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.