November 2009 - Comments from Northgate sales director Gareth Jones for Van Fleet World short-term rental feature
"The traditional seasonal demand for additional temporary vehicles is coming through as in previous years despite the economic conditions.
"Organisations including the Royal Mail, High Street chains with home delivery operations and food and drink specialists are all taking delivery of additional vehicles on short-term hire as the build-up to the festive season kicks-off.
"However, this year the focus is more than ever on price. Since last year vehicle manufacturers have increased their list prices, model availability has been reduced and rental companies have also increased hire charges. As fleets look to negotiate on price some are reluctant to immediately confirm vehicle orders.
"However, while price is important - and Northgate is as competitive as any rental company in the marketplace - consistency of vehicle supply and service - especially at a time when demand for these vehicles is high, should be a key priority for organisations sourcing vehicles on short-term hire.
"Ultimately, I believe that companies that decide to go for multiple suppliers as they build up their seasonal fleet will see their vehicle operating costs actually rise.
"Opting to take delivery of vehicles from a string of rental providers will inevitably lead to inconsistency of product and service resulting in potentially large end-of-hire wear and tear and vehicle damage charges and significant administrative hassle.
"Continuity in the supply chain by sourcing all vehicles through one supplier delivers a consistent quality of vehicle and service and consistency on defleet. All of that aids administrative simplicity and, importantly, drivers know who to contact if they require help.
"Vans, particularly those added to fleets to meet seasonal demand, typically have multiple drivers who switch from vehicle to vehicle. A multiple supply policy simply adds to driver confusion in the event of an emergency when they are already undoubtedly facing a tight delivery schedule.
"As a result, far from controlling costs, businesses are likely to find the complexity of vehicle supply arrangements by playing rental companies off against each other or using a broker and going down the multiple supplier route will increase fleet operating costs."
Looking to the future, Mr Jones said: "Vehicle list prices are likely to continue to rise and an increasing number of rental companies will have limited funding to secure new vehicles. That will lead to an ageing of the average fleet run by most rental providers.
"At Northgate, we have agreed funding in place through to 2012 and this financial year the company is committed to buying more than 15,000 new vehicles.
"All of our vehicles are serviced and maintained in our own workshops giving our customers a nationwide support infrastructure to keep our modern vehicle fleet on the road."
