Frequently Asked Questions

Why is a Utilization Study so Important?

Approximately 80% of light fleet vehicle costs are fixed.  Fixed costs are incurred whether the vehicle moves or not. Large fixed cost contributors include: [Varies slightly by country]

  • Depreciation [50%]

  • Finance charges/Interest [19%]

  • Insurance [6%]

  • Maintenance [6%]

Remove a surplus vehicle and it eliminates its fixed cost component from your budget. BFO studies typically find between 14%-37% surpluses so the positive impact on your budget can be sizeable.

How many vehicles do you need?

Do you know how many fleet vehicles you really need?

Monthly mileage thresholds, historic benchmark ratios of staff-to-vehicles and trips per day simply do not work. These measures ignore critical decision factors such as:

  • Concurrent vehicle use at each site – how many vehicles were absent from base at the same time?

  • Vehicle destination – where did the vehicle go?

  • Trip planning efficiency – did a vehicle criss-cross back and forward when one planned trip could have halved the mileage?

  • Offsite parking duration at sites – did the vehicle park all day at the airport, a training session or a conference not far from home base?

  • Time of day/week usage – are vehicles mainly used in the mornings hours or do some day have much lower use?

 

That’s why it is important to collect actual utilization data to make the right decisions and optimize vehicle fleet numbers.

 

How do I gather vehicle utilization data?

  • Use BFO GPS data loggers for 5-weeks to perform a vehicle utilization audit.  The self-install devices are supplied at no charge.

  • Logbook audits regularly provide results that meet resistance. Our research shows that logbook audits show data inaccuracy levels that can exceed 40% at times either due to trip omissions, illegible writing and unreliable data recording. It occurs even with the best Quality Assurance measures put in place.

  • Booking systems regularly hold 20%-30% vehicle surpluses.  Staff do not cancel bookings or overbook time.

  • GPS is the one data source that staff trust.  Use GPS to for audits and remove the conflict that mileage, logbooks, booking systems, and other methods generate at findings implementation time.

Trucks, Vans or Cars?

BFO utilization audits are ideal for trucks, vans and car fleets.  Data can be gathered so long as the vehicle has a 12/24/42V power socket inside the vehicle.

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What does a vehicle utilization study cost?

  • BFO charges on a small per vehicle per day basis for the recommended 5-week data collection period plus a modest set up fee. There are no ongoing costs or long term contract obligations.

  • Studies breakeven if 1%-2% of the fleet is surplus and is eliminated.  Most BFO clients achieve a 20:1 ROI or more.

  • Pricing is affordable so the service can be repeated every 3 years to keep vehicle levels at their optimum.             Click here for a quote.

  • BFO QueryBuilder is free to our clients as are the supporting software applications [e.g. Internet Explorer].

What fleet size benefits the most?

  • Fleets with 100 or more vehicles will typically achieve a high ROI.

  • Fleets with 100-299 vehicles will typically achieve a 14%-37% fleet size reduction with no loss of service delivery capability.  Fleets with 300+ vehicles will usually find reductions of 25% or more.

Why do a Vehicle Utilization Audit?

  • To accurately calculate the right number of vehicles to meet your business needs.

  • To find the right number and mix of vehicle types and sizes to do the job.

  • To explore if the right fleet processes are in place to manage the fleet.

  • Identify how many vehicles should be replaced in the next vehicle procurement cycle. An audit may indicate that no new fleet vehicles are required.

  • Optimize vehicle counts before new vehicle lease or fleet management contracts are advertised. Lower vehicle counts and more accurate knowledge of mix requirements will optimize your contract volumes and save you money.

  • Generate cash flow from savings and vehicle disposal to invest in green vehicle technologies. [E.g. hybrids, electric].

How does the BFO methodology work?

Watch the video below for more information on the fleet optimization methodology that BFO applies to optimize fleet size. Click here for more information on a Methodology That Works.

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Vehicle Utilization Study Best Practice.