{"id":4990,"date":"2020-04-05T17:41:15","date_gmt":"2020-04-05T15:41:15","guid":{"rendered":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/?p=4990"},"modified":"2020-04-05T17:42:54","modified_gmt":"2020-04-05T15:42:54","slug":"vehicle-ordering-best-practices","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2020\/04\/05\/vehicle-ordering-best-practices\/","title":{"rendered":"Vehicle Ordering Best Practices"},"content":{"rendered":"<h3 style=\"text-align: center;\"><span style=\"color: #0000ff;\"><strong>Vehicle Ordering Best Practices<\/strong><\/span><\/h3>\n<div>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Making the most of your vehicle selection and replacement timing is essential. Jennifer Chapman, Foss National Leasing, shares some best practices for managing this crucial aspect of optimal fleet management.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Don\u2019t let the state of your current vehicles solely dictate your replacement timing. Instead, make vehicle replacement a conscious business decision. Your replacement strategy should take seasonal remarketing values into account. It should also address whether you\u2019ll order from a factory or dealer inventory.\u00a0 No matter the size of your fleet \u2013 from 10 to 1,000 &#8211; there\u2019s a significant opportunity for savings when you factory order your vehicle replacements, instead of buying from stock.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\"><strong>Advantages of Factory Ordering vs Buying Dealer Stock<\/strong><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #0000ff;\">Get the exact vehicle you require, not just the best of what\u2019s available<\/span><\/li>\n<li><span style=\"color: #0000ff;\">Order the vehicle for a delayed delivery, so you get it when you want or need it (depending on OEM build scheduling)<\/span><\/li>\n<li><span style=\"color: #0000ff;\">Have a better chance of allocation from the OEM when you order early in the model year<\/span><\/li>\n<li><span style=\"color: #0000ff;\">Get vehicles delivered directly to where your drivers are located<\/span><\/li>\n<li><span style=\"color: #0000ff;\">Receive Ship-Thru capability for upfitting<\/span><\/li>\n<li><span style=\"color: #0000ff;\">Get locked-in pricing from the date your vehicle was ordered\u00a0<\/span><\/li>\n<li><span style=\"color: #0000ff;\">Enjoy lower dealer markup and acquisition fees when compared to stock inventory<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Studies have shown that the average vehicle purchased out of dealer inventory will cost $750-$1,000 more than a factory order for the same driver requirement.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">But timing and sourcing aren\u2019t the only issues to think about; Total cost of ownership and fit for purpose analyses are also critical to your vehicle replacement process.\u00a0 Your total cost of ownership should always include:\u00a0<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"color: #0000ff;\">vehicle cost and projected resale value to calculate depreciation<\/span><\/li>\n<li><span style=\"color: #0000ff;\">cost of fuel consumption<\/span><\/li>\n<li><span style=\"color: #0000ff;\">energy and charging station costs (if you have electric vehicles)<\/span><\/li>\n<li><span style=\"color: #0000ff;\">preventative maintenance<\/span><\/li>\n<li><span style=\"color: #0000ff;\">insurance<\/span><\/li>\n<li><span style=\"color: #0000ff;\">interest<\/span><\/li>\n<li><span style=\"color: #0000ff;\">program fees and licensing<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">To maximize resale value, equip your vehicles with the technology and safety features that used car buyers will expect to see in three-to-four years. Think about what you might want as a consumer now in your vehicle\u2014connected mobility, automatic braking etc\u2014 and then think back to your buying decision three years ago. Did you include those\u00a0 in your vehicles\u2019 required options? Being proactive when deciding on options will boost resale value and thus your business\u2019 return on investment.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">In Canada, there\u2019s another piece of the ordering puzzle that requires careful and considerate planning: allocation and availability.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Our fleet size here is only ten percent of that of our U.S. counterparts, and our allocation for fleet vehicles reflects that size differential. Add to this factors you can\u2019t predict, such as major weather events, forest fires, and overall demand for trucks in the U.S. These have all played a role in why finding light duty commercial vehicles has been such a challenge in the 2019 model year.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Even if your business is a large commercial vehicle player here in Canada, when compared to those in the U.S. that are competing for the same allocation, an OEM won\u2019t cater to the ten percent in Canada, and make the other 90 in the U.S. wait. That\u2019s why, if you order later in the model year, you might be unable to get the vehicles you need allocated in time.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">In addition, it\u2019s becoming common to experience shorter and shorter ordering cycles from OEMs when placing your factory orders, while at the same time, experiencing longer lead times for delivery.\u00a0 What used to be a six-to-ten week delivery time frame\u2014a norm for many domestic OEMs just five years ago\u2014is likely now a staggering three-to-six month wait, for almost any vehicle coming into Canada.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">So, forecasting your replacement needs and projected new acquisitions is now more important than ever.\u00a0\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Add to this that 75 percent of all new cars and trucks\u2014over 1.8 million freight railcar loads in 2017 alone\u2014 are shipped by rail at some time in their delivery process. Factors like railcar shortages and labour disruptions can intensify this already extended order-to-delivery timeframe.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">So, with all this flux, how can companies get around longer lead times and availability issues?<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">One option FNL recommends to our customers is a short term lease solution like our Flex Lease option. Flex Lease allows you to place your new driver, perhaps one waiting for a factory order, into a hassle-free short term lease vehicle for one-to-six months. This ensures that your driver is in a fleet-ready vehicle with flexible mileage that is both delivered to them directly, and at a competitive rate, while the order is being produced by the OEM.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">It goes without saying that planning your replacements as early as possible is ultimately the best way to ensure you have the vehicles you want, when you need them. Working with your fleet management partner now, and communicating consistently will help ensure that your 2020 vehicles are there waiting to do the job you need them to do.<\/span><\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<p>Source: <a href=\"https:\/\/www.fleetbusiness.com\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/www.fleetbusiness.com<\/a><\/p>\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/newsletter\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>FLEET MANAGEMENT NEWSLETTER<\/strong><\/a><\/h3>\n<p><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/newsletter\/\"><img loading=\"lazy\" class=\"aligncenter wp-image-4933 size-full\" src=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/Logo.jpg\" sizes=\"(max-width: 3995px) 100vw, 3995px\" srcset=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/Logo.jpg 3995w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/Logo-300x66.jpg 300w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/Logo-1024x226.jpg 1024w\" alt=\"\" width=\"3995\" height=\"882\" \/><\/a><\/p>\n<p>Join to our NEWSLETTER; you\u2019ll get the latest news, articles, publications, training, conferences, events, congresses, and white papers related to Fleet Management, Mobility and Automotive IN your email fortnightly.<\/p>\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/newsletter\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>NEWSLETTER<\/strong><\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>Vehicle Ordering Best Practices Making the most of your vehicle selection and replacement timing is essential. Jennifer Chapman, Foss National Leasing, shares some best practices for managing this crucial aspect of optimal fleet management. Don\u2019t let the state of your current vehicles solely dictate your replacement timing. Instead, make vehicle replacement a conscious business decision&#8230;.<\/p>\n","protected":false},"author":3,"featured_media":4991,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[114,69],"_links":{"self":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/4990"}],"collection":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/comments?post=4990"}],"version-history":[{"count":2,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/4990\/revisions"}],"predecessor-version":[{"id":4993,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/4990\/revisions\/4993"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media\/4991"}],"wp:attachment":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media?parent=4990"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/categories?post=4990"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/tags?post=4990"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}