QUICK GUIDE. Top 6 Ways to Realize ROI. with Fleet Management Software. Top 6 Ways to Realize ROI with Fleet Management Software
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1 QUICK GUIDE Top 6 Ways to Realize ROI with Fleet Management Software 1
2 Top 6 Ways to Realize ROI with Fleet Management Software Fleet Management Software helps organizations improve their maintenance operations by lowering parts inventory, reducing labor costs and extending the useful life of equipment and vehicles. It also provides the tools to manage and control equipment, assets, parts inventory and technicians. As with any major investment, realizing a Return on Investment (ROI) as quickly as possible is crucial. Several key areas of operation will see a marked improvement with Fleet Management Software and will provide the greatest opportunity for Fleet Managers to recoup a technology investment. These areas include: 1. Improved Workflow 2. Better Preventive and Predictive Maintenance 3. Optimized Vehicle Usage and Fleet Size 4. Increased Information Access 5. Enhanced Parts and Inventory Management 6. Maximized Warranty Recovery This quick guide will examine each area of return and outline the improvements fleet managers can expect to see with Fleet Management Software. 2
3 Improved Workflow Fleet Management Software offers functionality to manage daily workflow, such as work order processing and accurate real-time productivity data, and enables automated processes that reduce the time needed for data entry and eliminate data entry errors. Whether the strategy is called Total Quality Management or Best Practices or RAMS (Reliability, Availability, Maintainability, and Sustainability), the goal is the same; maximize the overall availability of an asset while minimizing life cycle costs. Various workflows and processes are employed by Fleet Managers to overcome specific challenges unique to their fleet. Fleet Management Software gives managers the information they need to increase workflow efficiency from detailed work order processing, which can help keep the shop floor running smoothly, to high level reporting and trend analysis. 3
4 Metro Transit System St. Louis, MO Reduced Fleet Department costs by $4 million dollars in one year. Metro s maintenance team reduced total department costs by approximately $4 million dollars in one year, due to improved processes, predictive maintenance and the ability to monitor and report on data. 4
5 County of Siskiyou, CA Mechanics have increased productivity by 20%. Equipment Maintenance Manager Virgil Hardy explains, Labor is another notable cost that can be lowered through tracking. Because of this, the gap between our top and bottom mechanics is closing. 5
6 Better Preventive and Predictive Maintenance Optimal vehicle availability is a fleet department s core responsibility. This can only be achieved through proactive maintenance and quick response to unforeseen issues. Fleet Management Software provides access to accurate meter readings and intelligent scheduling tools which are the backbone of preventive maintenance programs. When service is needed, Fleet Management Software improves repair times by having the right parts and right staff available to service equipment ensuring maximum uptime and availability, and reduces the costs for both scheduled and unscheduled repairs. In addition, providing the correct level of service avoids the pitfalls of over- or-under maintaining vehicles to lower costs while extending the useful life of assets. 6
7 City of Chesapeake, VA Decreased comeback rate by more than 75%. Before investing in a Fleet Maintenance System, the City of Chesapeake estimated that 8-14% of vehicles returned within 30 days to have the same repair done again. Now that comeback rate has been reduced to less than 2%, and each month Chesapeake recognizes employees who have zero comebacks for the month. 7
8 City of Culver, CA Established a PM program that is 90% on-time compliant. The cornerstone of maintaining an environmentally conscientious fleet is to schedule, perform, and maintain the PM s timely and correctly. Our PM program has received national recognition and is 90% on-time compliant, says Paul Condran, Equipment Maintenance Manager, City of Culver City. 8
9 Optimize Vehicle Usage and Fleet Size In a constantly changing economy, fleets are often called upon to do more with less. Optimizing the fleet size and make-up by evaluating the true cost for each piece of equipment and vehicle usage can help fleets continue to perform well while reducing costs. Fleet Management Software provides the tools to both analyze a fleet s vehicle usage and enable Fleet Managers to optimize the fleet size with strategies such as motor pool and equipment planning. 9
10 Gwinnett County, GA Reduced fleet size by 8%. Through careful analysis of lifecycle costs, historical data and detailed usage information, Gwinnett County deduced that a significant percentage of the fleet was being under utilized. By removing underused vehicles, Gwinnett County was able to reduce the fleet by 8%, saving the county hundreds of thousands of dollars per year in maintenance, operations and fuel costs. 10
11 Increased Access to Information Fleet Management Software provides easy access to the vast amount of information that is input into the system as well as collected through daily activities on the shop floor. Through extensive up-to-the-minute and historical reporting capabilities, intuitive dashboards, and the ability to automate, schedule and distribute reports, Fleet Managers have the tools required to make responsive, timely and fact-based management decisions including when to replace, how to maintain, and what actions to perform. 11
12 University of Colorado, Boulder, CO Proved $93,000 annual savings to the state of Colorado. When the University of Colorado fleet was faced with privatization, they used reports made possible by their Fleet Management Software to answer the state s hard questions and demonstrated that they would save $93,000 a year by opting out of state management. 12
13 Enhanced Parts and Inventory Management Fleets large and small rely on their parts and inventory management to be able to maintain and quickly make repairs on their vehicles. A Fleet Maintenance System provides the tools to optimize inventory by identifying and eliminating obsolete parts, track just-in-time inventory, research appropriate parts, and manage inventory replenishment. A Fleet Maintenance System can help Fleet Managers stock only the parts they need and have them ready when they are needed. 13
14 City of Portland, OR Cut their shelf inventory by $200,000 and reduced annual inventory time by half. The City of Portland was able to cut their shelf inventory by $200,000 and reduce annual inventory time by half by using their Fleet Management Software to eliminate an over-supply of parts and to end stocking obsolete parts. 14
15 San Diego Police Department Saves 20% a year in parts. The City of San Diego Fleet Services Department manages 1,500 vehicles which are serviced at one of eight locations across a large city. To cost-effectively manage parts, the police department has centralized inventory in a decentralized location. This allows the Fleet Services Department to expand their purchasing power by buying in larger quantities. The city estimates that this policy saves them about 20% per year in parts compared to each location ordering on their own. 15
16 Maximized Warranty Recovery Keeping track of equipment and vehicle warranty claims can save fleets thousands of dollars per year. Fleet Management Software gives companies a powerful management tool to collect warranty claims. Fleet Management Software tracks equipment and vehicle bumper-to-bumper warranty expiration date, and meter values for each equipment unit. In addition, a solution can track warranty claims made to manufacturers and vendors for equipment, equipment subsystems, or parts under warranty, and then credit settlement amounts against repairs. 16
17 City of San Diego, CA Recovers more than $100,000 per year in warranty claims. Prior to using their Fleet Management Software, the City of San Diego was not maximizing its warranty recovery and rarely took advantage of OEM warranties, thus leaving money on the table. Through their solution s warranty tracking capability, the Fleet Services Department recovers more than $100,000 annually in warranty claims. 17
18 FleetFocus Fleet Management Software Choosing a maintenance management system has far-reaching effects for a fleet organization. With the right solution, a significant ROI can be achieved in many high impact areas of a fleet s operation including workflow, vehicle utilization, and improved preventive maintenance. Over 500 fleets, ranging in size from 500 units to hundreds of thousands, use FleetFocus Fleet Management Software to manage all maintenance requirements of their vehicles and assets. FleetFocus software helps fleet managers and technicians manage their day-to-day operations more efficiently and economically while providing insight into trends and analysis to improve long-term planning. FleetFocus provides robust cradle-to-grave functionality for virtually every facet of fleet management. Click here to learn more about FleetFocus Fleet Management Software
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