Fleet Logistics, Europe’s largest independent fleet management provider, has set up a preferred dealer network in the UK covering all major nameplates and with a set of new contractual agreements.
The new preferred dealer network, which comprises just 11 dealer groups and dealerships, provides UK fleet customers with access to 25 different makes throughout the UK, and includes all the most popular fleet manufacturers.
The preferred dealers have all agreed to new terms and conditions, service level agreements and key performance indicators, and their performance will be reviewed quarterly to ensure they continue to meet Fleet Logistics’ standards.
The new initiative is being seen as delivering a number of major benefits for Fleet Logistics’ UK fleet customers, including contracted KPIs to measure dealer performance, better dealer discounts and rebates, and a number of process efficiencies including reduced delivery times, improved service levels for drivers plus a new program of demonstrators.
Fleet Logistics, which has more than 180,000 vehicles under contract in 27 countries worldwide, placed more than 4,000 new vehicle orders in 2015 in the UK. Its most popular nameplates currently with fleet customers are BMW, Volkswagen, Vauxhall, Audi, and Mercedes.
If successful in the UK, Fleet Logistics plans to roll out the preferred dealer network initiative to a number of its major European markets, including France, Belgium and Germany. A similar system already exists in the Netherlands.
Fleet Logistics’ Head of UK and Ireland, Sue Branston, said the new initiative was designed to formalize the existing dealer network that Fleet Logistics already had in place in the UK and to complement some clients’ desire to maintain their choice of dealer. “This is one part of a new supply chain strategy that we are developing for our markets in Western Europe and beyond.
“We have been operating with an informal preferred dealer network in the UK for some time now. But this new arrangement puts it on a more formal footing with new terms and conditions, service levels and KPIs. We believe that, as a result, it allows us to more effectively leverage our buying power based on the scale of orders our customers place in the UK, leading to improved service levels, dealer discounts and better prices for our customers,” she said.
Branston said that the new network would speed up the new car ordering process significantly, depending on the vehicle ordered, and would improve the channels of communication and accuracy of vehicle specification checks. “The drivers will continue to use our Fleet.Wizard vehicle configurator as before to select the vehicle they require in line with their corporate fleet policy. That vehicle will then be the subject of multi-bidding as usual, using our panel of preferred leasing companies to bid for each vehicle order we place. However, what will be different going forward is that we will have already placed the order with one of our preferred dealers before that process takes place.”
“The leasing company that is successful in winning the order will then use our preferred dealer rather than their own network to source and supply the car. This will introduce process efficiencies and speed up the time between ordering and delivery. The new approach will be of benefit to the driver who will receive their vehicle more quickly and to the fleet customer who will enjoy more competitive prices,” explained Branston.
“The new set-up will also increase our control over service delivery to ensure that our customers and their drivers receive the best service levels possible, including a closer relationship with the driver. We will be able to measure the dealers’ performance more effectively as a result, and change any dealers that are not meeting the contracted standards,” she added.