truck dealers. The other is for DCs
to take on the task themselves, using
vehicle management systems that
collect and analyze operating data.
These systems typically include a
device installed on each truck that
captures information and transmits
it to fleet management software,
which then produces a variety of
reports. (For more on these systems,
see “remote control,” September
2008, www.dcvelocity.com/arti-
cles/20080901strategicinsight.)
Typically, data analysis begins
with on-site audits that track truck
operations over 30 to 90 days—long
enough to provide an accurate picture of how individual trucks are
being used and how the fleet as a
whole is performing. The object is
to create a baseline against which
specific savings can be measured.
With accurate data in hand, managers can identify areas that are ripe
for improvement. They can deter-
mine which trucks have the highest
maintenance costs, figure out if the
fleet is correctly sized and if the
equipment is appropriate for the
job, measure drivers’ productivity,
and track causes of avoidable maintenance and additional costs (like
damage caused by operators to
product, racks, and the trucks
themselves).
The results of these audits sometimes come as a shock to managers,
vendors say. In a white paper titled
5 Ways to Reduce Costs of Your
Industrial Vehicle Fleet, I.D. Systems,
a developer of vehicle management
systems, cites data showing that in
an eight-hour shift, a truck typically
is in motion for just two hours and
is moving a load for only one.
And that’s just the tip of the iceberg. Aitcheson says—and other
fleet specialists agree—that it’s not
uncommon for these audits to show
that a given fleet is 20 percent (or
more) larger than necessary. Nor is it
unusual to find short-term rental vehicles
on the floor for months at a time.
Aitcheson even tells of one customer that
spent $27,000 in a single year on maintenance for a seven-year-old truck.
Such ignorance is certainly not bliss. In
fact, it’s downright expensive, says Stan
Garrison, manager of fleet sales for Hyster
Co. “There’s no point in hanging onto a
truck past its useful economic life,” he says.
“That drives up ownership costs and productivity costs because of downtime.”
Helping to Keep Things
Rolling for Over 50 Years
• metal rollers
• plastic rollers
• sleeved/coated rollers
• urethane tapers
• directional rollers
• torque limiters
• troughers
arings/bushings • be
• metal rollers
• plastic rollers
• sleeved/coated rollers
• urethane tapers
• directional rollers
• torque limiters
• troughers
• bearings/bushings
•
•
•
•
•
•
•
•
t & package handling
culture
o/chemical
/beverage
ibution
ing/publishing
& unit handling
ufacturing
pallet & package handling
agriculture
petro/chemical
food/beverage
distribution
printing/publishing
bulk & unit handling
manufacturing
Markets Served Markets Served
•
•
•
•
•
•
•
•
One step at a time
Collecting the information needed to analyze fleet costs is one thing. Using the data
to make changes in fleet operations and
driver behavior is quite another. Despite
the obvious benefits, it’s not always easy to
get everyone on board. McKean says that
when it comes to “selling” a fleet downsizing program to operations managers, the
key is having accurate performance data
in hand. “If we can prove utilization is
high and the fleet is up and running every
day, then perhaps some trucks can go
away,” he says.
An effective cost-cutting program does
not necessarily require jumping in with
both feet. There’s nothing wrong with taking it one step at a time, says Aitcheson.
“For a company that wants to pursue [a
fleet cost-reduction program] but does not
want to commit to all the processes and
procedures, it could be as simple as a
national preventive maintenance program,”
he says.
Garrison is of the same mind. He notes
that getting rid of older trucks in stages can
help overcome managers’ fears that a
downsizing program will disrupt day-to-day operations. “One of the most difficult
things we [deal with] is to get a buy-in from
operations,” he says. “The floor managers’
job is to get stuff out the door, and it takes
a little bit of time to earn their trust and let
them know we’re not just going to leave
them hanging out there.”
www.ralphs-pugh.com
tel: 800.486.0021
fax: 800.995.3942
e-mail: sales@ralphs-pugh.com
www.ralphs-pugh.com
tel: 800.486.0021
fax: 800.995.3942
e-mail: sales@ralphs-pugh.com
Editor’s note: For a more detailed discussion of how to conduct a lift truck fleet
audit, see “lean fleets,” February 2009,
www.dcvelocity.com/articles/20090201
equipmentapplications.
