CATEGORY

Fleet Management

Fleet category is defined as mobility solution for sales personnel and executives. Organizations across the globe either provide a company car or cash allowance/reimbursement for their employees. There is a shift towards alternate mobility models like ride sharing. Company cars can be acquired in three ways - buying, leasing or renting. After the fleet is acquired, it needs to be managed, which includes various activities starting from vehicle purchase to vehicle disposal.

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Category Alerts


CATEGORY ALERTS

ALD Automotive Cease New Leasing Business in Russia, Belarus and Kazakhstan

June 29, 2022
alert level: High
CATEGORY ALERTS

Uptick in Global EV Sales

October 03, 2022
alert level: Low
CATEGORY ALERTS

Europe Vehicle Sales Expected to Decline in 2022

October 10, 2022
alert level: Low

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Fleet Management Market Monitoring Dashboard


Supply Demand

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Fleet Management Industry Benchmarks


Savings Achieved

(in %)

The average annual savings achieved in Fleet Management category is 8.10%

Payment Terms

(in days)

The industry average payment terms in Fleet Management category for the current quarter is 53.6 days

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Category Strategy and Flexibility

Engagement Model

Supply Assurance

Sourcing Process

Supplier Type

Pricing Model

Contract Length

SLAs/KPIs

Lead Time

Supplier Diversity

Targeted Savings

Risk Mitigation

Financial Risk

Sanctions

AMEs

Geopolitical Risk

Cost Optimization

Price per Unit Competitiveness

Specification Leanness

Minimum Order Quality

Payment Terms

Inventory Control

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    Fleet Management Suppliers


    35,868
    Total Suppliers
    1,321
    Diverse Suppliers
    88
    Normalized Supplier Rating
    Fleet Management Supplier

    Find the right-fit fleet management supplier for your specific business needs and filter by location, industry, category, revenue, certifications, and more on Beroe LiVE.Ai™.

    Sample Supplier
    Company
    ACCENTURE PUBLIC LIMITED COMPANY
    Location
    Jackson, Mississipi
    Duns number
    3862211

    D&B SER Rating

    dnb logo

    Up to 3 months

    1 9
    6
    Low Risk High Risk

    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.

    Moody`s ESG Solution
    ESG Profile

    Company and Sector Performance
    58

    100
    Robust (1)
    ESG Perfomance (/100)
    Environment
    90
    Social
    42
    Governance
    67
    6 Domains Performance (/100)
    Business behaviour
    58
    Human rights
    55
    Community Environment
    54
    Corporate governance
    72
    Human resources
    29
    Security Scorecard
    97

    Threat indicators
    A
    95
    Network Security
    Detecting insecure network settings
    A
    100
    Hacker Chatter
    Monitoring hacker sites for chatter about your company
    A
    100
    DNS Health
    Detecting DNS insecure configuration and vulnerabilities
    A
    98
    Application Security
    Detecting common website application vulnerbilities
    A
    94
    Endpoint Security
    Detecting unprotected enpoints or entry points of user tools, such as desktops, laptops mobile devices, and virtual desktops
    A
    100
    Cubic Score
    Proprietary algorithms checking for implementation of common security best practices
    A
    99
    Patching Cadence
    Out of date company assets which may contain vulnerabilities of risk
    A
    100
    Social Engineering
    Measuring company awareness to a social engineering or phising attack
    A
    100
    IP Reputation
    Detecting suspecious activity, such as malware or spam, within your company network
    A
    100
    Information Leak
    Potentially confidential company information which may have been inadvertently leaked

    Industry Comparison
    accenture.com
    Industry average
    Adverse Media Appearances
    Environmental Issues
    0
    Workforce Health Safety Issues
    0
    Product Service Issues
    9
    Human Rights Issues
    0
    Production Supply Chain Issues
    3
    Environmental Non Compliance Flags
    12
    Corruption Issues
    0
    Regulatory Non Compliance Flags
    5
    Fraud Issues
    2
    Labor Health Safety Flags
    6
    Regulatory Issues
    3
    Workforce Disputes
    1
    Sanctions
    0
    esg energy transition
    80
    Discrimination Workforce Rights Issues
    5
    esg controversies critical severity
    No

    Fleet Management market frequently asked questions


    Fleet leasing is most preferred in regions like Europe and North America, while in APAC and LATAM, purchase is the preferred model. Several large companies in these areas are shifting towards the leasing model, but the purchase model remains unaffected.

    The factors driving the growth of the global fleet management market are as follows. ' Centralization of fleet sourcing and management ' Decrease in the sale of diesel vehicles ' Risk and safety factors ' Driverless/self-driving vehicles ' Increase in mobility budget ' Shift towards alternative fuel vehicles ' Increased focus on mobility management

    From Beroe's fleet analysis market reports, the global passenger car sales were expected to grow at 2.5 percent to reach 85 million units from the past sales of 83 million units in 2016.

    The major KPIs in the fleet management industry are vehicle ordering, operational and consolidated reporting, service maintenance and repair, driver program, accident management, and insurance support and cost savings.

    Leasing, fuel management, maintenance, accident management, and administrative costs are the key components for contract structure in the current fleet management industry trends.

    As per the fleet management cost analysis, fuel, cost of capital/finance and maintenance are the key cost components that contribute to 75 percent of the leasing supplier's cost.

