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The RFP sourcing process delivers only limited and short term savings. Price commitments are rarely maintained.
Why?
The proliferation of new vehicles and swift renewal cycles (in average one third of the fleet per annum) lead to continuous new pricing not corresponding at all to the RFP models and contract terms (duration, mileages).
Without daily price benchmarking and monitoring moving forward, the price creep over time is inevitable.
70% of contracts are subject to re-rating proposals whose competitiveness is difficult to evaluate without a sophisticated monitoring system and constantly updated market knowledge.
Together with a lack of monitoring of invoices, turn-in charges and end of lease fees, the deviations from optimal cost can be as wide as 15% on Total Cost of Ownership.
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