Managing fleet supply

Market conditions

Supply chain issues for semiconductors are impacting the global production and supply of vehicles. Public sector fleet is not immune, with the purchase and lease of new vehicles delayed in delivery, and vehicle rentals also affected.

The impact is likely to last until, at least the start of 2022, and we set out below an update and guidance on how fleet managers can manage vehicle supply.

What CCS is doing

CCS will continue to monitor the situation across manufacturing, lease, fleet management and rental sectors – liaising with suppliers and key trade bodies on the latest position. 

We are asking our rental suppliers to make more vehicles available for hire, where possible. We are also asking them to prioritise those vehicles needed for operational roles in the public sector and to provide you with regular updates.

Suggestions for fleet operators

Review your vehicle replacement strategy

Consider extending vehicle lease contracts and defer vehicle replacements. Suitable vehicles for extension are those with low mileage and low cost maintenance. 

Engagement with suppliers

If you need to order a new vehicle or to hire a vehicle, let your supplier know that the vehicle is needed as a priority. Be aware of lead times and order any new vehicles in good time.

Make the most of your fleet

Consider which journeys are essential and, where they are, try to make the most of the vehicles you have available. Options could be to meet virtually instead of travelling; to use public transport; or to ask staff to book from your pool of vehicles.

Advice on booking hire vehicles

Give clear guidance to colleagues who book your vehicles. Ask them to hire vehicles only when absolutely necessary and to book early as there is high demand. 

Using grey fleet

In the current situation, you might want to ask your staff to use their own vehicles for business. These vehicles will then become your grey fleet. And, on a temporary basis only, we would support a flexible approach to the usual mileage threshold recommended in our grey fleet policy.

But, when using grey fleet, you must make sure:

• you have a clear policy on travel and subsistence costs, agreed by your fleet and HR teams
• you manage safety and cost risks – making sure that grey fleet staff have the relevant vehicle insurances, driver licensing, vehicle maintenance and MOTs. 

Find out more

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If you need any further information on the above please feel free to contact our fleet experts.