Nigeria Fleet Market Market Report – Forecast, Outlook, Key Suppliers

Fleet Market Nigeria Category Intelligence

Report Coverage

Cost saving opportunities
Negotiation Levers
Replacement and Lifecycle Strategies for Fleet
Centralizing Fleet Maintenance in Nigeria

Fleet Market Nigeria Market Trends

Category Intelligence on Fleet Market Nigeria covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

Fleet Market Nigeria Executive Summary

Fleet Market Nigeria Best Practices
Outsourcing fleet management vs In-house fleet
Cost saving opportunities
Cost Structure of fleet
Replacement and Lifecycle Strategies for Fleet
Possibilities to centralize fleet maintenance

Fleet Market Nigeria Supplier Identification

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Industry Outlook & Drivers

Regional Market Outlook on Fleet Market

Outsourcing fleet management vs In-house fleet management

Organizations can typically achieve cost savings of 8-10 percent by outsourcing the fleet management services and this is the preferred model in Nigeria.

In-house management of fleet vehicles involves a higher manpower (15-20) as compared to outsourcing the services. Initial setup cost for in-house fleet management is high and streamlining the internal operations will require additional time.

In-house

Ratio of Staff

Typical size of an internal team is 15–20
A minimum of 10-12 for fleets in the range of 150-200
100% internal staff
No external staff managing fleet

Role of Internal and External Staffs

Role of internal staff includes contract management, supplier relations, financial analysis and budgeting, accounting and billing, performance and audit, fuel, insurance/claims, vehicle safety, tracking, roadside/accident assistance, driver safety, training, licensing, maintenance, servicing, vehicle utilization/performance, supplies, parts and disposal

Outsource

Ratio of Staff

Internal staffs include a fleet manager and 5-7 department heads, who report to him
A minimum of 4-5 employees for fleets in the range on 150-200

Role of Internal and External Staffs

90% of the activities are outsourced
Typical departments under fleet manager are acquisition, disposal, maintenance, training and safety
Internal team is responsible for coordinating the entire activities between leasing company and the organisation
Leasing company/fleet management company manages the daily operations

Key Cost Saving Opportunities

Multi-bidding

The best rates and discounts can be identified by running an RFP to multiple suppliers in the market.
In some cases, depending on the fleet size, buyers can choose the supplier with the best quote and try negotiating further

Fleet Mix

Reducing the number of car manufacturers and concentrating fleet mix to a limited number of OEMs can result in additional discounts, and this can lead to cost savings

Purchase through FMC

In some cases, depending on the discount, fleet management companies also facilitate car purchase with higher discounts but with a marginal fee per car

Lease Term

Increasing the lease term/rental term by one year (maximum five year lease) can be a quick win and can result in cost savings initially. However, the road conditions and maintenance related issues need to be considered before increasing the lease term

Car Upgrades

Buyer organizations can also negotiate on different upgrades for the cars that they purchase or lease

Cost Structure of Fleet and Cost Saving Opportunities

In Nigeria, organizations can save 10-12% of their spend over unmanaged fleet vehicles.

Organizations in Nigeria use company cars for a period of 3 years, since, cost structure components like depreciation and maintenance increase after this period

Cost saving opportunities

Depreciation: As depreciation rate increases exponentially Y-o-Y, FM companies provide discounts on depreciation rates based on the volume of purchase
Insurance: Insurance cost can be negotiated as the fleet management company will be in direct contact with the insurance provider
Maintenance and Service: Maintenance costs can be reduced as the FMC will have a centralized maintenance contract for all of their vehicles
Fueling: Discounts on fuel rate will be given by the FMC and centralized monitoring and tracking of the vehicles also results in cost savings

Fleet Market Nigeria

Top Suppliers

C & I Leasing Plc./HERTZ*
Memose International Limited
FleetPartners Leasing Limited
First Choice Leasing Ltd

Fleet Market Nigeria Market Intelligence

Fleet Market Nigeria Category Intelligence

Report Coverage

Fleet Market Nigeria Market Trends

Table of contents

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Industry Outlook & Drivers

Regional Market Outlook on Fleet Market

Key Cost Saving Opportunities

Cost Structure of Fleet and Cost Saving Opportunities

Any more questions?

Offerings

Beroe

Others

Fleet Market Nigeria Market Intelligence

Fleet Market Nigeria Category Intelligence

Report Coverage

Fleet Market Nigeria Market Trends

Table of contents

Want a more detailed personalised report?

Industry Outlook & Drivers

Regional Market Outlook on Fleet Market

Key Cost Saving Opportunities

Cost Structure of Fleet and Cost Saving Opportunities

Top Suppliers

Related Categories

Any more questions?

Offerings

Beroe

Others

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