Here’s What Fleets Need to do to Reduce Total Cost of Ownership

Posted in Fleet TCO on October 16, 2015

More fleet managers are concerned about total cost of ownership (TCO), according to surveys that Frost & Sullivan has conducted over the past five years.

The maintenance and repair process is one key area that can have a tremendous impact on TCO. Inefficiencies in this area have far-reaching ramifications throughout the fleet.

If you're still using a manual processes to track, manage and measuremonitor maintenance and repair events, you're most certainly paying for repairs you didn't authorize and missing out on warranty coverage. You're also likely creating additional work for team members because they have to sift through paperwork, use multiple systems and portals to re-enter data and/or find estimate, authorization and warranty-related documentation.

The Importance of Preventive Maintenance

Proper maintenance plays a key role in vehicle safety. A good maintenance system should alert you to outstanding repairs, recalls, service campaigns and upcoming preventive maintenance (PM) service. Well-maintained trucks are less likely to receive CSA violations and fines in the Maintenance BASIC category, which accounts for nearly two-thirds of all CSA violations.

Downtime Really Hurts

Downtime is expensive, costing between $750 and $1,500 a day, according to some estimates. But those figures may not accurately reflect the true cost of downtime. Things like rentals, safety stock and even hiring third-party contractors to make sure loads get delivered add significantly to the cost of downtime.

Better Visibility and Accessibility Drives Efficiency

A Service Relationship Management (SRM) system improves the efficiency of your maintenance and repair process so downtime is reduced and warranty dollar recapture is improved. Also, you achieve a new level of fiscal management by ensuring estimates are electronically approved, and that estimates and invoices matches.

A good SRM system provides visibility into the maintenance and repair process no matter where the work is done. It monitors service events and automatically keeps you updated on status. In addition, it gives you tools to find high-risk service events in real time to improve your decision-making and focus.

Plus, an SRM system streamlines communication and collaboration during service events. Much of the time attributed to a repair — 65 to 90 percent — is not spent turning wrenches. With an SRM system, access to the right information in the context of that specific repair eliminates wasted time and unnecessary phone and email tag.

TCO is impacted by a number of factors. By improving your maintenance and repair process you can make great strides in lowering your TCO.

Take the Next Step

To discover how an SRM system can help reduce your TCO, download our whitepaper, Beyond Cost-Per-Mile: The Right Metrics to Measure Fleet Health.

Topics: Fleet TCO