Fleet Management Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

The price of a fleet management service depends on the number of services that is being outsourced to an FMC (fleet management company), such as driver management, vehicle management, consulting, type and number of vehicles being leased, number of equipments required for fleet monitoring, etc. In addition, fleet management solution depends on factors such as business needs, features, type of vehicle, software selected, equipment, etc. On average, fleet management solutions cost around USD 13.5 to USD 44.5 per vehicle, per month and can cost as high as USD 495 per vehicle per month for large vehicles such as trucks and buses. On getting into an annual contract rather than a monthly arrangement, the costs can be 13.5% to 32.5% lesser, making it more economical.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, Fleet Managers at Elements Fleet Management and ALD International receive a 10% - 15% higher base salary compared to the salary received by Fleet Managers working in companies such as Mobilease and Ewald Fleet Solutions. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the Fleet Management category over the last two years:

In February 2023, Holman, Inc. announced the acquisition of Park Wood Managers, LLC. The acquisition will enable Holman, Inc. to offer commercial risk mitigation and comprehensive automotive insurance coverage services for commercial fleet vehicles, irrespective of asset type, sector, or size of the fleet. In addition, with the support of one of the top carriers in the sector, Holman, Inc. is now able to provide its customers with the additional protection of an A-minus rated cut-through endorsement.

In February 2023, Wheels and Donlen (subsidiaries of Athene Holding Ltd.) announced a merger with Lease Plan USA, which together is now known as Wheels, LLC. The new Wheels company gets increased scale, higher investment capacity, and capabilities to serve clients better across the globe with more than 1,900 people, $7 billion in assets located in the US and Canada, and more than 799,999 vehicles under management, serving clients in over 58 nations.

In April 2022, Descartes Systems Group announced the acquisition of Foxtrot. The acquisition will complement Descartes Systems Group with a team possessing deep domain knowledge and technology that will accelerate company’s efforts in the area of route planning and execution. The company will leverage Foxtrot's cutting-edge machine learning algorithms that use millions of data points gathered from field vehicles to assist clients in lowering last-mile expenses, enhancing client interactions, and identifying service elements that boost route effectiveness and on-time performance.