5 Reasons to Centralize Your DEF Procurement

In the world of fleet management, efficiency isn’t just important—it’s a must. Imagine a busy distribution company trying to handle Diesel Exhaust Fluid (DEF) supplies at different centers, with each location having its own way of getting DEF, leading to a messy mix of storage methods that slow operations down and increase costs. But there’s a solution: DEF Centralization.

Every step of fleet management works like a puzzle piece. One important part that often gets overlooked is DEF. With the need for DEF going up and rules about using it getting stricter, businesses centralizing DEF can save money and streamline operations.

Picture the same distribution company adopting uniform storage containers for DEF across all locations. This change, which could include 330-gallon totes for most locations, larger ones for high-traffic areas, and heated options for colder regions, would simplify their operations and contribute to cost reduction. Additionally, with the aid of monitors to track levels and automatically reorder DEF when necessary, managing their DEF supply would become a breeze.

What is DEF?

DEF is a mixture of urea and water used in diesel vehicles to clean up harmful emissions. It’s injected into the exhaust, where it turns bad gases into harmless nitrogen and water. This technology, called Selective Catalytic Reduction (SCR), was introduced by vehicle makers to meet EPA rules in 2010. With annual demand surpassing 1 billion gallons in North America and showing consistent growth, the need for efficient DEF procurement strategies has never been more important. You can learn more about DEF here.

Here’s why businesses should centralize their DEF procurement

1. Streamlined Reporting and Analysis

In today’s data-driven environment, insights are key. Centralizing DEF procurement allows tracking all transactional data across sites, facilitating comprehensive reporting and analysis. By understanding consumption trends, seasonal variations, and optimal delivery schedules, operations can proactively manage purchasing efficiency and reduce costs over time.

2. Leveraging Total Spend

Pooling purchasing power offers significant advantages. Centralized procurement enables organizations to negotiate favorable terms based on aggregated volume, unlocking bulk purchase discounts and favorable pricing structures, maximizing cost savings across the board.

3. Operational Efficiency

Centralizing DEF procurement simplifies operations by consolidating vendors and standardizing processes. With a single point of contact for DEF needs, you can establish a standard set of equipment options that can be deployed quickly. Additionally, centralized vendors can manage keep-fill schedules enterprise-wide, minimizing downtime and operational risks during supply disruptions.

4. Lower Equipment Costs

When you adopt uniform equipment solutions across all sites, you can streamline processes and minimize equipment costs. Centralized vendors offer options tailored to specific operational requirements, optimizing functionality and affordability. Also, outsourcing equipment purchases to centralized vendors allows cost amortization, ensuring long-term viability without upfront financial burdens.

5. Reduced Administrative Burden

By centralizing your DEF spend with a single vendor, you’ll have direct administrative oversight and accountability with a single party. When a supply issue or emergency situation occurs, you won’t need to spend time coordinating a response across multiple different vendors. With one call, you can be confident that your entire DEF program will be covered.

By embracing centralization, organizations can unlock operational efficiencies, maximize cost savings, and ensure consistent DEF supply. While it may require initial investment and strategic alignment, the long-term benefits outweigh the challenges.

Are you ready to streamline your DEF procurement and maximize savings? Contact Mansfield today to learn more about our DEF solutions and how we can help optimize your fleet operations.