Operations

The Cost of Downtime: Keeping Drivers On the Road

Posted on September 9, 2013

At a Glance

Downtime costs are important factors in running a fleet. Determining how much they are begins with knowing what the component costs are, and developing a formula by which they can be applied to events.

  •     Know your drivers’ employment costs, including salaries, benefits, even bonuses and commissions.
  •     Know the productivity costs.
  •     Track downtime in detail.

There are costs incurred when providing company vehicles. Some of them are variable — such as fuel, maintenance and repair, and tires — and change as use changes. Some are fixed costs — such as depreciation and insurance — related to simply having those vehicles.

The standard categories of fleet cost are “hard” costs, expending company funds when incurred. And, “soft” costs, those that don’t necessarily result in a direct expenditure, but are every bit as real as hard costs. When drivers aren’t driving, when they aren’t out doing the job because of a mechanical problem or an accident, they incur downtime costs, which can be both hard and soft, and add thousands of dollars to a fleet’s budget.

The full story at Automotive-Fleet.com.

View comments or post a comment on this story. (0 Comments)

More News

Company Accused Of Ditching Couples At The Altar

One client says once the deposits were collected, the Cleveland-based business stopped responding to their calls and emails.

Uber Drivers Complain About The Silliest Things

TNC Travesties Of The Week: Some independent contractors just don't have what it takes to be chauffeurs.

Limo Caddy Can Upgrade A Back Seat To First Class

LCT WEB-X-CLUSIVE: Going the extra mile for customers is made easy with PLATROS’ patent-pending seatback pocket device.

Why You Need A Social Customer Service Strategy

Whether you like it or not, people are talking about your business on social media.

Treat Your Employees Right For Maximum ROI

There’s no better way to show your appreciation than giving them what they need to do their job. 

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blogs

See More

See More

See More

See More

LCT Store

LCT Magazine - December 2016 $12.95 GLOBAL/INTERNATIONAL ISSUE COVER STORY: * The Coolest Operators on the Planet * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close