The fleet procurement

12. Dec 2022

The procurement of vehicles in a modern fleet has become a very complex process. Cost pressure, modern concepts for mobility or e-cars - all points that the fleet manager has to consider in his analysis.

Comprehensive data facilitates the procurement process

The area of fleet procurement, whether company vehicles or commercial vehicles, is one of the most important tasks of the fleet manager, who decides, in consultation with the company management, which vehicles are to be purchased and with what equipment.

The procurement of vehicles is a classic process, like any other type of procurement. The goal of every procurement is,

  • all necessary goods and services
  • in the required quantity and quality
  • in the right place at the right time

to have.

The fleet manager analyzes the fleet's needs, selects suppliers and monitors the order. The basic prerequisite for optimizing the fleet procurement process is good data. The fleet manager needs comprehensive and clear information. Only then can he or she decide whether and which new cars are needed when procuring vehicles.

For example, good fleet management software provides meaningful usage profiles. Which car is driven how often and for how long? Short trips, long trips, when are the peak times? What costs does the car incur in terms of fuel, maintenance or repairs?

Two men in the vehicle
Two men in the vehicle

The tax advantage of leasing is not an argument

Buy or lease?

When it comes to fleet procurement, should you buy or lease the vehicles?

The advantage of buying is that the company becomes the owner of the car. The disadvantage is that buying - cars are expensive - robs the company of liquidity. This money would perhaps be needed elsewhere. Financing, on the other hand, is bad for the equity ratio. With leasing, the company does not acquire ownership, but has the legal position of a lessee. Many leasing companies offer convenient all-round carefree packages with maintenance and wear-and-tear repairs.

The frequent argument that leasing installments can be deducted from tax as a business expense is correct. It is also true that you cannot claim the entire installments for tax purposes in the case of a bank loan. Only the interest portion is taken into account, not the repayment portion. However, the tax office recognizes the depreciation. The company buys the car and spreads the net purchase price over six years. This period is called the normal useful life. The annual reduction in the value of the car is known as depreciation and is taken into account for tax purposes.

From a tax point of view, therefore, lease financing should be viewed in a similar way to the purchase of the car. Other considerations are more important in fleet procurement. These may be aspects of liquidity or the question of who offers the better interest rate.

The procurement of e-cars requires new data models

Electromobility cannot be implemented on the side, because the resources of e-cars are limited. They have a limited range, a limited charging capacity and can only be charged at certain times. Especially for field service, the charging infrastructure is a big issue.

On the other hand, every fleet is part of the company's carbon footprint, and the pressure to reduce it is increasing. No fleet manager can avoid this issue in the long run. Fleet management software must help you take all aspects into account, and with the appropriate data basis, these processes can be well managed.

E Vehicles
E Vehicles

From fleet manager to mobility manager

Fleet management lives in exciting times, as it evolves into mobility management. Planning is not only done with the own fleet. Can the employee get from A to B with alternative means of transport? How far can he use the train, is car sharing an option? This makes data analysis a challenge - which we at fleetster are happy to meet. The procurement of vehicles in a modern fleet is also no longer a pure ordering activity. Fleet management reshapes this role, with the aim of optimizing the price-performance ratio.

The fleet management must be up to date on current developments. Will the turn-off assistant in the truck become mandatory next year and I already buy the corresponding vehicle now? Or will it only be retrofitted next year. Pure price thinking, pure order processing takes a back seat. The focus is on market research, comparing offers in a qualified manner and negotiating successfully.

People in the vehicle
People in the vehicle

A good software supports in all areas

Fleet procurement is a very complex topic. We know and understand that. In the meantime, the fleet manager not only has to analyze his own fleet during procurement. He has to take budget constraints, employee wishes, and alternative mobility options into account. Even the implementation of electromobility does not work incidentally.

fleetster has a high level of expertise in the field of digital fleet management, and we design our algorithms accordingly. the resulting data enables you to perform extensive and meaningful analyses. we take into account the changes in mobility. we addressed many topics at an early stage, are now implementing solutions and making them available to our customers.