Discussion at Fleet APAC Expert Gathering Shapes Perspective Towards Realistic Approach Among Asian Naval Experts
In the dynamic world of fleet management, sustainability and local market considerations are taking centre stage, particularly in the Asia-Pacific (APAC) region. This shift is particularly evident in countries like the Philippines.
Diversifying Sourcing Strategies and Localization
Effective solutions for local fleet sourcing and procurement challenges in the APAC region involve diversifying sourcing strategies, tailoring the Request for Proposal (RFP) process to local market conditions, and understanding unique country-specific requirements.
In light of ongoing supply chain disruptions, fleet operators and Maintenance, Repair, and Overhaul (MRO) services are increasingly working with multiple suppliers, including Original Equipment Manufacturers (OEMs), aftermarket vendors, lessors, and teardown specialists. This approach helps reduce lead times and risk.
Vendors and fleet managers are also exploring localized supply chains and alternate manufacturing to mitigate import delays and geopolitical risks that impact component availability in Southeast Asia, including the Philippines.
Adapting the RFP Process
In drafting RFPs, it's crucial to prioritize supplier resilience and flexibility. This includes evaluating factors such as supplier lead times, inventory management capabilities, contingency plans for disruptions, and digital integration for tracking order status—enabling faster, smarter procurement decisions.
Understanding Local Market Dynamics
Understanding unique market dynamics in the Philippines and neighbouring countries is key. For instance, the Philippines faces typical Southeast Asian challenges such as port congestion and logistics bottlenecks that delay parts delivery. Factors like fluctuating fuel costs, driver shortages, and regulatory requirements also affect local fleet operations. Tailoring contract terms and service-level agreements to account for these constraints enhances supplier collaboration and operational uptime.
Leveraging Digital Tools
Implementing digital tools and automated business processes, such as smart email handling, automated marking, and instant proposal response, can streamline the RFP process and vendor communication, as shown in related industries.
Considering Total Cost of Ownership and Sustainability Goals
As fleet upgrades, such as the shift towards more fuel-efficient or electric vehicles, gain importance, it's essential to include life-cycle cost analysis and environmental impact criteria in procurement decisions.
Prioritizing Employee Safety
Raluca Mosu, Ganna Proshak, Ruangthong Kitmongkoludom, and Ankur Sharma have emphasized the importance of prioritizing employee safety above all else. This principle should guide all decisions in the fleet management industry.
Balancing Costs and Local Circumstances
Achieving strategic targets such as safety or sustainability often comes with increased costs, as entry-level models may lack the necessary features. Decisions regarding cash, lease, or purchase should be made in consideration of local circumstances.
Open Communication with Suppliers
Open communication channels with suppliers are considered critical by fleet managers. This enables them to address issues promptly and maintain a smooth-running operation.
Harmonization of Services
The transition towards a more sustainable fleet may involve increased costs. Global preferences for Operating Expense (OPEX) or Capital Expense (CAPEX) influence these decisions. Harmonization of services is a recognized need in the fleet management industry to facilitate this transition.
In conclusion, effective procurement in APAC—and specifically in the Philippines—requires a multi-pronged approach that reduces dependency on single suppliers, accelerates responsiveness through digital tools, and deeply integrates local market realities into the RFP process to maintain fleet uptime and operational efficiency amid ongoing supply chain disruptions.
In the context of fleet management, it's vital to consider the Total Cost of Ownership (TCO) and sustainability goals when upgrading fleets, such as the shift towards electric vehicles, to align with market trends in the Asia-Pacific (APAC) region, specifically the Philippines.
Effective RFP processes should prioritize supplier flexibility and digital integration, addressing local market dynamics in the APAC region, like port congestion, logistics bottlenecks, and fluctuating fuel costs. This tailored approach will enable faster, smarter procurement decisions and harmonization of services in the fleet management industry.
