22 March 2012

Vehicle Acquisition

sgfleet's buying power and strong relationships with vehicle suppliers and manufacturers assists clients to get the best price every time. sgfleet have a network of key dealers that commit to high quality service standards and competitive pricing. These are continually monitored and their performance reviewed against a range of key performance indicators.

The number of key dealers appointed is small enough to concentrate buying power, but large enough to support national operations.

As part of the acquisition process, sgfleet has the proprietary system AVA to source vehicles.  This is a web based tendering system where dealers compete for the orders on offer to ensure competitive pricing at all times.

AVA is further complimented by sgfleet’s purchasing power.  Currently over 1500 vehicles per month are purchased, which ensures that vehicles are obtained at industry best prices.  sgfleet are always fully aware of any discounts on offer in the new vehicle market, including any special subsidies which may be negotiated with the manufacturers, with the savings then passed onto clients.

Vehicles will always be supplied in accordance with an organisations’ individual specifications. In the event that a vehicle is ordered with accessories outside the standard vehicle policy, sgfleet will also co-ordinate third party suppliers. This includes the installation of job specific fit outs and other accessories unique to each operating environment. sgfleet will also liaise with both drivers and employees prior to order and if required, can provide a tax invoice directly to the individual employee.

New vehicle delivery dates are proactively monitored and confirmed with the delivering dealership as orders progress towards the required delivery date. The delivery status of vehicles is completely visible through the online Fleetintelligence system. The dashboard will display all vehicles on order and list any changes that may have occurred. 


Vehicle Disposal

Disposing of vehicles is more important than purchasing because the price received will vary depending on which disposal method is used.

It is a critical component to reducing the whole of life cost of each vehicle in any fleet. sgfleet will use the most effective disposal method based on the type of car and its location. This will ensure that the maximum return on assets is received.

To achieve the highest possible values at time of sale, flexibility is applied to the method and places of disposal. sgfleet’s volume and national coverage provides data on best performing methods on vehicle disposals. These are then measured against other sourced data to check current sales process performance against industry benchmarks.

Strategies adopted to maximise the sales prices include:

  • Disposal through sgfleet’s weekly tender process
  • Transferring vehicles to areas where higher results are being achieved for that type of vehicle
  • Cleaning and vehicle preparation
  • Possible rectification of damage if judged to achieve a premium over associated costs
  • Leveraging new vehicle orders against in-house tender processes
  • Utilising the services of auction houses in smaller states

sgfleet is able to arrange collection/transport of returned vehicles. Where the vehicle is being replaced by another sgfleet vehicle, the transport costs are often absorbed. Once vehicles are returned to the sgfleet disposals locations, the vehicles are then inspected. This is done in accordance with the guidelines laid down by Australian Fleet Lessors Association, Fair Wear and Tear Guide and is how condition is determined.

Once returned, they are then assessed; any necessary restorations are carried out following which the vehicle is processed through to sale. This is done by utilising a combination of sgfleet’s disposal facilities, dealer network and auction houses, in order to obtain the optimum sale price.