How to Measure Your Fleet’s Total Cost of Ownership
Your Total Cost of Ownership (or TCO) represents the sum total of all costs associated with managing your fleet. From acquisition, to maintenance, to disposal, understanding your TCO is crucial in making a difference to how your fleet operates.
But first things first…
What’s Included in Your TCO?
Your initial investment is the price at which you purchase vehicles or equipment; these are the foundation for your TCO calculations.
While this might sound like a complete no-brainer, it’s important to consider whether or not you’re getting the best possible deal when it comes to your assets and vehicles – after all, the lower your initial investment, the more optimal your TCO will be!
In order to ensure you’re getting the most out of your assets, implementing driver training programs is a good way to ensure the longevity of your vehicle/equipment lifespan. The costs of driver training can be two-part: first, the time associated with training a driver AND the service/company that does the training.
If your driver turnover is high and you find yourself running numerous training programs throughout the year, this is all added to your TCO.
When it comes to managing your fleet, storage is probably pretty low on your priority list – but sourcing a cost-effective storage method could mean tens of thousands in savings from your TCO!
Operational costs consist of a broad array of things that eat into the bottom line – from fuel, to administration, to maintenance, it’s crucial that you ensure these costs are optimized to their fullest extent.
Not sure where to start in optimizing your Total Cost of Ownership? Speak with a Latium Expert today!