We’ve all been impacted by the disruption in vehicle supply due to the pandemic shutdowns followed by microprocessor shortages. As we emerge from this crisis, the industry will be facing pent-up demand. Vehicle manufacturers are working to fairly allocate vehicles to current customers to the best of their ability.
In the meantime, here are some of the ideas and alternatives we are suggesting to our clients:
- Take advantage of surplus and any underutilized vehicles within your fleet – Consider whether there is potential for deploying these assets.
- Review maintenance parameters for in-service units – We suggest reviewing parameters for older units to be certain that you are maintaining vehicles that will be in service longer.
- Review turn-in units; assign to other drivers – Perhaps there is an opportunity to reassign turn-in units when new vehicle orders arrive –for use until the supply chain resolves.
- Consider short/long term rentals – For some clients, there are options of long-term rentals. Some providers may have a solution allowing for some light upfit. It is an option worth consideration.
- Acquiring used vehicles; expanded acquisition channels – Be open to acquiring used vehicles.
- Flexibility is key – Consider other manufacturers, trim levels, colors and make sure CAP agreements are in place with your non preferred OEMs.
- Alternate vehicle selections – Is it possible that an SUV might serve the same purpose for your organization that a truck does?
- Monitor utilization – There may be opportunities to swap a vehicle in a low utilization area of the country to a higher utilization region.
- Be flexible with upfit – Establish what you definitively need versus what items you can live without for now. It may be possible to get those other items installed later.
- Be certain that you are engaging with your OEM reps – Have proactive conversations about allocation, etc.
At Wheels Donlen, we are doing everything we can to help our customers navigate these market conditions. For example:
- We are constantly engaging with our OEM contacts discussing the best ways to adapt our current processes to the coming volume.
- Our partner contacts are open and flexible to address client needs as best they can.
- We continually monitor what the status of the order needs are from OEMs as well as what the OEMs need from Wheels Donlen.
- We stay connected with the OEMs and act immediately on their very latest updates.
- Truck Operations procurement is proactively monitoring orders for possible cancellations and upfit purchase orders.
We continuously monitor the situation and are working to find creative solutions to any controllable circumstances. Please reach out to your fleet consulting manager to discuss any of these potential solutions.