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Achieving over 35% saving on fleet costs

The fleet

A government department with a light vehicle fleet of approximately 450 four-wheel and two-wheel drive vehicles operated in the 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 situation

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 80000 kilometres per annum. Utilisation conditions fluctuated with changing works programs and staff requirements.

Fleet audit

An extensive staff consultation process was conducted 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.

The outcome

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.

Savings scenario 1
Annual fleet costs – before  $4,240,000
Fleet audit (one off)  $95,000
Annual fleet costs – after audit  $2,640,000
Annual savings  $1,600,000

How does Unifleet reduce fleet management costs?

If the fleet had been managed with Unifleet at the audit stage, the cost of the initial fleet analysis could have been reduced by about 75%, because Unifleet’s standard reports could have been run and cost savings identified from a desk rather than requiring extensive travel for site visits and data collection. As well as the reduction in initial fleet audit costs, fleet management savings would be delivered earlier.

Once the initial operational savings are made, and Unifleet implemented, the fleet manager can run reports at will and achieve incremental savings and efficiencies using existing fleet management resources, as well as substantially avoiding the costs of future audits. Additional savings can be made by introducing Uniqco’s fleet management mentoring services to the mix.

As efficiencies are achieved progressively, savings will compound each year. The potential wastage such as the initial $1.6m will never accumulate. The compound effect of regular savings achieved by efficient fleet management over a 5 to 10 year period is very significant.

Savings scenario 2
Annual fleet costs – before $4,240,000
Unifleet implementation (one-off) $7,000
Unifleet annual $10,000
Fleet audit based on Unifleet reports (one-off) $25,000
Free fleet management consultation

Unifleet provides just the right information to run a fleet effectively.

Uniqco's plant and vehicle management specialists have extensive worldwide experience - from a small fleet to total management reviews of major plant and vehicle fleets Australia-wide.

Contact Uniqco now for a free introductory consultation (value $180) to help you achieve lower fleet costs, easier compliance, and greater efficiency.






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