Cycling cures downtime and rental costs
|
Situation |
Field technicians from the telecom industry started complaining about downtime and increasing severity of repairs due to 50% of units being fully amortized. With their fleet being older, drivers were placed in rentals for long periods of time and did not want to get rid of the newer, nicer vehicles. The maintenance costs were high but not high enough to offset lease costs decrease. |
|
Solution |
Our Maintenance Manager recommended managed rentals and our downtime program. The maintenance policy change allowing Element to make more repair decisions on behalf of the client. The consultant showcased the financial impact of replacement with 5-year replacement projections in factoring lease, maintenance and rentals. |
|
Impact |
Overall depreciation costs stabilized with maintenance costs down $11/unit/month or $450K+ (total fleet). This resulted in a lower number of spare vehicles and the negative feedback from field technicians stopped. |
Never miss an update
Subscribe for more news and thought leadership from Element.