Fleet Management – Are you wasting $millions on poor management of fleet?
The portfolio of plant and fleet is a significant investment for all local governments, and one that is all too commonly poorly managed. Under-utilised fleet is a huge cost to Council, with at least 50% of the fleet operating costs being a fixed cost. Fleet or plant in poor condition increases the maintenance costs and results in significantly larger downtime costs. Making matters worse, replacing under-utilised plant and fleet, particularly when hiring options are available, can result in $millions in cash wasted each year. And then there is the increased risk to the safety of staff and the public due to assets in poor condition.
But without better information on the composition and performance of the fleet, how are investment decisions made?
CT Management Group has been assisting Council’s by completing a Fleet Cost Modelling review of their fleet management. Each and every project has identified at least $2million in cash savings over the 10 year projection. Using our own Fleet Cost Modelling planner, our fleet experts model plant and fleet assets, calculate the whole of life costs for each asset, report on current utilisation and conduct a buy/hire analysis to identify opportunities for fleet disposals. The recommendations are summarised in a 10-year projection for operational costs and the net-capital (includes sale on disposal) required for the fleet replacement program.
If you would like to discuss this further and find out how CT Management Group can assist your council in delivering $millions in fleet savings, please contact Graham Jarvis on 1300 500 932 or via the form below.