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Resources for Fleet Management

The American Transportation Research Institute (ATRI) has been studying truck operating costs since 2008. And while it probably comes as no surprise, ATRI reports that repair and maintenance costs are on the rise. Over the long-term, maintenance and repair now account for 10% of a fleet’s total average marginal costs. That number is up from 6%.

Some of the increase is due to a higher number of average miles driven for trucks which results in more wear and tear on vehicles. Additionally, the complexity of today’s trucks makes them costlier to maintain and repair.

Since this is the case, Chevron recently partnered with Fleet Owner to offer practical advice from experts for keeping your fleet at its best.

Fleet Owner’s Jane Clark shared six outsourcing options that are available to companies:

• Dedicated Contract Carriage – Dedicated contract carriage is a complete outsourcing of the transportation function, leaving the company to concentrate on its revenue-generating business.
• Full-Service Leasing – With full-service leasing, the company keeps drivers on its payroll but outsources the assets (a.k.a. the trucks).
• Guaranteed Maintenance Agreement – In this scenario, the fleet procures the trucks but wants an outside service provider to handle the maintenance of those assets.
• Variable Maintenance Agreement – In a variable maintenance agreement, costs are pegged at a certain amount and if the actual maintenance exceeds the amount, the fleet gets billed for the difference. If the cost is less than the pegged amount, the fleet would get a refund or credit.
• PM Service Agreement – This type of plan is well suited for older trucks or ones that are domiciled in one place, in which the fleet pays as it goes.
• Managed Maintenance Services – In this case, the fleet pays a small fee to be a member and then the service provider gives the fleet a preferred rate on labor and parts when repair or maintenance is needed at any of its facilities.

Saying that outsourcing is not all or nothing, Clark writes, “You can choose your outsourcing arrangement based on your core competencies, keeping things in-house where you have the skills, technicians, and tooling to complete the job.”

For more resources for small and medium fleet maintenance, click the link below for more information.