The automotive consultancy firm seems to be right. Many of the less sophisticated contract hire companies could face financial difficulties if they do not keep up their investment in eBusiness solutions. As the Internet changes customer expectations and cuts procurement costs, the late adopters will be left behind.
According to epyx, contract hire companies must step up their use of online services.
According to Ken Trinder, the head of consultancy services at motor industry technology specialist epyx, contract auto hire companies with no real online infrastructure are an anachronism and will soon start to feel the financial effects. Mr Trinder’s words may seem alarmist, but he certainly has a point.
Most contract hire companies have taken a long look at the provision of online services, but have failed to recognize their long-term benefits and have based their commitment to investment and implementation on current sales and trends over the Internet.
Some leasing companies, meanwhile, have noticed the benefits of eCommerce, without noticing those of eBusiness. Providing quotes and closing deals online is only a small part of the benefits that the Internet can bring.
In particular, there are many sophisticated eTrading platforms available, covering key areas of expenditure and procurement. These platforms often provide quicker, better and cheaper methods of procurement, as well as often providing quicker and better ways of communicating with existing and potential customers. Unsurprisingly, they are attracting a large number of contract hire firms.
The changes to Block Exemption will put further pressure on contract hire companies, further encouraging online transactions as a means to target new markets and increase competition. The EU’s plans to favor the online car sales channel will inherently will have an impact on the fleet market, as well as on private customers.
So in short, companies using eBusiness will be able to improve their procurement strategies and their CRM abilities, offering fleets a better service and lower rates. The Internet will also help them reach a wider audience. This will allow them to outstrip their offline rivals.