Fleets need a “Plan B” to cover how they will react if critical services are withdrawn, says the Association of Fleet Professionals (AFP).
Paul Hollick, chair at the AFP, said there was a need to consider contingencies that addressed potential issues including supplier failures or sudden changes in their corporate strategy.
“This is something that has become more pertinent for fleets as a result of several high-profile developments over recent years and arguably, is becoming more of a problem.
“Currently, several members are affected by the decisions of BP Business Chargers and JustPark to withdraw from the charging solutions sector. Those businesses are financially sound, of course, but there is also the possibility of companies going under, as we’ve seen with cases such as Prohire, Rivus and Newtown Vehicle Rentals.
“These situations can cause immediate and ongoing disruption to essential fleet services. For example, rental vehicles may be recovered without notice, leaving drivers and goods without transport – or risk management may be affected because of the removal of access to service, maintenance and repair providers.”
Fleets could find themselves looking for new suppliers for critical services in a limited timeframe, he said, creating substantial pressure and meaning important procurement decisions were made in less-than-ideal circumstances, often leading to longer-term issues.
“This is really where the need for contingency planning is most apparent. If a dozen drivers are calling you simultaneously because garages won’t release vehicles that have been serviced under a maintenance provider that just called in the receivers, it’s very useful to be able to reach for a structured document designed to handle such a situation.
“We’re finding our members are increasingly interested in creating a formal ‘Plan B’ of this type to cover key services, including everything from short-term measures that keep your fleet safe and mobile, through to maintaining relationships with suppliers who could deliver an alternative provision. It’s not a huge task when integrated into your day-to-day fleet management but could prove a godsend if an issue arises.”
Paul said that, as ever, being part of the AFP was highly beneficial in terms of researching financial or strategic issues affecting suppliers.
“Any competent fleet manager will have attempted to pre-empt issues of this type by thoroughly assessing supplier viability before signing any contracts. However, even businesses that pass these tests can fail and anyway, it is much more difficult to anticipate the kind of strategic decisions that see suppliers withdraw from providing fleet services.
“This is where the AFP has a role to play. It can be invaluable to spend time talking to other members about their experiences with a supplier you are considering partnering. One of the key functions of the association is the sharing of information and our members have often identified issues with a supplier before they formally go into receivership or make big shifts in corporate strategy. It’s relatively rare these developments come as a surprise to us.”