The 20:1 Solution. Calculating the ROI of a Modern Asset Maintenance I.T. Solution

Transcription

1 Calculating the ROI of a Modern Asset Maintenance I.T. Solution

2 1 INTRODUCTION It might come as no surprise that many fleet executives report they invest more time and energy analyzing the revenue side of their business than they do the cost side. And when it comes to cost centers, few can have a greater negative impact on a fleet s bottom line than asset maintenance. Whether it s a case of too many unexpected breakdowns, too little tracking and recovery of warranty dollars, too much invested in spare parts inventory, too much overtime, or simply too much paperwork, an inefficient maintenance shop can burn through money as quickly as any fleet can generate it. It is for this reason that a growing number of fleets now apply the same I.T.-enabled discipline to maintenance operations that has helped improve the performance of most other operational areas. Regardless of fleet size, the use of a modern asset maintenance solution can drive step-change improvements in shop efficiency, cost control and vehicle productivity. It can help maintenance operations optimize PM cycles, reduce labor hours, track product wear rates, and collect intelligence that can be used to improve purchasing strategies. In short, a modern asset maintenance solution whether implemented as on-premise software or delivered through the cloud can provide a level of value that is difficult to match in other areas of the business. In fact, fleet operations of virtually all types and sizes including those that rely on outside service providers have reported impressive reductions in cost per mile by leveraging technology improve visibility and cost control in this complex, fast-paced area. Finding the Savings The business case for a modern asset maintenance solution can be built around proven financial benefits in several key areas: Warranty Administration. The ability to reclaim lost dollars related to OEM, extended component and aftermarket parts warranties. Inventory Management. Reduced investment in replacement parts inventories and improved purchasing practices. Repair Order Generation. Streamlining the process to reduce steps, time and headcount while improving visibility and accuracy. Facility Scheduling. Matching shop capacity and demand while labor requirements. Reporting. Enhanced ability to analyze operational

3 It s Your Money: Warranty Administration 2 Fleet A: Recovered $60,000 in warranty costs in first month and over $500,000 in first year. Identifying, filing and tracking warranty claims can be an administrative hassle, which is why many fleets make only half-hearted attempts to recover the dollars due to them through OEM, extended component and aftermarket parts warranties. A modern asset maintenance solution can eliminate the time and hassle associated with this process by initiating warranty identification and claims as part of the repair order process and applying warranty credits to repair costs. A variety of reporting capabilities and alerts can also dramatically improve visibility to warranty recovery opportunities. In essence, a modern asset maintenance solution can help change the culture as it relates to identifying and reclaiming dollars that rightfully belong to the fleet rather than the supplier. In fact, this revenue stream alone might cover the investment in the new software. What s In Stock, and Why Fleet B: Cut inventory investment by $100,000 in first year What if someone told you they could help reduce your investment in tire inventory by 30%? This is just one of countless actual outcomes reported by fleets that have automated their parts inventory operations through a modern asset maintenance solution. Many fleets report a 20% reduction in existing inventory at implementation of their new solution, followed by ongoing improvements through process automation, tight monitoring of onhand quantities, visibility to component wear rates and improved tracking of warranty claims. The insight into product wear rates can also enable the fleet to isolate and address problematic suppliers/brands/ parts and negotiate better prices. Automating the RO Process Fleet C: Cut the repair order process from 23 steps to 12 Repair orders (RO) are the main transaction records for all service activity. And because they re so important, they need to right the first time, every time, which traditionally has required significant time and effort. A modern asset maintenance solution can automate much of this process, dramatically reducing the steps and time required to generate accurate ROs that help boost shop efficiency and control costs. Key capabilities of leading solutions include integrated labor, time, cost and note tracking, real-time status reports of each job, connectivity to parts, and the allocation of Standard Repair Times to plan and track technician and shop productivity. Many maintenance operations are also extending the benefits of these solutions to go paperless through the use of integrated mobile workstations for their technicians, eliminating the need to search for paperwork and other information needed to begin and complete a job.

