Hoarding assets is a common occurrence and problem in fleets across many different industries, this is because businesses often have difficulties gauging what kind of equipment they need and knowing when they can receive and distribute the equipment they request. As a result of hoarding, a business’ utilization rate drops because vehicles and assets are not being used very much or at all. This leads to major problems in asset allocation to department and need and questions like “Why does our 2 year-old Ford F-150 have only 200kms on it? Why do we have a Fiat 500 in our Gas Production Division? Why do we own a crane instead of renting it when we need it?”
Building a productive and cost-effective fleet is like finding the Goldilocks Solution, if the fleet has too many vehicles your business will be paying for excess capacity, gas, insurance and other costs that eat into your bottom line but if you have too few then you risk overworking your vehicles/employees, miss out on maximizing, revenues, and dramatically reduce the life-cycle of vehicles leading to higher repair and maintenance costs as well as lower resale value in the end. Telematics and integrated fleet/asset optimization solutions can be powerful tools to optimize your fleet by calculating engine hours, kilometers driven, and days driven over the course of weeks, months, and years into usage rates. Getting your utilization rate “just right” and consistent ensures that costs are controlled and keeps your team honest – on their time cards and equipment requests.
An unbalanced utilization rate is the sign of organizational dysfunction that can put major downward pressure on resources, employee focus, or both. Finding perfect balance with your utilization maximizes the impact of your money and allows fleets to be properly equipped with what they need. By probing specific usage metrics such as kilometers driven at specific work sites can give you an idea of what vehicles are working and if the right vehicles are being used. For instance, if a specific job requires heavy-duty trucks but only has light-duty trucks then it could a case where the light-duty asset is hauling more than it should resulting in greater maintenance costs or it is not doing any work at all.
If your vehicle fleet is disbursed geographically, it is a powerful feeling to know how often each vehicle is being used and where to dispatch them; that’s just one part of what utilization improvements. Monitoring the utilization of vehicles and committing to practices that balance usage properly helps businesses generate greater efficiencies and gain ROI in finance management, vehicle safety and compliance, and HR via proper staffing, morale, and discipline. A fleet optimization provider can implement the technology and provide recommendations on improving utilization but generating real growth will be based on a business’ willingness to make changes.
Begin optimizing, analyzing and emphasizing your assets today by contacting Storm Telematics!
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