White paper: Unintended consequences of outsourcing car fleet
The use of external company car fleet management companies is becoming an increasingly common and popular strategy. Fleetworx’s report looks at the unintended consequences of an outsourcing programme.
- Typically 40 per cent of companies outsource their company car fleet management.
- 17 per cent of companies operating localised fleet will manage them externally, whereas 63 per cent of companies who have a centralised policy for multiple countries will use outsourced management.
- The unintended consequences of outsourcing fleet management to an external provider are: cost creep; knowledge imbalance; key stakeholder disconnect; policy decision dilution; and financial compliance challenges.
- There are four strategies to help ensure the supply chain delivers an unbiased, cost contained solution: infrastructure; data mining; vendor management; and expertise.
This paper covers five unintended consequences of outsourcing company car fleet management; the impact on businesses and four strategies to avoid them.