If you are not taking a closer look at your fleet’s total cost of ownership, well you are more likely losing your hard-earned money. Total Cost of Ownership is the cumulative cost incurred at the asset level from its acquisition to disposal.
Now, we will share with you how to establish your Fleet cost analysis and how an FMS (Fleet Management Solution) is an essential partner to meet this goal.
How to establish your Fleet Cost Analysis?
With your large number of fleets, doing this type of analysis is a struggle. It's challenging to get the data you need on your own and at a glance. To have this data, you would need to:
Take into account the full history of your current vehicles.
Consider the effects of inflation and fluctuating interest rates, and how those affect costs.
Estimate the lifetime fleet maintenance costs.
Find a way to access the future market value of your vehicles.
It's no small task.
That is why some companies weren't able to undertake consistent analysis on their own. And this is why having a Fleet Management Solution is a great benefit.
"Based on 2016 KPMG LLP (KPMG) study—using customer fleet data provided by Ryder Fleet Management Solutions division of Ryder Systems, Inc., from a sample of over 3,000 fleet owners—confirms that costs are increasing. For the purposes of the study, the definition of TCO includes fleet costs related
to maintenance, financing, administration, legal/taxes, and other costs (substitutions, roadside assistance, and washes). It excludes all driver and fuel costs." - KPMG: Re-evaluating of total cost of truck fleet ownership
How can a Fleet Management Solution help your business?
An FMS (Fleet Management Solution) has extensive records of historical data, which gives you the full picture of what your vehicles will cost you over time.
FMS (Fleet Management Solution) tend to look at the over-all variables of your vehicle, including:
What can you gain from having an FMS (Fleet Management Solution)?
Relevant and Available Data