ARI has introduced the Vehicle Replacement Prioritization Tool that provides fleet managers with direct, online access to data that helps them decide when to replace a vehicle, the fleet management company has announced.
This new technology from ARI helps companies gather and analyze data from their fleets to create a ranked list of which vehicles in their fleets should be replaced first. The analysis, which is customizable for each client, takes into consideration factors important to the operation of each fleet; prioritizes the replacement needs of the entire fleet; and recommends the order of replacements that optimize total cost of ownership.
The ARI Replacement Prioritization Tool analyzes eight criteria, including age, mileage, maintenance expenses (for the last year and over a vehicle's lifetime) and total downtime. It also accounts for how important a vehicle is to the operation of the company. For example, critical vehicles like a crane or a specialized work truck without a back-up would be prioritized in the system. It also takes into consideration the lead time for replacement and the availability of like-kind rentals in the ranking process.
Companies tend to err on the side of caution, keeping vehicles in their fleets too long, according to Tony Candeloro, vice president of product development and client information services, which means they are sinking too much money into maintenance costs.
"Being able to recognize the tipping point of when it makes financial sense to replace a vehicle instead of maintaining it has been a consistent challenge for fleet managers," Candeloro said. "In recent years, they have been able to get a better grasp on the matter through information provided by their fleet management companies. But this marks the first time fleet managers have direct access to this information to help them make these important decisions in a timely manner."
Upon running a Vehicle Replacement Prioritization report through ARI insights, clients will have a ranked list of which vehicles they should replace first, based on the priorities they determine when setting up the system. Users can drill down into the report to see how each vehicle ranks in a particular area. Fleets can rank vehicles by geographic region or company hierarchy and users can see how each vehicle's ranking has evolved over time. A company can simply start at the top of the list, replacing as many vehicles as its budget allows.
The ARI Vehicle Replacement Prioritization Tool is available as a value-added benefit to current ARI clients upon request. ARI team members will work closely with their clients to ensure the system is set up properly so the ranking aligns perfectly with each company's priorities.