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| Truck Down again? What does it really cost? |
| Typical Fleet Management Headache: Check this out.... |
1) Scenario: lead technician on a busy day notices brakes are noisy and the truck must go in for repairs
immediately. Do you:
a) Transfer the techs tools/ equipment to another stocked vehicle? Tech is somewhat late but does finish call list
on overtime. This scenario requires that the company purchase, maintain, license, insure and stock (with
inventory) a stand-by service ready fleet vehicle.
b) If no stocked vehicle available - transfer tools/ equip. / and inventory to another vehicle? Result: even more
hours wasted, tech is late to pre-scheduled jobs. This also means that the company purchase, maintain, license,
and insure a stand-by service ready fleet vehicle.
c) Tell the tech to take an unpaid day off? Techs usually don't appreciate forced unpaid time off and your quality
of service is compromised unless other field techs work overtime.
d) Have the tech ride "double-up" with another tech for the day. Company's productivity is largely affected.
Many times 2nd technicians time cannot be billed for and the 2-man crew cannot work at double-speed therefore
the 2-man crew will work overtime to provide customers service.
With insert bodies the PROBLEM IS SOLVED. Transfer body to a basic, rented or leased pickup truck and
continue with work day to minimized delay.
immediately. Do you:
a) Transfer the techs tools/ equipment to another stocked vehicle? Tech is somewhat late but does finish call list
on overtime. This scenario requires that the company purchase, maintain, license, insure and stock (with
inventory) a stand-by service ready fleet vehicle.
b) If no stocked vehicle available - transfer tools/ equip. / and inventory to another vehicle? Result: even more
hours wasted, tech is late to pre-scheduled jobs. This also means that the company purchase, maintain, license,
and insure a stand-by service ready fleet vehicle.
c) Tell the tech to take an unpaid day off? Techs usually don't appreciate forced unpaid time off and your quality
of service is compromised unless other field techs work overtime.
d) Have the tech ride "double-up" with another tech for the day. Company's productivity is largely affected.
Many times 2nd technicians time cannot be billed for and the 2-man crew cannot work at double-speed therefore
the 2-man crew will work overtime to provide customers service.
With insert bodies the PROBLEM IS SOLVED. Transfer body to a basic, rented or leased pickup truck and
continue with work day to minimized delay.
| Dollars and cents: the bottom line.... |
Capital Investment for a vehicle: What is the typical cost of a spare fleet vehicle that is configured enough
to operate in the field?
Examples: Vehicle $23000
Upfitting $2500 - $8000 or more depending on industry
Repair scenario: 3-4 times a year vehicle in for repairs: any combination of scheduled oil changes, brakes &
alignment, tires, warranty work, tune ups, emissions etc.
Expenses for spare vehicle:
Annual Insurance $1200
Annual Repair average $1000
Licensing varies greatly. Example $350
Plug your actual expenses in. Our example comes to $2550 per year
Not only are there costs to keeping one spare vehicle ready to go, but.....
Labor Overhead: What is your average techs wages including overhead/ bonuses? Example $38.00/hr
How much time to move out of truck and back in? Example 3 hours
How many times per year? Example 4 times
Simple calculation of overhead due to tech wages: $456.00
Insert your own actual numbers and realize the costs can be substantial. The older the fleet vehicles the higher
the actual will be. Our example is conservative considering a truck could realistically be down for a few days
at a time and more often.
Lost company revenue: What's your hourly field service labor rate?
Example: $75.00/hr x 3hours x 4times per year .....$900.00
Inventory hours: 8 hours per year (times $38/hr) = Overhead $304.00
8 hours lost company revenue = 8*$75 = $600.00
Simplistic example for inventory overhead: $904.00. Solution: have spare removable utility body already
inventoried; tech will be in-and-out of shop quickly. Office personnel can perform inventory at their
convenience without techs racking up non-billable shop time. Of course, not performing necessary inventory at
all means company is open to serious management problems, costly material not being accounted for and
possible theft.
The purpose of this scenario is not to give you actual savings costs but illuminate the wasted time &
company resources that can be minimized by implementing a more flexible fleet solution. The above
scenarios include one truck. If multiplied time the number of vehicles, the significant savings are obvious. Each
organizations example will depend on how technicians are compensated. Know what your perspective is:
streamlining and reducing overhead makes for a better fleet solution.
to operate in the field?
Examples: Vehicle $23000
Upfitting $2500 - $8000 or more depending on industry
Repair scenario: 3-4 times a year vehicle in for repairs: any combination of scheduled oil changes, brakes &
alignment, tires, warranty work, tune ups, emissions etc.
Expenses for spare vehicle:
Annual Insurance $1200
Annual Repair average $1000
Licensing varies greatly. Example $350
Plug your actual expenses in. Our example comes to $2550 per year
Not only are there costs to keeping one spare vehicle ready to go, but.....
Labor Overhead: What is your average techs wages including overhead/ bonuses? Example $38.00/hr
How much time to move out of truck and back in? Example 3 hours
How many times per year? Example 4 times
Simple calculation of overhead due to tech wages: $456.00
Insert your own actual numbers and realize the costs can be substantial. The older the fleet vehicles the higher
the actual will be. Our example is conservative considering a truck could realistically be down for a few days
at a time and more often.
Lost company revenue: What's your hourly field service labor rate?
Example: $75.00/hr x 3hours x 4times per year .....$900.00
Inventory hours: 8 hours per year (times $38/hr) = Overhead $304.00
8 hours lost company revenue = 8*$75 = $600.00
Simplistic example for inventory overhead: $904.00. Solution: have spare removable utility body already
inventoried; tech will be in-and-out of shop quickly. Office personnel can perform inventory at their
convenience without techs racking up non-billable shop time. Of course, not performing necessary inventory at
all means company is open to serious management problems, costly material not being accounted for and
possible theft.
The purpose of this scenario is not to give you actual savings costs but illuminate the wasted time &
company resources that can be minimized by implementing a more flexible fleet solution. The above
scenarios include one truck. If multiplied time the number of vehicles, the significant savings are obvious. Each
organizations example will depend on how technicians are compensated. Know what your perspective is:
streamlining and reducing overhead makes for a better fleet solution.
