Vehicle Utilization Analysis
Research indicates that 20% or more of fleet vehicles are surplus to requirements. A major contributor to the problem has been high fleet utilization audit costs using paper-based logbooks. A second contributor is the misleading industry belief that fleets can be sized using distanced traveled per month analysis.
Most reputable management consulting firms will not size fleets using distance traveled methods yet a large number of vehicle leasing companies offer this option. Fleet right-sizing requires a knowledge of vehicle usage patterns to understand where and when vehicles are required. ‘Distance traveled per Week/Month/Year’ methodologies can only provide a small subset of the required data.
Our MVOS system provides clients with concurrent vehicle usage data that clearly reveals vehicle usage patterns. The data can help your organization determine peak demand times, morning/afternoon use, day of the week patterns and many other important inputs that must be understood when making informed fleet sizing decisions.
The correct application of a fleet right-sizing survey can result in ongoing savings for your organization.
Concurrent Vehicle Usage Information
Concurrent Vehicle Usage will confirm vehicle number requirements for your fleet. The analysis accurately identifies areas where vehicle numbers are above or below the optimal levels.
Across the board cuts in vehicle numbers penalizes prudent managers who have efficiently controlled their vehicle resource. MVOS identifies these efficient managers and removes vehicles only from less efficient managers.
High demand variance utilization cannot be determined by using mileage data alone. Concurrent analysis reduces the risk of cutting vehicle numbers in departments that have high demand variation over certain periods.
Visit the graphical representations in the report example to study the effect of Concurrent Vehicle Usage Analysis on a fleet that previously used vehicle leasing company Distanced Traveled per Month techniques to size their fleet.
The Importance of Concurrent Vehicle Usage Analysis:
- Understanding Concurrent Vehicle Usage and demand patterns throughout the day is more important than analyzing the distance traveled per month.
- A manager must identify the number of vehicles being used simultaneously at a location and the time of day use occurs.
- Informed fleet size decisions cannot be made using distanced traveled per month type analysis. The analysis ignores the fact that vehicles can meet usage thresholds if they are used extensively for one day per week then sit idle for the remaining 4 days.
- Driving a vehicle 25 miles to and from work each day with no other daily usage is enough to satisfy most distance traveled standards.
