Strategic considerations for model year fleet vehicle planning
April 05, 2022
As you begin planning for the upcoming ordering cycle, Element remains committed to providing top-quality expertise to help you plan and navigate the process and proactively address anticipated impacts of the continued Original Equipment Manufacturers (OEM) production delays.
Keep your fleet ahead of the pack this model year by investing time in each phase of this six-step process, while remaining agile through fluid supply chain restraints. This method provides the opportunity to positively impact your total cost of ownership, safety, productivity, and environmental footprint for years to come.
Starting early is the key to successful model year planning to gain required buy-in and approvals from stakeholders, especially when considering alternate OEMs. Validate your OEM allocation commitment and order rollover to next model year by building these steps into the model year planning and OEM negotiation sessions as both actions require OEM approval. Element recommends contingency planning upfront, which will cut down decision timing later should you receive a reduced vehicle allocation.
Request offerings from OEMs to match your requirements. Continue negotiating price protection along with incentives and consider negotiating incentives on stock purchases that are sold as “retail” vs. “commercial.” Element helps clients develop vehicle specifications and create an initial total cost evaluation summary.
Review the initial cost evaluation summary to facilitate negotiations with the OEMs. Element updates cost summaries for each round of negotiations so that you can make informed decisions to drive cost out of your fleet.
Review your approval process for stock orders to ensure it is efficient and nimble – time is of the essence in the current ordering environment.
After finalizing fleet vehicle specifications, submit orders and track ordering behavior so you can determine driver preferences and usage.
Approval for cancelled orders goes through the fleet manager who may be able to reassign the order to a different division having trouble finding units.
Work with Element to perform a final analysis, evaluate order scenarios and cost impact.
After the fleet vehicle ordering has taken place and drivers are using the vehicles, identify best practices and opportunities for improvement, survey participants, and create a plan for the following model year.
A fleet partner like Element can help you navigate and build a successful plan. This six-stage process will help you develop a fleet program that provides value to your company now and in the future.
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