“Fleet Operational Costs are escalating at 8% to 12% per annum with no reduction options insight.”
Carry on doing what you are doing today, and your Fleet Costs will keep on rising!
This is due to Vehicle price increases, slow GDP, fluctuating exchange rates, too many model variations, “Specials” on new vehicles have a negative effect on future Resale Values, increasing Maintenance, Tyre and Fuel Costs, linked to Driver behaviour and general inadequate Fleet Management.
Having access to information, regarding most or all the above in one place, will enable you to make good Operational decisions and take Correct Actions to reduce your Fleet Costs.
A reputable Fleet Management Information System (FMIS) allows you to achieve the following:
Make correct Vehicle Selection and Purchasing decisions based on a Total Cost of Ownership (TCO) and Cents per Kilometre (CPK) objective informative decision.
- Receive focused Exception reports on “Out of Line” vehicle expenses covering Depreciation, Maintenance, Tyres, Fuel, Driver fines, Driver behaviour and Accidents.
- Vehicle service intervals and due for, License renewals: Vehicles and Drivers, Replacement dates and requirements with Driver fine demerit points are flagged and sent to responsible managers.
- Analytical vehicle expenses for Month, Year to Date and Lifetime Costs allows for accurate Expense forecasting and Cost control.
- Centralised cost information allows for the preparation of accurate Budgets, Capex requirements and planning of fleet replacements.
1. A Fleet of 100 Passenger and Light Commercial vehicles allowing for:
Depreciation, Maintenance, Tyres, Fuel, and Insurance at R 13 500 pm per vehicle over 60 Months and 150 000 kms, could cost R 16.2 mill per annum. Escalating at 9% the future cost will be about R 25.4 mill.
This is a 57% increase.
A FMIS can assist you in finding at least an 8% cost saving.
| Current costs: | R 16 200 000 |
| Expected Increase: | R 13 660 000 |
Expected minimum saving 8% R 1 092 800 (Savings of 15% can be achieved)
Cost to achieve this: R 177 690 (Allowing for inflation at 10%)
Cost improvement: R 915 110
2. A Fleet of 50 MC Vehicles allowing for:
Depreciation, Maintenance, Tyres, Fuel, and Insurance at R 48 630 pm per vehicle over 60 Months and 480 000 kms, could cost R 29.2 mill per annum. Escalating at 9% the future cost will be about R 45.7 mill.
This is a 57% increase.
A FMIS can assist you in finding at least an 8% cost saving.
| Current costs: | R 29 178 000 |
| Expected Increase: | R 16 522 000 |
Expected minimum saving 8% R 1 321 760 (Savings of 15% can be achieved)
Cost to achieve this: R 71 420 (Allowing for inflation at 10%)
Cost improvement: R 1 250 340
3. A Fleet of 30 HC Vehicles allowing for:
Depreciation, Maintenance, Tyres, Fuel, and Insurance at R 201 150 pm per vehicle over 60 Months and 960 000 kms, could cost R 72.4 mill per annum. Escalating at 9% the future cost will be about R 107.8 mill.
This is a 48% increase.
A FMIS can assist you in finding at least an 8% cost saving.
| Current costs: | R 72 415 000 |
| Expected Increase: | R 35 472 160 |
Expected minimum saving 8% R 2 837 770 (Savings of 15% can be achieved)
Cost to achieve this: R 42 850 (Allowing for inflation at 10%)
Cost improvement: R 2 794 910
It is a “NO BRAINER”
If your goal is to reduce Fleet Costs, have access to Valuable Accurate information improving company Safety and mitigating Risk for the future by changing what you are doing today, contact me.
We are Totally Committed in assisting you, the Fleet Owner or Fleet Manager, to achieve this.
You have nothing to lose, all to gain, contact me TODAY.
Johan van Niekerk
CEO – Mobility Solutions