Automotive Fleet
MenuMENU
SearchSEARCH

Finding Diplomacy Between Fleet and Procurement

There is a difference between procurement and sourcing, with the former being more tactical and shortsighted and the latter being more strategic and change-management oriented, and the dynamics between these groups and fleet can sometimes be contentious.

October 22, 2018
Finding Diplomacy Between Fleet and Procurement

True sourcing is based on a dynamic process and cost is only one part of a hierarchy of needs with the other parts being: assurance of supply, service, quality, innovation and sometimes regulatory, none of which can be sacrificed for cost. The team collaborates to determine the minimum needs as the basis for the sourcing process.

Photo courtesy of Deep Blue 4 You via Getty Images.

2 min to read


There is a difference between procurement and sourcing, with the former being more tactical and shortsighted and the latter being more strategic and change-management oriented, and the dynamics between these groups and fleet can sometimes be contentious.

True sourcing is based on a dynamic process and cost is only one part of a hierarchy of needs with the other parts being: assurance of supply, service, quality, innovation and sometimes regulatory, none of which can be sacrificed for cost. The team collaborates to determine the minimum needs as the basis for the sourcing process.

Ad Loading...

It’s a process that sets the stage for long-term strategic relationships, transparency, and the true value beyond cost. Essentially, reaching a point were both parties benefit from an engaged relationship that goes well beyond those initial cost reductions. The onset, however, usually begins with cost reduction as a significant attribute that results when the requirements of supply, service, and quality are understood and met, as often they are exceeded, unreliable, unstructured, or unmet in some fashion. There are many operational examples that support this.

It’s unfortunate that procurement generalists have run roughshod over some organizations, in the name of savings or even personal gain, while eroding supplier relations for the rest, said one anonymous fleet sourcing manager. He said he was fortunate enough to be category specific; but couldn’t help but think if the divide in fleet versus an embrace of sourcing isn’t perpetuating the generalist phenomena between fleet and business leaders seeking out category specific sourcing partners for their organizations.

“I hear the scuttlebutt from colleagues about the woes and friction between the two groups and I have a variety of perspectives there as well,” said the anonymous manager. “It’s really a shame on the dynamic, and I foresee the pendulum possibly swinging toward safety HSE organizations and I’ve seen that friction between fleet, procurement, and safety now as well.”

The other challenge is that negotiation and supplier management is a typical procurement function. Operations teams, not just within fleet, tend to feel this usurps their power in some way. Companies often don’t have well-defined or bought into RACI documents to help create clarity on who does what. Typically the crux revolves around decision rights. An RACI chart is a matrix of all the activities or decision-making authorities undertaken in an organization set against all roles.

Mostly far and away, this is a corporate issue within companies and not an external market issue. However, sometimes the suppliers can play the groups off one another or have a loyalty to one group or another which exasperates the situation. 

Ad Loading...

Editor's note: This guest editorial was written by an industry professional who wished to remain anonymous.

Subscribe to Our Newsletter

More Operations

A shot of a Volvo electric vehicle with a man charging it in front of a residence.
SponsoredAugust 1, 2026

Top 50 Executive Fleets

It is that time of year again! Time for the 2026 list of the Top 50 Executive Fleets, presented by Automotive Fleet and Volvo as part of its annual Fleet 500. Download now to see this year's list of companies!

Read More →
Gary Van Orden Retirement
Operationsby Jeanny AbrahamJuly 31, 2026

Gary Van Orden Retires After Nearly Four Decades in Commercial Fleet

From answering customer calls at Ford Motor Company to leading fleet sales across multiple OEMs and a fleet management company, Gary Van Orden's career reflects nearly four decades of leadership in commercial fleet.

Read More →
an Automotive Fleet podcast thumbnail
OperationsJuly 31, 2026

How Stellantis Plans to Get Ahead of Fleet Downtime

Vehicle acquisition may grab the headlines, but fleet uptime increasingly determines operating success. Darren Bradshaw of ‪Mopar‬ North America gives the details.

Read More →
Ad Loading...
A lineup of Hyundai vehicles with overlay text announcing the 2027 Commercial Fleet Program, highlighting new fleet incentives for eligible commercial and government buyers.
Operationsby News/Media ReleaseJuly 31, 2026

Hyundai Releases 2027 Commercial Program Incentives 

The 2027 Model Year "Fleet Street Incentives" are available to commercial and government fleets.

Read More →
Chris Brown of Automotive Fleet and Lauren Fletcher of Work Truck pose beside a Soap Box Derby car in a Team Brown vs. Team Fletcher race graphic benefiting The Hourglass Foundation.
Operationsby News/Media ReleaseJuly 30, 2026

It's All Downhill from Here! Fleet Industry Raises $22,000 for Skilled Trades Scholarships

Work Truck’s Lauren Fletcher and Automotive Fleet’s Chris Brown turned a friendly racing rivalry into $22,000 for automotive technology and skilled trades scholarships.

Read More →
Commercial Fleet
SponsoredJuly 23, 2026

The Top 300 Commercial Fleets

The Top 300 Commercial Fleets: See the List

Read More →
Ad Loading...
Cover of the "Top 50 Green Fleets" report presented by Automotive Fleet and Inspiration Fleet, featuring an aerial nighttime photo of a lit highway interchange with looping ramps.
SponsoredJuly 16, 2026

The Top 50 Green Fleets

The List Is in: The Top 50 Green Fleets

Read More →
A car dealership with added inscription "Every fleet vehicle eventually becomes local."
Operationsby Chris BrownJuly 15, 2026

Your Local Dealer Knows More Than You Think

Your local dealer can provide an information advantage that extends well beyond courtesy deliveries.

Read More →
Portrait of Austin Schutte, founder and CEO of Anew Solutions, featured in Automotive Fleet's Fleet Meets series highlighting his career, leadership philosophy, and fleet industry insights.
Operationsby Faith HowellJuly 14, 2026

Fleet Meets: Austin Schutte

Here are some industry insights, personal touches, and words of advice from the CEO and Founder of Anew Solutions.

Read More →
Ad Loading...
Photo of Team Brown building soap box derby
Operationsby Chris BrownJuly 13, 2026

Soap Box Derby Challenge: What’s Powering Team Brown

The car is coming together, the students are solving real build problems, and the fleet industry is helping push Team Brown toward the starting line.

Read More →