Multi-bidding: Minimise leasing costs by automatic bidding process

The trade journal "Flottenmanagement" focuses on the topic of how fleet managers can reduce the leasing costs for vehicles in its issue 2/2020.

Multi-Bidding reduces the Costs for Leasing
The multi-bidding process is introduced as a major solution to this dilemma. To contribute to the article, we interviewed the board of directors of community4you AG. Here we summarize the most important insights:

How does the fleet procurement process work these days?

Fleet managers mostly know what goes on behind a manual ordering process: an employee has already looked up what he would like to order on the website of an automobile manufacturer. He passes his preferred vehicle to the fleet manager, who asks for offers from various suppliers and compares the outcomes. After a week you realise that the costs of this vehicle do not correspond to the employee's car policy. Now, your employee is disappointed and you start all over again asking for new quotations for another vehicle. This is extremely time-consuming and irritating for everyone. Fleetmanagement software offers a solution to this issue: With multi-bidding the vehicle procurement process can be largely automated.
Uwe Bauch, President community4you AG

What is multi-bidding?

Multi-bidding is one of the multi-supplier solutions. This solution substitutes the manual query for bids from different suppliers with a single central platform on which selected suppliers have already submitted various bids.

Multi-bidding software compares individually requested parameters, such as vehicle type, features, mileage, leasing period, etc. with the pre-defined data and determines the most suitable offer on the spot. Therefore offers can be collected and compared more efficiently. Flottenmanagement Magazine points out that the competitive forces between the providers involved in such platforms can lead to lower leasing costs than with a manual request for quotes.

What criteria should be considered while requesting an offer?

The article continues: „Leasing offers consist not only of the rate but also of numerous additional parameters such as service and logistics costs or excess/short mileage rates.“ Whether or not a lessor behaves in a fair way, while getting the vehicle back, for example, cannot be easily quantified or filtered. Thus, when making a comparison with multi-bidding procedures, it is important to consciously short-list providers - or leave them out.

Who can benefit from multi-bidding?

There are various possibilities for fleet managers who want to exploit the advantages of multi-bidding. Small vehicle fleets can use external service providers who use multi-bidding software to procure vehicles. On the other hand, for companies with a medium or large fleet of vehicles, which fully coordinate the procurement process internally, it is definitely worth purchasing their own software solution, emphasise the authors of Flottenmanagement.

community4you AG provides such a procurement software with multi-bidding function in form its vehicle configurator.
As an operator of an individual solution, companies with large procurement demands can not only take a more individual role in choosing suppliers but can often get even more special rates and reduce the leasing expenses considerably.
Lavinio Cerquetti, Vice President community4you AG
Vehicle procurement can be expanded with the web app for fleet users and lessees. This enables companies to provide their employees with a vehicle configurator that only lists vehicles and features which comply with their car policy. Both price and monthly rates can be calculated and shown immediately. Parameters such as mileage, leasing period, monetary value and much more can be adjusted and recalculated in seconds. This enables employees to work independently which not only saves time but also has an enormous motivating effect.

Read the original article in: Flottenmanagement 2/2020