Asset Acquisition and Disposal

Mercury provides services to start-up companies, established enterprises, and professional associations that furnish goods and services to the fleet industry and fleet management profession, including:

• Fleet utilization optimization and rightsizing studies

  Close (X)

  Periodic utilization reviews and rightsizing studies can pay for themselves many times over in increased productivity and lower operating and capital costs. Mercury has performed these studies for countless organizations over the last 20 years.

  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.

  Mercury's experts can guide and accompany you through the three steps of a rightsizing study:

  • 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 services.
  • 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.
  • Negotiating the final disposition of the vehicles deemed under-utilized.

  The utilization review and rightsizing study ranks as on 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.

• Sustainable/green fleet management strategy development
• Determination of optimal vehicle replacement cycles
• Development of fleet replacement plans

  Close (X)

  The orderly, efficient replacement of vehicles and equipment that make up your fleet is not at easy as it sounds. Many organizations struggle with it. Lacking complete understanding of their fleet's operating costs and capital costs, and often not appreciating the fleet's contribution to the success of their mission, they tend to base replacement decisions on short-term fiscal considerations or on the breakdown or failure of a vehicle.

  Fleet replacement costs are always easy targets for budget cutting, especially in times of economic stress. But in most cases, satisfying short-term budget concerns only postpones expenses while leading to higher overall costs and lower levels of service and user satisfaction.

  Mercury consultants have been providing fleet replacement planning services to organizations like yours for decades. We have designed programs that have brought reliability to fleet operations along with short-term fiscal stability and long-term economic value to our clients.

  Mercury can establish realistic vehicle lifecycle standards and strike the desired balance between your capital expenses and your operating expenses. Together, we can also determine the method of replacement financing that is best for you, such as ad hoc appropriations, lease-purchase, debt financing, or a hybrid approach.

  Our fleet replacement planning services include:

  • Review of existing replacement plan criteria
  • Identification and analysis of alternative replacement funding sources
  • Development of a fleet replacement fund
  • Audit of existing replacement fund for proper balance and utilization
  • Development of fleet replacement cycles and scheduling services
  • Inventory valuation
  • Lease-versus-buy analysis
  • Mileage reimbursement and user charge-back methodologies
  • Vehicle and equipment replacement planning software

  Mercury is always dedicated to securing management's commitment to implementing real-world, best-practice solutions. After our consultants analyze your requirements and recommend a long-term replacement strategy, we can model several alternative funding and purchasing approaches so that you have the quantitative information to justify your final funding approach.

• Evaluation of lease versus buy and other capital financing strategies

For more information on our consulting services and business solutions, please contact us via our online form, by email at , or by phone at 301.519.0535.