Your company has a large fleet of vehicles representing a high total cost of ownership ? Fleet management is a solution that allows you to reduce costs associated with fleet management and to carry out savings on purchasing, maintenance, contracts, as well as better driver management.
What is TCO (Total Cost of Ownership)?
TCO means in French "total cost of ownership"The TCO of a vehicle fleet refers to the total costs, including indirect costs. Direct costs include:
- the purchase of vehicles,
- the purchase of garages and parking spaces or the rent paid to rental companies to park your fleet,
- regulatory fees (registration certificates, insurance),
- costs related to the maintenance and use of vehicles (fuel, maintenance, repairs, etc.).
THE indirect costs are irregular and differ for each park. These may include:
- advertising campaigns,
- employee training,
- software used for fleet management,
- depreciation of the value of vehicles,
- carbon footprint taxes and tax fees.
How to calculate the TCO of your vehicle fleet?
To calculate the TCO of a fleet of vehicles, it is necessary to add the various expenses which influence the cost of each detention. It is necessary to take into account the contractual data representing approximately 36% of the total.
They include the LLD (long-term rental) calculated based on the base price of the vehicle, its duration, the mileage specified in the contract, and the residual value at the end of the contract. The calculation also includes additional services: tax costs, fuel consumption, CO2 emissions tax, maintenance, and insurance.
One last element to remember is the total cost of mobility (TCM). This concerns employee travel (train tickets, plane, taxi).
TCO optimization: points to consider
After obtaining the cost estimate, the fleet manager studies how to manage a fleet of trucks or cars. It is recommended to choose the vehicles carefully in order to to optimize costs by favoring those who consume the less fuel or who have a smaller size saving space in the park.
It's important to select suppliers (insurance, oil companies, garages, maintenance) to get the best rates. It's also helpful to consider how your fleet will evolve over time.
So you have every interest in taking advantage of telematics for TCO !
Finally, interact with drivers is essential. They know how the fleet works and can advise you on how to optimize it, but also on the circuits to favor to reduce mileage.