4 3 Coming In Going Out Fleet D: Reduced the equivalent of.5 full-time supervisory employee Scheduling the flow of equipment through a busy shop or to an outside service provider can be like directing traffic at a busy intersection. Even skilled supervisors/shop foremen are under pressure to design and execute a daily plan that maximizes resource efficiency. An asset maintenance solution can take much of the pain and pressure and a great deal of cost out of this process by tying RO generation, inventory information, vehicle repair history and other critical intelligence into the planning process. Leading solutions provide visual, calendar-style planning tools with drag-and-drop scheduling by bay, technician and time slot. Real-time visibility into job status and the use of Standard Repair Times help users direct the flow of work into and out of the shop with minimal surprises. Fleets using these solutions report saving tens of thousands of dollars per year in personnel costs while improving shop productivity. Many also find that their employees are more satisfied, as well, due to a more predictable and manageable work environment. Knowing More. Saving More. Sometimes, what you don t know can be having the most damaging affect on your bottom line. This is certainly true in such a cost-intensive area of asset maintenance. Fleets have invested huge amounts in their assets, not to mention the tools, equipment and skilled personnel needed to keep them running. But if the ever-critical maintenance area is still being run with paper-based processes, the ability to measure and address KPIs can be difficult if not impossible. An asset maintenance solution can drive performance improvements through real-time access to repair, parts procurement, staff and warranty data. Imagine the value of being able to easily track: Unit life-cycle cost Warranty analysis unit, unit type, make, model, year, etc. MPG and fuel inventory tracking Tire life tracking By increasing visibility into these and potentially scores of other areas, fleet executives can achieve significant savings 10 percent of annual maintenance spend is common. What Are Your Numbers? Are you happy with the performance of your maintenance area? Are you comfortable that you have eliminated inefficiencies, unnecessary labor hours and excessive inventory costs? The 20:14 Solution

5 Are you confident that your team is hitting your PM targets and minimizing downtime and maintenance-related out-of-route miles? Is it a well-oiled machine that makes the most effective use of your capital or an increasingly worrisome cost center? 4 The business case for an investment in an asset maintenance solution begins by answering these questions. The next step is to calculate the potential ROI based on the challenges you are facing versus the capabilities of available solutions. Based on input from existing users of a leading fleet maintenance solution, your business could achieve an impressive 20:1 return on investment. The leading areas of payback include: Warranty Administration 10% reduction of annual maintenance spend Inventory Management 20% reduction in existing inventory 10% annual reduction in inventory Repair Order Process Elimination/saving of multiple FTE employees Facility Scheduling Elimination of supervisory personnel requirements Reporting 10% reduction in annual maintenance spend Are you happy with the performance of your maintenance area? With TMW s fleet maintenance solutions, your business could achieve an impressive 20:1 return on investment. Request a demo now and let s discuss how we can help you: Drive step-change improvements in shop efficiency, cost control and vehicle productivity. Optimize PM cycles, reduce labor hours, track product wear rates, and collect intelligence that can be used to improve purchasing strategies. Eliminate the time and hassle associated with warranties Tie RO generation, inventory information, vehicle repair history and other critical intelligence into your planning process. WIN THE BIG PICTURE WITH TMW SYSTEMS. TMW is a leading transportation software provider to commercial and private fleets, brokerage and 3PL organizations. Founded in 1983, TMW has focused on providing enterprise software to the transportation industry, including assetbased and non-asset-based operations as well as heavy-duty vehicle service centers. With offices in Cleveland, Dallas, Indianapolis, Nashville, Oklahoma City, Raleigh, and Vancouver, the company serves over 2,000 customers, including many of the largest, most sophisticated and complex transportation service companies in North America. The 20:15 Solution TMW is a Trimble Company (NASDAQ: TRMB) and part of the international Transportation and Logistics Division. (216) solutions@tmwsystems.com