Vehicle Downtime

Pro-actively managing vehicle downtime is critical if fleet decision-makers are to keep operating costs in check.

Vehicles that are off-the-road continue to cost businesses money which is why, according to Peter Eldridge, head of operations at Inchcape Fleet Solutions and a leading figure within the Institute of Car Fleet Management, it is vital that ‘key-to-key’ time is managed.

However, low cost is taking priority over best value when it comes to the purchasing of services and goods for some fleets because of ongoing concerns about the economic climate.

But according to Eldridge, decisions based purely on initial outlay often do not prove to be the best value overall and could end up costing more in the long-term.

“The fleet industry is now heavily influenced by procurement teams which in itself is fine providing they consider the cost of the whole experience and not just the cost of a specific element,” says Eldridge. He highlighted the procurement of cheap tyre brands that cannot meet the stock availability and distribution requirements of a fleet and vehicle repairs as ‘classic cases’.

Referring to the repair of vehicles, Eldridge says: “Time management of the repair is critical. People get too hung up on trying to saving a couple of pounds, but what is the point of a cheaper repair if the vehicle takes longer to repair?

“Procurement teams are naturally interested in delivering lowest cost, but this does not guarantee that best value for money is achieved and often results in unexpected peripheral costs, due to key elements of the proposition being overlooked.”

The moral of the story is to always explore the best overall value for money propositions, taking all aspects into consideration.

Eldridge says: “The main issue here is who is running the fleet: there is no doubt that the best run fleets demonstrate a healthy balance of key stakeholder involvement. Making financial decisions about key elements of the fleet operation in isolation is not recommended and procurement teams should be mindful that accredited fleet experience is essential to maximise savings.”

Introduction

SMR Costs

Total Cost of Ownership

Accident Costs