February 20, 2023
By:EmpoweringCPO Insights Team

Fleet Leasing & Management

This report gives insights into the global fleet leasing market, the impact of Covid-19 on the Fleet Leasing market, peer comparison and cost drivers, insights on how to negotiate fleet leasing contracts, leading suppliers, industry analysis using Porter’s 5 forces model, and many other insights on this category.

Abstract

  • Fleet management is the way in which businesses finance, organize, track, and maintain their company vehicles
  • The Global Automotive Fleet Leasing Market was valued at UЅD $28,673.9 mn in 2020 and is projected to achieve a valuation of UЅD $53,267.7 Мn by 2030, at a САGR of 7.7%
  • The COVID-19 pandemic has the dubious distinction of being the greatest-ever disruption of the fleet industry
  • The need for flexible individual mobility is growing, especially due to the pandemic in 2020 & 2021
  • Key cost drivers for fleet leasing firms have been favorable for the last two years as the cost of funds has decreased, however, vehicle cost and people costs have marginally increased
  • Maintenance management and accident management are two main negotiable aspects of fleet management services
  • Buyers have strong bargaining power as this is a commoditized service and the switching cost is low
  • This report also provides revenue, capabilities/industry served, and the number of employees of all the leading service providers.

Table of Content

Content Slide No.
Executive Summary 3
Background 4
Market Overview 5
Impact of COVID’19 7
Shared Mobility 8
Types of Fleet Leasing 9
Peer Comparison and Cost Drivers 10
Total Cost of Ownership (TCO) 11
Benefits of Fleet Leasing 13
Negotiating Fleet Leasing Contract 16
Competitive Analysis 18
Kraljic Matrix 19
Sourcing Levers 20
Supplier Landscape 21

If required EmpoweringCPO can support with additional information and the next steps with executing projects like Fleet Leasing & Management. Also, feel free to reach us if a similar report is required for any other category. We can also help your organization with tools and services like Procurement Outsourcing Dashboard, Spend Analysis, Procurement Market Intelligence, and Procurement Consultancy.

EmpoweringCPO is a team of experienced sourcing and procurement professionals with hands on experience of having worked with many fortune 500 companies. The company was founded in 2011 and since then has executed multiple strategic sourcing projects and have achieved average savings of 10-12% so far. In addition to Strategic Sourcing their other offerings are Spend Analysis, Procurement Intelligence, Procurement Analytics, Best Cost Country Sourcing, Procurement Outsourcing, Built Operate Transfer, Supplier Diversity, Sustainable Procurement, Tail Spend Management, Item Master Optimization, Collective Buying, Compliance Tracking and Managed Procurement Services.

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At EmpoweringCPO, we’re not just a procurement service provider; we’re your strategic ally. With a suite of offerings—from strategic sourcing to procurement analytics—we prioritize your organization’s unique needs, ensuring every procurement decision is smart, strategic, and sustainable.

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Every saving forecasted should translate into reality. Our savings compliance tracking closely monitors and validates realized savings against projections, ensuring transparency, accountability, and confidence in your procurement strategies.

Absolutely. We believe in the unique potential of each organization. Share your aspirations, and we’ll craft a procurement narrative that’s exclusively yours, resonating with your goals and ethos.

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In a global marketplace, knowing where to source is as crucial as what to source. Our best cost country sourcing identifies optimal sourcing locations based on quality, cost, and risk, ensuring your global operations remain competitive and resilient.

Uncertainties demand vigilance. Our supplier risk management actively monitors, evaluates, and strategizes against potential supplier risks. From geopolitical changes to supply chain disruptions, we help you stay a step ahead, ensuring continuity and stability.

An optimized item master is foundational for efficient inventory management. We refine and standardize your item data, leading to accurate tracking, reduced redundancies, and a smoother procurement lifecycle.

Procurement intelligence goes beyond traditional market research. It offers tailored insights specific to procurement activities—supplier landscapes, pricing models, and risk assessments. With EmpoweringCPO, you get actionable intelligence designed to optimize and elevate your procurement decisions.

Our custom dashboards and tools offer a holistic view of your procurement operations at a glance. By integrating real-time data, performance metrics, and analytical insights, they empower your team to make informed, agile decisions, driving efficiency and value.

Consider us an extension of your team. Our managed procurement service handles the intricacies of your procurement processes, from sourcing to payment. By leveraging our expertise, you gain the freedom to focus on core business functions while enjoying enhanced procurement efficiency.

Supplier diversity enriches your supply chain by integrating businesses from varied backgrounds, ensuring inclusivity. This not only promotes innovation and resilience but also positions your organization as a forward-thinking, socially-responsible entity.

Savings projected after strategic sourcing project should mirror savings achieved and reaslized. Our savings compliance tracking ensures this by validating and monitoring realized savings against set benchmarks and projected savings, infusing transparency and confidence into your cost-saving endeavors.

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Compliance Management Tool

Compliance management is very critical as otherwise the procurement organization may run into a scenario where there is a huge gap between realized savings and reported savings. Many procurement functions estimate large savings numbers when contracts are signed. They also invest significant time and effort in negotiating contracts for necessary goods and services, only to have a third or more of their purchasing dollars flow outside those deals. Some of the obvious fall-outs of non-compliance and maverick purchases are:

  • Very high prices
  • Risk of losing out on volume discounts and rebates

As compared to the current contract that was finalized after the sourcing process, the tool helps in tracking:

  • Vendor Compliance
  • Price Compliance

The objective of this tool is to ensure that the orders are placed only with the vendors that were shortlisted after the sourcing process and at the same price that was agreed upon and negotiated during and after the strategic sourcing process.

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