The Financial Impact of Outsourced Fleet Maintenance

//The Financial Impact of Outsourced Fleet Maintenance

The Financial Impact of Outsourced Fleet Maintenance

Outsourcing fleet maintenance has many advantages. We have outlined the advantages below that will have the most financial impact.

Financial Impact of Fleet ManagementVector Fleet Management all parts and tire inventory with minimal mark-up

A large element of a successful commercial fleet maintenance program is the comprehensive management and efficient supply of parts.

Benefits

  • No upfront cash outlay for parts inventory
  • Improved on-hand stock levels; decreasing unit downtime
  • No obsolescence or shrinkage
  • Decrease internal A/P load by utilizing Vector for parts and service
  • Tracking of parts warranty in VFM system
  • Leverage VFM National parts and tire pricing
  • Reduced acquisition costs
  • Lower Overall R&M Spend
  • Improved coverage for OEM applications

Contact us today for a free fleet maintenance cost analysis and see how our fleet management service can improve performance and lower costs.

Leverage Vector Fleet’s National Parts and Tire Pricing

We have built extensive parts and tire sourcing networks across the country to support our contracts and this can be leveraged to your benefit. This component alone can mean significant savings.

Benefits

  • Reduce acquisition costs
  • Lower Overall R&M Spend = average cost savings of 15%

One Fleet Maintenance Invoice

Vector Fleet Management is responsible for all paperwork, invoicing, quality control and pickup of vehicles repaired by 3rd party vendors. Any repairs to the customer as non-contract work will be invoiced at Vectors cost with no mark-up.

Benefits

  • Step change in cost of process for payables = savings on cost of internal processing
  • Detailed and consolidated departmental billing and reporting will improve internal allocations and budgeting capabilities

On-Site Fleet Maintenance Employees

It is Vector Fleet Management’s policy to offer qualified applicants employment at their level of proficiency. Hiring technicians at the right level is important for job satisfaction and key to staffing a shop at peak efficiency with the right mix of technicians. We invest heavily in our technician’s careers from day one, and work to ensure that there are opportunities for advancement within Vector Fleet Management regardless of where they begin. With this type of investment in technicians in-turn lowers the technician turn-over rate.

Benefits

  • Eliminate Workman’s compensation exposure in this area = risk mitigation and cost savings
  • Reduction of legacy benefits = cost savings
  • Reduce Human Resource management costs

Comprehensive Life Cycle Reporting

Fleet Maintenance Life Cycle

This is a life-to-date analysis of cost per mile or per meter hour, and can be helpful in analyzing which units are the most costly to maintain and may need to be replaced. Vector Fleet Management has the capability to provide a comprehensive FMIS platform within our fleet maintenance program or examine options to utilize an incumbent platform.

Benefits

  • Improve budget forecasting
  • Improve life cycle management of equipment
  • Extend equipment life cycles, thereby improving capital cost exposure
  • Increase asset value for trade /auction
  • Eliminate fleet maintenance system maintenance and upgrade costs = $75k average depending on internal I.T. support levels

Life Cycle Optimization Approach

Vector Fleet Management leverages a dedicated fleet maintenance optimization approach to produce more efficient and effectively managed fleets while assisting customers eliminate fleet redundancy, extend life cycles and improve operator safety.

Benefits

  • Extend equipment life cycles
  • Increase asset value for trade = 10% average improvement

Warranty Recovery Program

Vector Fleet Management manages all OEM and extended warranties at no additional charge to the customer. We do have a small percentage fee for processing and handling of all vendor and 3rd party payments.

Benefits

  • Monthly tracking of warranty dollars recovered from all OEM
  • Will help offset repair and maintenance cost
By |2018-09-25T09:11:50+00:00September 12th, 2018|Blog|0 Comments