What questions to ask in your tender

If you are going to outsource your fleet, there are several key questions you need to ask. Here’s a handy guide.

Whether your company is looking at outsourcing to trim costs, because you’re in the public sector and have to tender, or just because your fleet is so aged it belongs in a museum, there are several questions you need to ask. And these questions are not just ones you would ask internally – such as is outsourcing really an option – but also when you go out to tender. Going out on tender offers you several benefits, such as providing an effective way to make sure you have the best supplier – and is especially pertinent if you have been in a marriage with the same provider for many years. 

How do you know you’re getting the best value for money for your specific needs?

Tendering also means you could find someone with a smart, innovative, plan or solution that will do exactly what you want, better, and for less. It could also keep your current provider on their toes. 

Tendering, as Kieran Muckle writes on LinkedIn, offers several benefits:

• Due diligence: providing the best possible value for money solution from procurement
• Compliance and regulatory requirements – especially if you are in the public sector
• You’ll help make the sector more competitive because companies will fight for your business
• It also shows your company what alternatives there are out there
• It keeps your current supplier thinking and on their toes
• Keeping any current supplier on their toes
• You get to drive what you want, not the supplier
• You could get better value, better service and better options for less
• And you’ll have an audit trail to show how you reviewed and chose your supplier

Who to ask?

If your company has decided to go out on tender, you need to know who to ask the right questions. Asking the right questions in your tender documents enables suppliers to provide the exact answers so that you can make an informed decision about which is the best way to take your fleet.

Asking the right questions to all potential suppliers means you can also carefully evaluate which company is the best fit for your needs, using a detailed matrix that weights scores against your needs. This means you have the opportunity to question, evaluate and compare the services that each fleet management supplier needs to offer.

However, before you can ask the right questions, you need to know and understand your fleet needs, and objectives – be it a replacement solution or a whole new venture. First, listen to all your stakeholders – this includes HR, your operational officer, manager, and anyone involved in the supply chain – including the personal assistant (PA).

There are several departments that need to be involved in the tender process:

• Fleet managers provide expert advice on operational requirements
• Finance provides funding options, pricing strategy, as well as supplier financial analysis.
• HR provides recruitment and retention strategies and is a key support function for the implementation and updating of the company’s travel policies.
• Legal will draw up robust agreements underwriting the selected bidder and needs to be involved from the get-go.
• Health and Safety department will give you input on processes and procedures to make sure that fleet vehicles are roadworthy and safe for employees using the vehicles.
• Despatch will clue you in on how their day works so this can be optimally integrated with the provider.
• Your PA or receptionist probably knows more about how the business works on the ground when it comes to personalities and issues than the chief operating officer (COO) – that input is valuable. 
  

Want to learn more about your Fleet Asset register? Download our template now. 

What are your business objectives?

Before you can craft a tender, you need to understand your objectives. You need to be clear on your profit objectives and ask questions such as:

• Describe in detail your approach to cost-saving identification programmes on an international level.
• Provide examples of your Executive Management Reporting and outline the features and benefits of your reporting tool.
• Describe the efficiencies this can bring to our fleet.
• Which KPIs do you use to measure the performance of your fleet management services?

People are just as, if not more, important than profit, especially if you are moving from outsourcing. So ask:

• In what ways can you pro-actively assist in reviewing our current fleet policies?
• Do you offer industry peer car policy benchmarking?
• Please outline the effectiveness of fleet as an employee retention tool.
• Outline your current driver safety training programme.
• Do you offer direct driver contact services, online driver self-serve portals and apps?

At the same time, we are all cognisant of the world we live in, and the need to be sustainable. Here are some key questions:

• How can you support us in measuring and reducing the emissions of our fleet?
• Clearly define your position on Corporate Social Responsibility (CSR) – How can you support our company to achieve its CSR goals,
• Outline your current telematics solution and alternative mobility options.

There are also a few other questions you can ask, about innovation, partnerships and flexibility:

• What innovative services can you offer and how can these benefit my fleet?
• What mobility services and products would best benefit my fleet?
• What are the fleet management company’s strategic goals and how will they benefit our company?
• What developments do you foresee in the fleet market over the next 3 – 5 years?
• Is there a flexible arrangement available if I need to change fleet size based on demand?
• Are you able to provide a comprehensive package that includes maintenance and the ability to get a replacement vehicle if required?
• Is vehicle maintenance and servicing included in the rental price, and how does this work when the km goes over the agreed? Charges should be transparent and predictable.
• What happens if your vehicle breaks down?
• Do you have the capability for me to track the fleet using state-of-the-art telematics?

When you have done all this homework, you can shape your tender, but don’t forget the following key questions:

• Do you understand my business?
• Do you understand what I’m trying to achieve?
• Do you understand what I need, not just what I want?
• Are you invested in my success?
• What are your future plans?

Leaving these questions open-ended will also give you an idea of the personalities you are working with.

Whether you go out on tender or stay in-house, make sure your business objectives are met – and that includes looking after your staff.