Supply chain management

Last year, especially in the second half of the year, car delivery times doubled or tripled, often exceeding 9 or even 12 months, resulting in price indexation and the disappearance of volume discounts traditionally offered by manufacturers and dealers. Inflation has become present in several categories of costs that make up the monthly rate of full service operating leases: insurance, maintenance, tires, replacement car, administration costs. Against this backdrop, our operating lease product has become increasingly attractive, as customers understand better than ever that a long-term fixed-cost contract is a form of inflation protection, that outsourcing done right has multiple benefits, and that their businesses can be more agile if they focus on core business.

At the same time, as a result of delivery delays of new cars and uncertainties in the market, companies have appreciated more the flexibility of short- and medium-term rental solutions to meet immediate mobility needs.

At the end of last year, we started an innovative project for one of our clients, Corporate Car Sharing, aimed at making the use of the company’s fleet more efficient. We believe that the potential of this solution is high in Romania and will be adopted by other Autonom customers, as more than 70% of the time company cars are not used, and a more efficient use will have a cost-saving effect on the company, but also a positive impact on the environment through sustainable use.

Following the definition and implementation of the Sustainability Strategy, the year 2021 also marked certain changes in the selection of suppliers. We started looking for national partners, for cost optimization and greater transparency, monitoring and traceability of business links. We have also become much more attentive to the impact our partners, in turn, have on society and the environment. We will work with those suppliers who exemplify professional ethics and make progress in managing social impact and environmental protection.

In choosing new suppliers, we have also introduced environmental and social impact criteria. As the strategy was actually implemented towards the end of the year, the data for 2021 are partial and indicate that approx. 6% of our suppliers were also assessed on environmental and social criteria. There are also 3 protected units in the list of approved suppliers.

Almost all of our suppliers are local (national), except for the automotive sector, where we also had intra-EU suppliers. The total expenditure with local suppliers of fixed assets (car purchases + leasing) amounted to RON 292.18 million in 2021, and the expenditure allocated to miscellaneous suppliers amounted to RON 92.72 million. The euro equivalent of RON 6.32 million was directed to external suppliers.

We also pay special attention to the partnerships that ensure that the current activity is carried out as well as the safe and environmentally sound disposal of the resulting waste (household, selective collection, tires, oil, DEEE). For more details please see Circular economy and Waste Management Section.

In the value chain scheme briefly presented above, in which we have identified supporting and primary activities at the level of Autonom. Optimal management of all these resources, the links between them and potential risks translates directly into the success of our business and profit generation.

The company purchases vehicles from more than 50 vehicle manufacturers and distributors and is dependent on supplying popular, high-quality vehicle models in sufficient numbers to maintain operations and purchasing them on attractive terms. There is no assurance that the Company will be able to maintain a long-term relationship with these manufacturers and distributors that provides certainty regarding the Company’s future purchases of vehicles, and the Company may have difficulty in replacing these manufacturers and distributors with other suppliers who will deliver the vehicles required for the Company’s business on the same favorable terms.

The COVID-19 pandemic has generated a global shortage that is anticipated to continue in the semiconductor and chip industry and therefore in the automotive production and supply chain. It is possible that the Company’s manufacturers and distributors may experience significant delays in the delivery of vehicles ordered by the Company. As a result, the Company may face a reduced ability to renew its fleet within the time frames set out in its contracts with its partners and at a level commensurate with changing demand. Any limitation on the Company’s ability to renew its fleet may lead to increased vehicle uptime and a decrease in customer satisfaction with the vehicles meeting expectations. At the same time, an extended operating life of the vehicles may have a negative impact on the second-hand selling price of these vehicles.