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Fleet Management Outsourcing in Latin America: A growing trend

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by Carolina Baham�n
28 June 2015

Fleet management is becoming a popular practice in Latin America especially among multinational corporations which are willing to pay the price of experienced suppliers with a global presence for undertaking these activities.� The main reason for this trend is cost reduction since companies have more information about how their drivers are using vehicles and how to achieve savings in fuel and other cost components. Some multinational companies with a presence in Latin America have started to engage with global FMCs reaching positive results in a short period of time.� ADL and LeasePlan are currently working in Latin America with global clients. Introduction Outsourcing of non-core business functions like fleet maintenance operations is gaining prominence among many multinational companies who are constantly seeking direct costs reduction. Large organizations in particular are keen to exploit the expertise of Fleet Management Companies (FMCs), to increase efficiency of businesses. Fleet management involves high resource consumption, demanding special equipment and technical knowledge. Thus, some organizations have opted to apply a global strategy for managing their car fleet by engaging the services of FMCs who offer a comprehensive plan with an extensive network of offices around the globe.   Author: Carolina Baham�n

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