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 carries all parts and tire inventory with only a 2.5% parts mark-up

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


  • Liberate cash for other uses
  • No obsolescence or shrinkage
  • Positive Cash Flow

Leverage VFM 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.


  • 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.


  • Step change in cost of process for payables = savings on average per month 15% – 20% based on our own research and several case studies
  • One monthly consolidated invoice for entire maintenance program

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.


  • Eliminate Workman’s compensation exposure in this area = risk mitigation and cost savings
  • Reduction of legacy benefits = cost savings
  • Dedicated onsite maintenance team which also may include hiring current technicians resulting in No Job Loss

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.


  • Improve budget forecasting & scheduling with production on downtime of assets
  • Improve life cycle management of equipment
  • Eliminate fleet maintenance system costs = $100k average

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.


  • 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.


  • Monthly tracking of warranty dollars recovered from all OEM
  • 100% compliance and increase on policy claims
By |2018-09-12T12:52:44+00:00September 12th, 2018|Blog|0 Comments