Who owns your equipment leasing spend? At most companies the answer is “no one.” The average Fortune 500 company leases between $100M and $1B in equipment. However, in most procurement organizations, no one is accountable for analyzing or managing spend around equipment leasing.
We can help you formalize equipment leasing as a spend category. We will give your various category owners (Material Handling, Office Equipment, Fleet Management) the tools they need to better analyze spend.
Capture Millions in Savings
You leverage competition to optimize the purchase price for equipment like forklifts, laptops, and trucks. Why not use the same principles to generate more competitive financing terms for your leases? Instead of settling for whatever rate the vendor captive’s finance arm or your house bank offers, why not put the lease in a competitive bid process?
Our Equipment Lease Sourcing software can save you 6-8% on leasing costs by simply applying the basic principles of procurement to leases. We’ll put an RFP out to a community of 500+ lessors who will competitively bid for the right to win your business.
Stop Leakage at End of Term
Your procurement organization works hard to generate savings on big equipment deals. Sadly, many of the hard-fought savings you negotiated during the sourcing process are being lost through inefficient management of equipment at the end of its lease. Why? Because most companies do not have a process for managing “the end of term.” Instead of exchanging the equipment for newer models at the end of the term, many organizations “do nothing.” They pay well past the end of term — the equivalent of 125% or 150% of the purchase price.
Our Equipment Lease Sourcing software can help reduce your end of term leakage by 10-15%. We’ll track every piece of equipment from furniture and phones to computers and copiers. We will notify you six months in advance of the end of term for any lease so you have ample time to decide if you want to renew the lease, buy the equipment, or return it. We’ll help you put an end to evergreen fees so your negotiated savings turn into realized savings.