Research On Decision Making Of Fleet Service Outsourcing For Enterprises

Fleet service for employees in enterprises plays an important role in the supporting function, it makes traveling convenient, represents the image, and influences the operational flexibility according to its link with the core business of the enterprise. In recent years, with the acceleration of urbanization and the expansion of enterprise scale, the demand of staffs official and transport cars increases a lot, but the existing car ownership in China is difficult to fully make ends meet. Car rental market’s prosperity and the development of service outsourcing industry brings a "make or buy" problem to the enterprise decision makers.The author discusses the outsourcing decision-making process of employee’s fleet service, refines a three-dimension decision-making framework through the pros and cons analysis of car renting and buying, helps the managers consider core competence, long-term cost and business complexity when deciding whether to outsource fleet service or not. To the enterprises which adopt the outsourcing way, the author designs a two-stage vendor selection model, combining the characteristics of the car rental service, to assist them select suitable partners using DEA screening and mathematical programming. At the last part of the paper, the applicability of the proposed framework and optimization model are verified by tracking a multinational foreign company’s outsourcing case.