New Vehicle Replacement Tool Designed for Fleet Managers

Every wonder how to determine the best time to replace vehicles in your fleet?

A new software programs aims to put the data directly into a fleet’s hands allowing them to pinpoint the right time to replace a vehicle.

The vendor is ARI and the approach attempts to help companies gather and analyze data from their fleets to create a ranked list of which vehicles in their fleets should be replaced first.

Customizable for each client, the analysis takes into consideration factors important to the operation of each fleet, prioritizes the replacement needs of the entire fleet and recommends the order of replacements that optimize total cost of ownership.

The tool analyzes eight criteria, including age, mileage, maintenance expenses (for the last year and over a vehicle’s lifetime) and total downtime. It also accounts for how important a vehicle is to the operation of the company. For example, critical vehicles like a crane or a specialized work truck without a back-up would be prioritized in the system. It also takes into consideration the lead-time for replacement and the availability of like-kind rentals in the ranking process.

Companies tend to err on the side of caution, keeping vehicles in their fleets too long, according to Tony Candeloro, VP of product development and client information services at ARI. “Being able to recognize the tipping point of when it makes financial sense to replace a vehicle instead of maintaining it has been a consistent challenge for fleet managers. In recent years, they have been able to get a better grasp on the matter through information provided by their fleet management companies,” he said.

Upon running a Vehicle Replacement Prioritization report through, users will have a ranked list of which vehicles they should replace first, based on the priorities they determine when setting up the system. Users can drill down into the report to see how each vehicle ranks in a particular area. Fleets can rank vehicles by geographic region or company hierarchy and users can see how each vehicle’s ranking has evolved over time. A company can simply start at the top of the list, replacing as many vehicles as its budget allows.

 

Category: Featured, Fleet Maintenance