1. Prepared for: NAFA New England March 18, 2015 Prepared by: Rick Odell Indirect Spend Manager PerkinElmer, Inc

2. Best in class sourcing processes includes a six-sigma type process. Fleet Management and Procurement need to collaborate:  Document Current Situation: ◦ Fleet Attributes/Current financing and service T&Cs ◦ Company Objectives for next 3-5 years for fleet and fleet management ◦ Determine baseline spend for each cost component and in total ◦ Identify stakeholders and recruit representatives for the ‘core team”  Conduct Kick Off Meeting with Stakeholders  May include Fleet Management, Legal, Health & Safety  Finance, Sales, Service, HR, IT ◦ Sourcing Process/Project plan ◦ Roles and Responsibilities ◦ Determine Hot Buttons required from Stakeholders ◦ Determine any 360 degree relationship-bidder may be a customer

3.  Supply Market Research ◦ Determine supply base that can provide required services:  Network with peers, industry colleagues, internal stakeholders (ask the fleet manager)  Google (start here if you know nothing, be sure to differentiate between leasing and management companies versus technology companies)  RFI to prequalify and select FMCs to participate,  Meet with all bidder representatives  Ongoing-keep perspective on competitive landscape  meetings with FMCs to understand momentum of each organization over time

4.  Develop a Qualitative and Quantitative Document ◦ If not using online RFx solution use “MS WORD” type document ◦ Be sure to understand” “Must Have’ requirements from core team stakeholders to assist in weighting bidder responses to the qualitative questions  Qualitative  Scope  Objectives  Timeline-Recommend 30 days to respond  NDA-May be required if fleet is part of core business  Fleet Attributes  Size, Type, Replacement Policy  Pricing terms defined

5.  During core team meetings develop weight scale for response evaluation ◦ ie. Company Profile may be 20 points out of 100  Qualitative-Cont’d  Questionnaire  Company Profile  Sustainability/Ongoing concern  Account Management  Strategic & Tactical  Request resumes  Differentiators  Technology  Fleet Administrator  Reporting  Driver portal  Mobility

6.  References ◦ At least 2 references for current clients ◦ At least 1 from a former client ◦ Used on finalists  Qualitative-Cont’d  Implementation  Resources  Project Plan  Cost  Signing/Stay-on Bonus

7.  Pricing-Use “MS Excel” (even if using online solution) ◦ Total Cost of Ownership  Net Purchase Price  Financing  Rate  Admin fee  Current fleet attributes to be provided  Lease term in months (36, 42, 48, etc.)  Average Capitalized Cost  # of vehicles  % driver purchases

8.  Pricing-Cont’d ◦ Services: Unit of Measure to be stated (i.e. per unit or per month) Allows “apples to apples comparison ”  Fees  Management  Maintenance  Fuel Management  Registration Renewal  Accident Management  Remarketing  Employee Sale  Rebates:  Fuel  Tires and Maintenance ◦ All of the above required to determine annual total cost

9.  RFP Published/Distributed ◦ Request Receipt Confirmation or Follow-up to ensure receipt ◦ 2 Weeks for Q&A ◦ Responses in 30 days  Response Evaluation ◦ Side by side comparisons  Qualitative-Using scoring criteria established with stakeholders  Quantitative  Including Implementation for total cost  Review with Stakeholders  Consensus  Final Due Diligence  Finalist presentations, technology demonstration site visits, etc.

10.  Contract ◦ Ensure final negotiated terms ◦ Detailed service level with measureable key performance Indicators (KPIs) ◦ Confirm economic terms-Watch out for exclusivity, guarantees and ensure language to mutually agree on new services and pricing. ◦ Legal Review ◦ Execution  Post award-Take calls from bidders not awarded-allows them to understand where they may need to improve  Implementation ◦ Kick-off ◦ Roles & Responsibilities ◦ Project Plan  Financing and Services agreements may have different timeframe

11.  Monthly Reporting ◦ Activity/Status ◦ Billing  Quarterly ◦ Attributes ◦ Project Status  Annually ◦ Client-Company Profile Update ◦ FMC-Company Profile update ◦ Strategic Objectives Defined ◦ Project plans to meet goals