How Partnering with a Fleet Management Company Can Help You Navigate Current Vehicle Supply Chain Challenges
Since the global pandemic essentially shut down the world in March of 2020, life has been exceptionally challenging on many levels, but especially so on supply chains for nearly every industry imaginable. For those in the automotive industry or those who manage fleets of vehicles, shortages of critical parts and equipment have created a domino effect with shortfalls at the manufacturing point, causing delays to the market to ripple into disruptions to end-user deliveries. However, the situation is expected to improve in 2022, it is imperative to know that there is help at hand. Partnering with a fleet management company such as Motorlease can allow for creative solutions that might not be otherwise possible.
Industry Connections and Access
One of the biggest challenges in navigating these ongoing supply and logistics challenges lies in the communications realm. The essential business model of fleet management requires close relationships with a wide variety of manufacturers. As a result, a fleet management company often has access to unique information directly from the source to help clients make the best-informed decisions. This first-hand information can be crucial in a scenario when time is often of the essence, as it has been lately concerning vehicle orders. Unfortunately, knowing where to turn for the most valid and pertinent information is now more challenging than ever, leading to confusion for those looking to manage their fleet efficiently.
Finding vehicles has been a headache of migraine proportions for most fleets. The days of simply calling a dealership and placing an order are gone. Dealer lots are remarkably bare, and automakers are reporting that U.S. dealers had fewer than 1 million new vehicles on their lots in August 2021 — 72% lower than in August 2019. These supply shortages have eliminated the possibility of ordering some cars, and even fleets that are able to acquire vehicles will only receive a fraction of what they requested. While no magic bullet will solve these issues, working with a fleet management company can increase your chances of locating the vehicles your fleet needs. Fleet management companies work with clients across the country and have access to a vast network of suppliers who can identify units. A partnership with a fleet management company will turn your local reach into national reach, giving you the best odds for success.
Fleet management companies are up to date on the emerging industry trends — it’s their business to navigate clients through the pros and cons, helping them identify areas for potential introductions to the fleet. In leading news stories these days, electric vehicles are making headlines. Nearly every automaker is racing to release new electrified models, and some like GMC are committing to strict deadlines to phase out fossil-fueled vehicles completely. This new electrification trend can be overwhelming for many fleets with so many operational aspects to consider. Aside from new trends with electric vehicles, the automotive industry has shifted to focusing on SUVs and away from sedans. This has led to several manufacturers to eliminate their sedan offerings, including the popular Volkswagen Passat and Mazda6. Having a trusted resource steer you through all of the variables in making informed decisions for your fleet will pay enormous dividends driving forward.
With the complex challenges we’re experiencing today, fleets will have to get adaptable and responsive. Partnering with a fleet management company offers flexibility at a time when it’s needed most. Unlike a traditional dealership, fleet management companies are equally opportunistic when it comes to vehicle manufacturers. They are committed to finding the right solution for their clients regardless of the automaker. This openness allows them to source potential solutions across a wide range of options, offering solutions that might be overlooked.
Additionally, fleet management companies can customize programs tailored to each clients’ specific needs. Unlike rigid financing arrangements through dealerships, fleet management companies’ focus is solely on commercial fleets. As a result, Motorlease has an innate understanding of their clients’ changing needs and delivers creative and flexible solutions.