LeasePlan opens up supplier competition

4 December 2012

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4 December 2012 | Anna Reynolds

Fleet management company LeasePlan has developed a ‘supplier panel’ model, which enables it to award more work to the best performing vendors.

Over the past year, LeasePlan has moved from having a single rental supplier to a panel of five, which provide more than 44,000 rental vehicles a year. The company has also set up panels for garages and remarketing (selling a car at the end of its lease) where it now has 21 channels compared to the previous 13. Next year it will extend the model to cover glass and other key commodities and services.

The company has contracts with all suppliers on the panel but these deals are based on predicted volumes. Those who deliver the best performance in terms of cost and customer service are rewarded with the most work.

A team of seven employees from procurement and supplier management, formed in March, developed the model.

Neil Dixon, head of procurement and supplier management at LeasePlan, told SM: “This allows us to better align the needs of our customers, either geographically or based on competency, with the suppliers who are best able to deliver.

“Customers also benefit from having a single point of contact and a set of service standards rather than having to deal with a diverse range of suppliers themselves.”

Dixon said the company regularly communicates with the managing directors of the supplier firms and provides an incentive by ranking their performance against other suppliers on the panel.

LeasePlan’s procurement and supplier management team is made up of 26 staff responsible for an annual spend of more than £100 million. The company currently has more than 130,000 vehicles on lease across its four brands, LeasePlan, LeasePlan Go, Network and Automotive Leasing.

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