love to hear about them, drop us a line at grees@fleetworx.com.

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