Extending Fleet Asset Life Cycles With Technology

The current state of infrastructure often dictates fleet asset planning and procurement, but what about the future? We all know that planning for infrastructure is important, but it’s just as important to guard against major disruptions like the October 2017 hurricanes. Protection against the unforeseen is one of the key roles of a procurement department.

Nowadays, businesses opt for white label fleet management partnerships or collaborate with similar companies to efficiently manage their vehicles in real-time and adhere to time-bound restrictions. This translates to the integration of software technologies to manage their fleet, allowing businesses to effectively keep track of vehicle status, location, and performance. As a result, routes tend to be better optimized for deliveries to be made on schedule, saving money and time in the process.

With the fleet industry focused on reducing costs, managing growth, and improving reliability, there is a continuous emphasis on reducing the fleet’s operating costs. As a result, there is an increased emphasis on finding ways to minimize the potential for asset failures.

One of the simplest ways to do this is to ensure that the fleet operates as frequently and as safely as possible. Businesses may need to take advantage of advanced software, such as CMMS (Computerised Maintenance Management Software), which can help them track spare parts and schedule regular maintenance of their fleets.

What are Fleet Asset Life Cycles?

The Fleet Asset Life Cycle (FLAC) is a method for maintaining, replacing, and upgrading an organization’s fleet assets over time. Many organizations use it to guide the replacement of their fleet assets and justify purchasing new assets. For example, an organization might decide to replace the vehicles in their fleet every five years or purchase a new asset every three years to ensure business continuity. To undertake such replacements, businesses may seek equipment loans florida, or wherever they are if they do not have the finances necessary.

Given that a fleet’s life cycle is not static but instead can change over time, it is important to think about the maintenance and repair needs of a fleet and how new technologies can influence that process. In order to do this, we need to understand a fleet’s Asset Life Cycle (ALC). The ALC is an understanding of a fleet’s strategic, operational, and physical needs and its drivers (such as growth, maintenance, and reuse). This understanding is used to design and justify the upgrade and replacement of a fleet’s assets (parts and vehicles) through a life cycle.

Here are important factors to consider in extending fleet asset life cycles with technology:

Whole Of Life Costs

The global transport industry recognizes the immense value of investing billions of dollars in cutting-edge fleet maintenance, vehicle rehabilitation, and fleet management software. Fleet management, while sometimes seen as a significant cost in trucking companies, is an area where companies are actively embracing modern advancements. It stands as a crucial cornerstone in the efficient operation of transportation businesses. By comprehensively assessing the entire fleet, fleet managers are empowered to skillfully strategize their vehicle fleet and technical teams, with the help of such software. The integration of fleet management software enables meticulous evaluation and budget allocation for maintenance and repairs per vehicle, ensuring that these expenses remain favorable compared to replacement costs.

Maintenance Costs

Maintenance costs are an important component of an organization’s total cost of ownership (TCO), but many businesses are unaware of these hidden costs. The average truck owner spends $1,200 a year on maintenance, with vehicle service and repair costs accounting for only one-third of this. In fact, according to the Federal Motor Carrier Safety Administration (FMCSA), the average driver is responsible for more than $2,800 a year in maintenance alone.

Delaying Replacement Of Vehicles

The automotive industry is currently experiencing a growing focus on the importance of extending the life cycles of vehicles. With vehicle sales on the rise and prices dropping as a result of oversupply, it is becoming increasingly important to try and generate a greater return on investment for the fleet owner.

Calculating Your Business Vehicle’s Useful Life

Fleet asset management is key to reducing waste and fuel stress on vehicles and increasing productivity and profitability. It also plays a key role in marketing and sales, as it helps identify and analyze the life cycle of a vehicle. This is the end of the vehicle’s life cycle, where the vehicle is no longer useful and is eventually disposed of. Fleet managers need to know the age of these vehicles, as well as their useful life. Useful life is determined by the expected useful life of the vehicle, which includes a range of useful life based on vehicle usage. It is also determined by additional factors, such as maintenance and wear and tear.

On an operational level, the availability of new technologies to improve asset performance is an integral part of a transportation and logistics department’s ability to meet customer satisfaction and return on investment. However, a transportation and logistics department also has to manage a fleet of assets that are aging.

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