FleetCheck has released a new tool, Contract Manager, to prevent the automatic renewal of rolling fleet supplier contracts.
Contract Manager will be added at no cost to our core fleet management system during the first quarter of 2018.
Peter Golding, managing director, said that rolling contracts are often poorly monitored by fleets and could cause additional costs.
“A lot of fleets sign rolling contracts for everything from telematics to breakdown recovery,” said Golding.
“They work on the basis that, unless the customer contacts the supplier within the last few months of the contract to cancel they just keep renewing, usually for a further 12 months.
“There is a tendency to just let them continue but this has definite disadvantages. Firstly, the contract often changes when it renews, including amendments such as price increases, and secondly, there may simply be better deals available elsewhere in the market.”
“This is a simple idea but one that will provide an essential prompt for fleets so that they can properly assess whether they are happy with their current supplier or otherwise. It helps to put some of basic tenets of purchasing best practice in place.
“We will be introducing this new feature early in 2018 and expect it to be effective in helping our fleet customers, especially SMEs, to more effectively manage the fleet contracts that they sign.”