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21/09/06 Fleet News - Whip-hand attitude not the way forward
As indicated in last week’s lead article, ‘Tougher times force suppliers to raise game’ (Fleet News, September 14), the trend for outsourcing has peaked and is now maturing.
As a consequence of this boom, it is evident that some providers have struggled to meet the requirements of their customers, which has inevitably impacted upon the reputation of the sector.
However, despite a predicted slow-down, there are still growth opportunities for those suppliers that have proven that they can deliver the rigorous service and commercial, business-focused expertise that organisations rightly expect.
In response to the debate about whether the future relies on focusing on service levels or niche offerings, the two simply cannot be separated.
Providers must focus their entire end-to-end operations on all elements of the customer offering, from the services they offer through to all aspects of operations and delivery.
Forward-thinking outsource providers have already realised that growth will be achieved by working with customers to understand their commercial objectives, challenges and environment.
It is a natural fit due to the increasingly strategic role of fleet and the value that effective fleet management companies can contribute towards the efficiency and profitability of their customers’ businesses.
Fleet management companies need to have the knowledge and understanding to communicate on this level. They must have an appreciation of how they can help their customers grow their businesses. And, as fleet becomes enveloped in more issues and corporate legislation, there is an opportunity to tap into this to provide offerings that go beyond the conventional and incorporate specialist services.
Obviously, these must be supported by robust customer service operations to deliver on their promises.
The idea that customers should hold the ‘whip hand’ over suppliers during a downturn is damaging to both parties and also the long-term health of the industry. Both fleet managers and providers must work in partnership. And, by delivering tangible results supported by high service standards, providers will be able to retain and develop existing clients and attract new customers.
Inevitably, there will be some providers that will not have the ability or infrastructure to step up to the mark. For those, industry benchmarks should be welcomed to provide guidance. However, for those who are working consultatively and can exceed expectations beyond bare guidelines, the industry is ripe with opportunity.
Tracy Pepper
Managing director
FMG Support
