The foundation of an equipment cost model includes the following principals: an asset lifecycle model, operating maintenance & capital budgets, proactive expense monitoring, equipment replacement and remarketing strategy and a contingency plan for capital budget constraints.
- Budget Development and Cost Control — Develop or revise annual capital and maintenance budgets and place tools to monitor proactively.
- Operating Expense Control — with proper tools in place you will be able to monitor cost as the month progresses rather than waiting until the fifth (5) day of the following month.
- Fuel Conservation — Fuel Prices will rise again, are you prepared?
- Fleet financial risk management.
- In-House Leasing/Charge-backs
- Vendor relations — Building a relationship or affiliation with your vendors can mean the difference between success or failure in either cost or service.
- Warranty reimbursement
- Parts inventory and track — Do you have the mission critical parts on hand?
- Liability Assessment — Litigation risk management.
- Outsourcing Financial Analysis — Should your organization outsource or when does it become cost-effective to bring it in-house?
For more information — please contact us about our Fleet Cost Control.