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Market Trends

Our long-time editor and fleet expert, Mike Antich, offers opinions and ideas on the overall commercial fleet industry and draws interesting comments from fleet managers and other industry professionals from across the country. Mike was inducted in the Fleet Hall of Fame in 2010.

Institutionalizing Cost-Control Strategies

Senior management exerts intense pressure on fleet managers to control and/or reduce vehicle acquisition and operating expenses. To accomplish this, a fleet managers can pursue three different cost-control strategies — cost savings, cost deferral, or cost avoidance. In order to implement a successful cost-control strategy you need to institutionalize the mechanisms to curb money-wasting behaviors.

Avoid Repeating Past Inefficiencies: Build the Truck to Match Today’s Application

I asked one fleet manager how he spec’ed replacement trucks for his fleet application. He related that many years earlier an OEM rep spec’ed out his trucks and he has been using the same formula ever since. While this may work in some cases, specifications should be defined by today’s fleet application to ensure the replacement truck is designed to accommodate current operational requirements rather than trying to make your operation conform to trucks spec’ed for yesteryear’s requirements.

Conduct an Efficiency Audit to Eliminate Waste in Your Fleet Budget

Reducing fleet costs is a constant, never-ending struggle for all fleet managers, especially since every aspect of fleet management revolves around money. In lieu of requesting additional budget dollars, one course of action is to stop the waste of existing dollars.It is estimated that, on average, 5-10% of a fleet’s annual budgeted dollars are wasted.

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