    North America and Europe have high market maturity regions, while LATAM, Africa, and APAC are the regions with low market maturity.

    Global Fleet Services, Volkswagen Financial Services, ALD Automotive, Arval, LeasePlan are the key service providers in the global fleet management market.

    The increase in the fleet leasing price is dependent on the MSRP of the vehicle and residual value. After the BREXIT in 2016, the exchange rate of the Pound was expected to remain low in 2017. Consequently, the MSRP was expected to witness a rise along with the lease price.

    Due to the fall in the exchange rate of the Pound, the fuel prices went up leading to higher fleet management costs. Companies can use this opportunity to explore techniques for fuel reduction, review fuel reimbursement rates, and adopt high mileage vehicles in the fleet.

    Fleet Management market report transcript


    Fleet Management Market Analysis and Global Outlook

    Adoption of the Internet of Things (IoT) devices and connected vehicle solutions are majorly influencing fleet management market trends. These leading-edge techs are beneficial in addressing dynamic market requirements for precise vehicle monitoring. 

    Fleet management operators connect fleet assets and automobiles by deploying IoT devices and offer the ability to oversee fleet operations remotely, paving the way for opportunistic growth potential.

    Telematics has considerably become the cornerstone of fleet management services. The inclusion of informatics with telecommunications capabilities enables fleet managers and operators to monitor and assess the trends related to the operations of their automobiles through systems such as the GPS.

    Telematics is making huge strides with the advent of autonomous vehicles and Radio-frequency identification (RFID) in logistics and transport bodies owing to rising investments and large-scale innovations from tech giants Tesla and Waymo.

    BREXIT –Impact on Fleet Leasing and Management

    An increase in fleet leasing cost is majorly dependent on the manufacturer's suggested retail price (MSRP) of the vehicle and residual value. Though the impact of Brexit was negligible in 2016, the Pound exchange rate is expected to remain low in 2017. As a result, MSRP is expected to go up and so does the lease price.

    Action Item

    • Buyers can focus on consolidating their fleet spend and obtain the best discount possible in the market to reduce the impact.

    Increase in Fleet Management Costs 

    • Fall in the exchange rate of U.K. pound has resulted in higher fuel prices and has lead to higher fleet management costs.

    Action Item

    • Companies can use this opportunity to explore fuel reduction techniques, reviewing fuel reimbursement rates and adopting high mileage vehicles in the fleet.

    Fleet Management Global Market Maturity  

    North America has been witnessing a notable rise in the number of warehousing operations, propelled by earlier adoption of fleet management solutions in tandem with the rising number of third-party players in the logistics domain.

    Moreover, an increasing number of automotive original equipment manufacturers (OEM) in North America, including Ford, Fiat-Chrysler, and General Motors, are investing in telematics innovations, which will drive the revenue in the commercial vehicle segment thus supporting the fleet management market growth for the long term.

    Surging investments in corporate vehicle fleets for workers is primarily favoring the growth of the fleet management market size in Europe. Furthermore, the growth of the automobile leasing business in the developed region has led to large-scale investments.

    Vehicle fleets across APAC have been growing rapidly over the recent past. However, the sector has also been confronting problems with regard to maintaining employee mobility and increasing capital and operational costs. 

    Further, the APAC fleet management market is also encountering hurdles in terms of infrastructure, with traffic congestion being a major concern that is hindering the adoption of fleet management solutions.

    Fleet Management Global Drivers and Constraints

    Buyers having global presence, increasing sales force and benefits of outsourcing non-core functions are driving the fleet leasing industry. However, alternatives to travel, like video conferencing, and alternatives to company cars, like car sharing, are some of the constraints.

    Outsourcing benefits cost control

    • The buyers outsource the car leasing and fleet management services to reduce the administrative overhead and to achieve cost benefits. Moreover, the fleet is one of the major spend areas, and buyers prefer outsourcing the fleet management functions to focus on their core business functions

    Global presence and scalability

    • Buyers with a global presence and higher mobility of their employees prefer outsourcing fleet management services to manage the increasing fleet size

    Sales force

    • An increasing sales force that requires mobility solutions results in increased fleet size, which drives the fleet management industry

    Video conferencing and webinars

    • With the advent of new technology like live webinars and video conferencing, it is possible to conduct online meetings and sales presentations, reducing the travel time and cost

    Support network

    • The usage of support networks like insurance, maintenance, servicing, and remarketing that are required in this industry is high and acts as a constraint to manage these small support service providers

    Alternate strategies

    • The use of alternate techniques, such as car-sharing and carpooling, reduces the number of vehicles in use.

    Constraints

    Potential Security Risks

    While the usage of fleet management systems and software is tremendously increasing, concerns regarding the risk of unauthorized access to automobiles are setting a huge challenge for market players. 

    As per this fleet management market research, industry players are going back to the drawing board to develop solutions to tackle the existing privacy issue.

    Why You Should Buy This Report

    The report provides information on major fleet management industry trends, drivers and constraints, the regional market outlook of APAC, Europe and North America, and Porter’s five force analysis of the global fleet management market share in each region. It provides insight into the supply trends and presents a SWOT analysis of major suppliers such as Arval, LeasePlan, and Wheels Inc, to name a few. Further, the fleet management market report breaks down the cost structure for different fleet management models and compares the best sourcing, pricing and contract models.