Fleet management: A matter of dollars and sense By Carmen Daecher

Building, maintaining, and deploying your fleet is the core of your business. The struggle between revenues and costs are most evident when it comes to fleet management. And competitive advantage or disadvantage is most clearly defined in this area.

The purchase or lease of your transportation equipment is a function of your financial position and market factors. The need for this decision is a function of demand by fare-paying passengers.

Given the price of equipment, there is no doubt you must generate as much revenue from it as you can. Obviously, to limit operating costs is fundamental to this. So, too, is maximizing passenger miles.

One of the critical crossroads in achieving these objectives is fleet maintenance. Knowledgeable service technicians, a properly managed preventive maintenance program and an adequately equipped facility is a lower-cost alternative to mechanical failures, out-of-service orders, and premature equipment replacement. And healthy communication between drivers and mechanics should minimize any surprise problems and roadside breakdowns. Keeping vehicles out of service for as little time as possible is the challenge.

Finding ways to avoid en route delays such as traffic congestion and toll lines can be a competitive advantage. The avoidance of such delays goes hand in hand with cost-efficient vehicle performance and minimizing mechanical problems during trips.

Maximizing route efficiencies and flexibility is crucial for scheduled and on-demand services. Vehicle operating efficiencies in these situations will significantly influence operating costs. And, effective communication between drivers and dispatchers is essential to efficient fleet utilization.

If these issues are properly addressed, they not only should produce higher revenues and lower costs, but will also maximize your fleet's safety performance and customer satisfaction. Good safety sense is good business, and it will enhance the bottom line.

Your future competitive edge and success in maximizing revenues while limiting costs will depend, in large part, upon your acceptance and use of technology. Engines and other vehicle components are progressively becoming electronically "intelligent." Smart cards, electronic "tags," on-board diagnostics, electronic toll and customs pass-by, real-time traffic information, electronic navigation assistance, and alternate route determination will be available in the foreseeable future. Information concerning credentials, registrations, etc. from your base state to anywhere in North America will be immediately available when needed.

As you strive to enhance your operations, be aware of the future opportunities. And remember that the best bottom line, safety performance and customer satisfaction are outcomes of a solid fleet management program.

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