Fleet Management

Companies depend on fleet vehicles to conduct everyday operations – whether it is trucks, cars they need to be maintenanced. The cost of vehicle maintenance coupled with taking vehicles and drivers out of service may regularly leave a negative impact on your service levels and profits.

Maximizing profits is the biggest goal for any business. These days, fleet managers are constantly under pressure to reduce the cost. For successful fleet management it is critical to understand all of the factors that go into your fleet costs.

The total cost of ownership of your fleet is made up of the purchase price of your assets and the cost of your operations. It is common sense for businesses to consider their Total Cost of Ownership (TCO) when making investment decision, and it is especially important when you are looking to understand your fleet management costs.

Effective cost management starts with completing an extensive fleet management cost analysis

Define the key metrics you want to measure and keep track of, such as utilization, cost per unit/vehicle and depreciation

Know your fleet’s primary costs,
which in most cases should be:

Vehicle price and associated interest
Operating costs
Maintenance costs
Downtime costs
Driver costs

Define driver costs for each of the key metrics that you will be following.

The methods for reducing fleet costs and TCO will be different for every fleet, but the following three main areas are proven to help reduce vehicle fleet TCO

Fleet asset management

Take a closer look at your asset costs and any updates or changes needed.

1. Right size for your fleet. You may be in possession of too many vehicles or not enough of them for your fleet. Completing a utilization analysis of your fleet is a big help in determining the optimal number and types of vehicles needed

2. Order from a single manufacturer and aggressively negotiate fleet incentives

3. Replace old vehicles and optimize your replacement policy. You will have to determine at which point it makes sense to financially replace old vehicles that may be inflating your repair costs.

Get In Touch

571-370-4031

Location

Tysons, VA

Email

[email protected]

Hours