The choice regarding whether or not to outsource fleet maintenance is a decision that’s made on a case-by-case basis depending on the organization and the goals of the fleet. A positive benefit about having fleet maintenance outsourced is the savings that are involved. When your company makes the decision to outsource fleet maintenance, providers will compete against other providers on cost and quality to try and gain your business. The good news is that some of the top priorities that will be optimized include cost and quality.
Savings on maintenance can vary but in general, most Vector Fleet Management customers save between 5% and 15% while increasing fleet availability. Factors that can cause the number to fluctuate include benefit costs, payroll elimination, cost reductions to parts procurement, the cost of carrying inventory, and accounting expenditures.
To make your invoices simpler, we combine your vendor invoices including your maintenance shop fees into one monthly bill. On the backend, this saves a lot of headaches and time and can translate to saving money on your overall operational costs. Depending on the size of the company, customers who use Vector Fleet save between 3% and 6% on average.
Reducing downtime for vehicles is a major benefit. A loss in profits is almost certain to occur when a vehicle is down and not working. It can cost up to thousands of dollars a day for losing the revenue for the unit that’s providing services for clients, lost workload capacity and production, and for carrying payroll for staff who may have been assigned to the unit.
You need a working vehicle that can get to the shop quickly and head back on the road again. If your fleet is operational across a much longer distance geographically, drivers might be able to get into a regional or national provider’s shop before it comes back to your in-house maintenance hub.
The economies of scale are usually in your favor with outsourced fleet maintenance. You will be able to access better resources such as best practices for your industry and the benefits of soft costs in order to access cutting-edge technology. Most maintenance fleets that are in-house don’t always allow this.
The productivity of better fleet operations is another soft cost saving method. When maintenance is outsourced, you don’t have to employ mechanics who are certified. You will not have to conduct endless training to keep the skills of your mechanics sharp or quickly try to fill an opening for a new mechanic if one resigns.
Vector Fleet Management sees increases in productivity as tangible fleet availability. Our processes and maintenance solutions normally increase fleet availability from 5% to 10%.
You will be able to address built up task backlogs with greater efficiency than you were able to do when the maintenance was still done in-house.
Your fleet will also be able to prevent small issues from becoming expensive major repairs by becoming more proactive.
Not every fleet is the same. When determining whether you should outsource fleet maintenance, consider what your goals and your budget are first. Never overlook how much you might save with outsourced fleet maintenance.
Contact us today for a free fleet maintenance cost analysis and see how our fleet management service can improve performance and lower costs.