In the last issue of FLEET intouch we discussed the important fleet management tools of policy, procedure and planning. In this issue we will consider the importance of procurement to a well-managed fleet.

Procurement is a business discipline aimed at ensuring the organisation’s acquisitions are undertaken in a manner that delivers the best value outcome. Procurement does not rely on personal tastes and preferences but is an objective process focused on organisational objectives.

Typically, items above a certain value require the calling of tenders. Items less than the tender threshold can be purchased by quotation.

When planning tenders, it is important to establish assessment criteria before approaching the market. Considerations such as compliance to specification, WHS, environmental performance, warranties and service support can all be important inputs to a best value decision.

Read 'How healthy is your fleet? part one and part two. 

A collaborative approach is best used in planning and undertaking fleet procurement projects and great input and be obtained for a range of stakeholders such as operators, workshops, finance department and so on.

The process and decisions undertaken in reaching a purchase decision should be documented and signed off by the necessary authority. This purchasing report provides an important record of the process and ultimate decision should the need to review or justify the decision arise at some future time.

Procurement is just one of 12 areas assessed as part of the IPWEA 3rd Party Health Check. The IPWEA Fleet Management Health Check is an efficient and effective way for a fleet owner to review their fleet management processes and activities to identify what is being done well – but more importantly where improvements can be made. The health check is a proactive and positive way to identify and address areas of concern before they become more significant issues. It’s like going to a Doctor for a check-up so you can address problems before they become serious and costly.

A health check provides the following benefits:

• Identifies gaps before more serious problems occur
• Drives continuous improvement
• Demonstrates proactive management

More information on the IPWEA 3rd Party Health Check can be found here.