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Public sector fleets have been urged to exercise caution over large-scale collaborative procurement schemes, with one industry authority predicting they would be "an unmitigated disaster".
A panel of experts at the Future of Fleet conference run by Automotive Leasing did not believe forcing bulk-buy agreements on the public sector would work, despite the Government's push to significantly cut public sector costs.
"Competition is best," said James Russell, executive director of Sector Treasury Services, part of public sector advisor Captia. "A single buying scheme will be an unmitigated disaster."
"People outside the motor industry think that if you go from one council to 30 councils, car makers will lower the cost of a car by 20%."
His comments were echoed by fellow consultant Roger Ashman of Gloucester Wheels: "One size won't fit all. Fleets should look at their own requirements. Forcing public sector fleets down a single route will be a disaster."
The theory behind framework agreements or collaborative procurement deals is that if fleets club together they can gain a higher volume discount and cut administration compared to going alone. But the panel of speakers at the event warned that public sector fleets could often negotiate more suitable and more cost-effective agreements with suppliers on their own, rather than buying in to a framework agreement.
Tom Hall, from IT outsourcing specialist Atos Origin, said: "Forcing frameworks isn't going to work. Fleets have to look at how to drive savings from them. Frameworks can work but have to be set up properly."
He added that public sector fleets should review all the agreements that are available and only use the ones that work for them.
Stuart Walker, boss of Automotive Leasing, said framework agreements were one of the hottest topics for public sector fleets: "The debate around frameworks, and about what's the best step from now on, is very interesting.
"Framework agreements are the elephant in a room where the lights are off. No one's turned the lights on yet to see the whole problem."
Ian Webster, fleet manager for the British Geological Survey, asked the panel how he could best overcome a framework agreement that he was being forced into that would be more expensive than his current servicing arrangement.
"You've got to prove the point," advised Russell. "Put the figures on the chief executive's desk and ask for the extra funding. They won't be able to justify it."
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