Truck lifecycles can be calculated to the mile and the dollar. This can help fleets replace vehicles at the optimal moment.
GE Capital Fleet Services announced $460 million in identified customer cost savings for the full year of 2012, with accelerated and optimal replacement analyses cited as the leading areas for savings.
To determine whether an extended warranty is right for your fleet, review vehicle usage, lifecycles, and replacement policies.
The cliché in fleet management is that trucks are kept in service until the wheels "fall off." In many cases, this isn’t too far from the truth. Typically, the more expensive the asset, the longer it will be kept in service, especially units upfitted with expensive auxiliary equipment. However, as study after study shows, extended truck replacement cycles often have the unintended consequence of resulting in greater long-term expenses and degradation in worker productivity.
Nearly all fleet-related expenses, both fixed and operating, are influenced by when a vehicle is taken out of service. A growing number of fleets are shifting to more flexible vehicle replacement cycles. Some fleets no longer call their replacement cycle a policy and instead call it a “guideline.” They want to reserve the right on determining when to take a vehicle out of service based on prevailing market conditions rather than predetermined mileage and months in service.
At Scotts Lawn Service, reducing preventive maintenance is the current priority according to the company’s new Fleet Manager Scott Mayo.
Some call it thinking out of the box, pushing the envelope, or just plain breaking the rules. “Common wisdom” isn’t always the best way to keep a fleet running cost efficiently.
A decrease in average tire expenses helped offset slight cost increases for higher frequency of repairs and preventive maintenance.
Lengthening vehicle replacement cycles significantly affects such bottom-line important issues as fleet maintenance budgets, fuel economy, resale values, safety and ergonomics issues, company image, and driver morale.
With budget constraints encouraging more fleets to be creative with their cost-cutting strategies, fleets in many business sectors are experimenting with extended cycling. Read on to find out the advantages and disadvantages.