Nine suggestions for a successful fleet tender process

According to Simon Staton, Director of Client Management, Venson Automotive Solutions

Escalating costs of fleet management are forcing businesses large and small to reassess fleet partners. After salaries, fleets can be one of the biggest operational costs, so careful selection of outsourced expertise can make a massive difference to the bottom line. Whether seeking a new supplier, or simply benchmarking the market, the procurement process cannot be rushed. A well-thought-out tender document will help to secure the right partnership, value for money and the level of service needed to meet operational objectives.

Here are some top tips on delivering a successful tender:

1. Collaboration is key – the tender document needs to be written in collaboration with those who have the necessary knowledge and experience. Even if the procurement department take the lead in the process, it is vital that they take advice from key parties with appropriate skill sets who also understand the wider market as well as their own organisation and how it operates its fleet. E.g., the fleet manager, finance department, HR, H&S, environmental manager and legal.



2. Define the requirement – Establish the aim of what is to be achieved by going out to tender, as well as opportunities for improvement within the current fleet structure. Priorities and strategies will vary for every business across a wide range of factors such as value for money, quality, reliability and service. Discussing and listing the agreed priorities will help to streamline the tender process.




3. Do your homework – read the fleet press, talk to peers, attend industry meetings and network to find the handful of organisations that are likely to be the most suitable supplier to meet requirements. Incumbent providers should not be ignored unless there has been severe service or contractual issues.




4. Consider pre-qualification – issued prior to the invitation to tender, a pre-qualification document can improve efficiency by defining the ‘best fit' shortlist of bidders to progress to the tender stage. Pre-qualification meetings can begin a dialogue and help potential suppliers to ‘get under the skin' of the organisation and truly understand its goals.




5. Seek a future-proof supplier – selecting suppliers with knowledge of the latest marketplace developments, and that are investing in innovative solutions, allows fleets to make the right decision that will be effective in the longer term.




6. Carefully consider the tender content – key questions should focus on operational delivery; what's important to the fleet operator, fleet department and the organisation. The tender document should reflect what is happening within the fleet and tackle specifics. Potential suppliers can then deliver solutions that address those issues.




7. Create a structured tender – good, advanced planning and a concise, clearly structured and well thought-through, tender document will reduce the likelihood of suppliers asking numerous questions, which would lengthen the tender process unnecessarily.




8. Meet the bidders – a visit to the shortlisted suppliers' premises helps to understand more about the supplier. Their business set-up, the experience of the teams who will be supporting the contract and how they interact and manage their existing customers.




9. See the bigger picture - Even when the reason for going to tender is to reduce costs, don't get caught up in the upfront cost – every supplier offers something different, as well as different added-value options and a different level of value for money. Focus on choosing the best partner for the current and future business needs, even if that does not come at the lowest upfront cost

Tendering takes precious time, but it's so important to get it right. Remember, tender documents that ask ill-informed questions, request irrelevant information, and have no focus as to why the process is being undertaken can lead to suppliers deciding not to respond to the tender, or providing an inaccurate response. This can leave an organisation with an arrangement that is no better, or potentially worse, than their current one. No business can afford that.

Intelligent, focused questions will enable suppliers to provide detailed answers that in turn will enable organisations to truly focus on implementing the most appropriate solution for their fleet requirements.

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