Reliability, Predictability and $198,000 in Savings

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Transportation And Logistics

When undertaking a review of the client’s Fleet, ERA defined all of the requirements. We examined different options and then present them in such a way as to make your decision making simple.

Our review seeks to balance the three elements of fleet management:

• Acquisition and length of operating term
• Fleet Operational Management, and
• Financing of the fleet

The fleet had 100 vehicles; a mix of utilities, SUV’s, wagons and sedans, some of which required trailers to be towed reasonably regularly. The fleet operating policy had consisted of buying vehicles based on price and then running them until they could no longer perform the task for which they were required. This had resulted in an aging fleet with compromises being made in the way they were operated. They also had a policy of short-term leasing for sales and managerial vehicles for which quotes were sought as and when vehicles were required.

From ERA’s review of the fleet requirements, it was established that most of the tasks had similar vehicle specifications, which was different from previous perceptions. It was identified that the utility vehicles needed to have a higher load carrying capacity than was current and also to have a better passenger carrying capacity. Selected potential suppliers were approached and requested to provide solutions. These were compared and contrasted with the current scenario.

ERA’s analysis identified that changing the profile of the fleet by acquiring double-cab utilities except where an alternative was demonstrably necessary, allowed usage to be evenly spread over the fleet and for all tasks to be catered for effectively. The most cost-effective term of operation was identified, and the differences between leasing and ownership fully cost.

"The end result was a fleet focused on the business requirements under fully maintained operating leases, a coherent fleet management plan and the cost of acquiring and operating their fleet reduced by $198,000 per year on full implementation. This represented a 40% reduction."

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