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utilization review and rightsizing |
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In
the fleet management business, periodic
utilization reviews and rightsizing studies
can pay for themselves many times over in
increased productivity and lower operating
and capital costs. Mercury Associates has
performed these studies for many clients
including six states, three major cities,
and a number of federal government agencies
and corporations.
Even in well-managed fleet operations with
solid purchase justification procedures and
cost chargeback rules, a periodic
rightsizing study will usually uncover
vehicles, equipment units, and other assets
that simply are no longer needed. In some
cases, Mercury studies have enabled clients
to reduce their fleet size by as much as 20
percent while lowering their replacement
costs, repair bills, and discretionary-trip
expenses. |
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Mercury’s experts can guide and
accompany you through the three
steps of a rightsizing study: |
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Developing a
database with fleet inventory and
vehicle usage data, including
vehicle identification numbers,
odometer readings, users’ or user
agency or department names, and
hours in service. |
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Identifying
candidate vehicles for reassignment
or disposal when usage appears to be
questionable or below minimum
thresholds for productivity. This
step includes determining exactly
how each vehicle is used, who uses
it, whether it is accessible to
other employees, where it is kept at
night, and transportation
alternatives for the vehicle’s
users. |
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Negotiating the
final disposition of the vehicles
deemed under-utilized. |
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The utilization review
and rightsizing study ranks as one of the
best practices that a fleet manager can
employ. Combining these studies with
realistic assignment justification
procedures and clear guidelines for vehicle
utilization and cost charge-backs will help
ensure cost control and consistently high
productivity for your fleet operations. |
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Mercury
Associates, Inc.
Professional Fleet Management Consultants
16051 Comprint Circle
Gaithersburg, MD 20877
301 519 0535 Office
301 519 0536 FAX
email:
contactme@mercury-assoc.com
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Fleet Management
Consulting Services and Business Solutions,
Simplified ™ |
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© 2006 Mercury
Associates, Inc. |
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