Savings outweigh costs many times over

Case study 1

Private sector client with light vehicle fleet of approximately 300 four-wheel and two-wheel drive vehicles operated in arid conditions and with all servicing, maintenance and repairs undertaken in-house. Vehicle kilometres travelled vary from 10,000 to 80,000 kilometres per annum.

Downtime is critical to operations and the nearest replacement parts distributor is 800 kilometres distance from the field. Following completion of a comprehensive review of vehicle selection / profile including operational suitability, change over, servicing and maintenance facility operations, recommendations provided an estimated saving to the organisation of in excess of  $1,250,000 per annum in ownership and maintenance costs for the fleet.

Case study 2

Government department with light vehicle fleet of approximately 450 four-wheel and two-wheel drive vehicles operated in a capital city and in a range of rural to arid conditions with extremes in climate changes for the management, construction and maintenance of a state highway network.

The fleet is leased under government contract. FBT is a major factor in the fleet cost structure with commuter and private use issues needing to be addressed. Vehicle kilometres ranged from less than 7000 to 80,000 kilometres per annum. Utilisation conditions fluctuated with changing works programs and staff requirements. Through an extensive staff consultation process including site visits and analysis of the vehicle utilisation, pooling, selection / profile, accessories, leasing arrangements, FBT payments, policies and procedures including change over criteria and refurbishment prior to change over and management of the fleet, a reduction in overall vehicle numbers of approximately 220 vehicles has been achieved, culminating in vehicle operational savings of  $1,600,000 per annum. The new vehicle structure, operational procedures and profile introduction have occurred with no loss in operational efficiency or effectiveness.

Case study 3

Local Government organisation with approximately 435 items in the plant / equipment and light / heavy vehicle fleet.

The organisation embarked on a planned review and implementation process designed to reduce operating costs of its plant and increase the productivity of the mechanical workshop. The review resulted in reducing the number of items of plant / equipment and vehicle fleet to 400 and approximately $50,000 per annum saving in fuel costs since monitoring commenced, a one off reduction in capital expenditure of $800,000 and approximately $200,000 per annum saving in operational costs with a further $50,000 per annum in repairs and maintenance costs.

The savings were realised through development of a five year rolling forward program for all heavy vehicles and mobile plant based on a combination of kilometres travelled, engine hours and age, critical assessment of the needs of each new purchase in terms of its specification to suite the proposed application, varying light vehicle changeover periods reflecting market conditions and taxation considerations, implementation of private sector practices and industry benchmarks in the mechanical workshop and a local area work agreement incorporating service agreements with operational business units.

Case study 4

Local Government organisation total light fleet management.

The organisation commissioned Uniqco to provide their expert management systems to procure and manage a small fleet of 35 cars and utes. Changes to the optimum replacement points, correct vehicle selection and negotiated supplier service contracts has reduced fleet downtime and improved efficiency in the operation of the light fleet. Subsequent modified vehicle disposal programs and optimising model selection resulted in a capital cost savings of the order of  $18,000 in the first 4 months of the program. This coupled with the improved service up time on the fleet will reduce overall expenditure in operating the fleet significantly.