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Extended Cycling Increases Truck Fleet TCO

Extended Cycling Increases Truck Fleet TCO

A truck’s total cost of ownership (TCO) covers a specific range of expense variables, regardless of the make or model. The four lifecycle categories that influence TCO are fixed costs, operating expenses, incidental costs, and depreciation/resale value. A key factor that drives these lifecycle categories is a vehicle’s service life.

July 28, 2018

Maximizing Utilization Maximizes Truck Revenue

Maximizing Utilization Maximizes Truck Revenue

If you want to provide added value to your company, you need to view fleet as a business and not simply an aggregation of assets to be managed cost-effectively. The fastest way to improve your bottom line is to increase fleet utilization, which increases the productivity of each individual truck.

July 2, 2018

Fleet Operating Costs Remain Stable for Fourth Consecutive Year

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.

May 22, 2017

Yes Virginia, There is Depreciation

Depreciation is a necessary evil in our industry. Knowing your risks and knowing your OEM partners won’t make depreciation go away but it can make it more manageable.

March 1, 2017

Cost Control is Constrained Without Driver Buy-in

The fundamental requirements of your business necessitates minimum fleet equipment specifications that, as a result, pre-define the expense parameters from both a fixed and operating cost perspective. If you acquire vehicle assets that best fulfill your fleet application, then any supplemental cost reduction will only be based on incremental refinements The best way to achieve additional cost reduction is by modifying driver behavior.

January 1, 2017

Tires are a Depreciating Asset: 10 Ways to Slow the Rate of Depreciation

As a wear item, tires are a depreciating asset. Your job, as the fleet manager, is to slow the rate of depreciation. Replacement tires as a cost category are a fleet’s second-largest operating expense, exceeded only by fuel. By maximizing tire tread life, you lower per-mile costs, resulting in fewer premature removals and optimizing the condition of tire casings, allowing for multiple retreads.

November 21, 2016

Long-Term Impact of Longer Truck Replacement Cycles

The more expensive the asset, the longer it is kept in service; however, the need for short-term cost savings prompts some fleets to even further extend cycling parameters and defer replacements. But, what are the consequences?

July 26, 2016

Flat Fuel Prices Forecast to Extend Through 2016

Lower prices for gasoline and diesel have been a welcome relief for fleets, in some cases, reducing operating costs by 25-30 percent. While the past three years have been heaven-sent for the fleet industry overall, it has had a dramatic impact on fleets operated by energy companies, which are scrambling to cut costs to offset the decline in oil prices. The unfortunate fact of life is that one person’s fortune is sometimes another’s misfortune.

November 2, 2015

Operating Costs Flat for Third Consecutive Year

Calendar-year 2015 marks the third consecutive year that fleet operating costs have remained stable compared to the past three years, primarily due to the continuing softness in gasoline and diesel prices. Replacement tires, the second highest operating cost, were stable due to the ongoing softness in commodity prices, primarily rubber and oil, while increased maintenance intervals contributed to lower maintenance costs for fleets. The forecast is more of the same for CY-2016.

October 16, 2015

Autogas Questions Answered

There are a number of frequent questions fleet managers ask about propane autogas and its benefits.

June 30, 2015

A Dollar Saved is Better Than a Dollar Cut

Simply cutting corners is usually not the best solution for fleet managers to stay within their budget. Instead, by learning how to operate their fleets more efficiently, fleet managers can retain more cash long-term.

May 19, 2015

15 Factors Putting Downward Pressure on Fleet Operating Costs

For the second consecutive year, total fleet operating costs have remained flat for commercial fleets when compared to the prior year. This blog identifies the 15 factors that are putting downward pressure on fleet operating costs.

October 20, 2014

10 Strategies to Curb Medium-Duty Truck Operating Costs

There is ongoing upward pressure on operating costs for medium-duty truck fleets. Factors impacting operating costs are volatile diesel prices, replacement tire costs, and longer service lives, which are increasing maintenance expenses due to component failures, escalating parts prices, and higher labor rates. Here are 10 strategies fleets are employing to mitigate these cost increases.

March 18, 2013

Higher Operating Costs Forecast for CY-2012

Fleet operating costs are forecast to trend higher in calendar-year 2012. Replacement tire prices are expected to increase 6-10 percent due to higher raw material costs and higher commodity prices. In addition, higher commodity prices will put upward pressure on component costs. Similarly, inflation will put upward pressure on labor rates in high-cost markets. The one bright spot is that fuel prices are forecast to remain at 2011 levels due to the ongoing sluggish economy.

October 24, 2011