The network, which comprises just 11 dealer groups and dealerships, covers all major marques and with a set of new contractual agreements.

The new initiative is being seen as delivering a number of major benefits for Fleet Logistics’ UK fleet customers, including contracted KPIs to measure dealer performance, better dealer discounts and rebates, and a number of process efficiencies including reduced delivery times, improved service levels for drivers plus a new programme of demonstrators.

If successful in the UK, Fleet Logistics, which has more than 180,000 vehicles under contract in 27 countries worldwide, plans to roll out the preferred dealer network initiative to a number of its major European markets, including France, Belgium and Germany. A similar system already exists in the Netherlands.

Fleet Logistics’ head of UK and Ireland, Sue Branston, said the new initiative was designed to formalise the existing dealer network that Fleet Logistics already had in place in the UK and to complement some clients’ desire to maintain their choice of dealer.

“This is one part of a new supply chain strategy that we are developing for our markets in Western Europe and beyond.

“We have been operating with an informal preferred dealer network in the UK for some time now. But this new arrangement puts it on a more formal footing with new terms and conditions, service levels and KPIs.

“We believe that, as a result, it allows us to more effectively leverage our buying power based on the scale of orders our customers place in the UK, leading to improved service levels, dealer discounts and better prices for our customers,” she said.

Ms Branston added that the new network would speed up the new car ordering process significantly, depending on the vehicle ordered, and would improve the channels of communication and accuracy of vehicle specification checks.

“The new set-up will also increase our control over service delivery to ensure that our customers and their drivers receive the best service levels possible, including a closer relationship with the driver. We will be able to measure the dealers’ performance more effectively as a result, and change any dealers that are not meeting the contracted standards,” she added.