It may not be possible to identify every hidden cost or reduce every soft cost, but being aware of the sources of these costs can help fleets make measurable progress.
Procurement’s Fixation on Hard Costs Misses Larger Soft Cost Savings
Procurement initiatives to reduce fleet cost structure primarily focus on hard costs with secondary consideration given to soft cost reduction. Some procurement teams often don’t appreciate the sizable impact of soft cost reductions and how they can lead to larger hard cost reductions.