The Impact of Hidden Costs on Fleet Management

The impact of hidden costs on fleet management

There are not only the purchase cost of the equipment, the financing, the depreciation, the maintenance and repair costs to consider when one looks at the operational costs of a fleet of heavy vehicles. There are the «hidden costs» that are very important to look at.

What are the hidden costs? Here are a few examples:

1.The opportunity cost when a vehicle is stopped for repairs. It is the cost per day, for example, of not doing business because a vehicle is down.

It is not rare that a truck brings in more than $1000 per day in revenue. Down one day, down a $ 1000. It goes fast.

2. The cost of managing multiple suppliers.

A dealer, a tire vendor, a road service, towing provider, suspension repair service, a jockey service to shuttle trucks to and from the shops, etc. for each, you have to contact for each, you have to contact them, organise each intervention, emit a purchase order, follow-up, receive an invoice, sometimes call back to question the invoice, approve it, send it to another department for treatment, enter the data in the accounting software, get the invoice approved, answer questions that will pop up and prepare payment. You see the scenario, these are all actions and time spent on non-core business operations and
are very costly to the company as they add up.

3. There is the cost of delivering and picking up vehicles going to the shop.

Here we are not just talking about the driver’s salary. You also have to consider that when the driver is taking time to go to the shop, he or she is not serving your customers, again creating a lost opportunity to generate revenue and customer service.

4. Another hidden cost is the cost of having vehicles that are not well adapted to your operation.

Sometimes, managers neglect this very important aspect and the consequences can be important and will be so for the lifetime of the equipment.

For example, a manager buys a truck off a dealer lot at a very good price and also gets a really good interest rate to finance it. He is really proud of the low monthly payment.

However, the truck is not suited to the company’s operations (wrong engine, transmission, differential ratio and aerodynamics for the application) and consumes $ 1500 more of fuel per month than if he had opted for a purpose built truck.

At Brossard Leasing,

WE HAVE A SOLUTION TO HELP YOU eliminate the hidden costs and manage your fleet at the best overall operational cost.

WE ARE THE LARGEST QUEBECOIS TRUCK AND TRAILER RENTAL AND LEASING PROVIDER with a fleet of almost 3600 units and a rental fleet more than 2000 units.

WE OFFER:

• Dry and refrigerated straight trucks, tractors and trailers as well as flatbeds.
• Daily, weekly or monthly rentals.
• Full-service leases on terms from 12 up to 120 months on certain types of equipment.
• Our service is 24 hours, 365 days.
• We never close.
• We include consulting that will save you big.

Our rentals and leases include everything.

Consulting services to develop made-to measure solutions, maintenance, repairs, inspections, parts, lubricants, tires, brakes, labor, on-site service, pick up and delivery, replacement vehicles when a truck is down and more.

ONE MONTHLY INVOICE, EVERYTHING IS INCLUDED. It’s simple, efficient and profitable for you.

Contact one of our Consultants that will know how to guide you to the adapted solution for your operation.