Technology in Vehicles is Often Worth the Cost
Not only do on-board tech tools increase resale value, they also provide data to help you calculate TCO throughout the lifecycle. Find out how.
Greg Raven, department head of customer experience for ARI, discussed how to leverage data to optimize processes and factors that affect fleet lifecycle management, in a recent article posted by PurchasingB2B titled Fleet Lifecycle Management.
Year after year, fleets are expected to do more with less. As a result of this demand, the ability to track and manage a vehicle’s lifecycle costs has become more important than ever. “Fleets are much more in tune with lifecycle management because organizations continue to challenge them to do more with less—it’s always been about the numbers because fleet is such a large spend for so many companies,” said Raven.
Fleet experts also pay attention to certain features, such as Bluetooth or dashboards with touchscreens, which make vehicles more attractive to the resale market. “Overall, when you increase the vehicles’ appeal at resale, and while fleets don’t recoup 100 percent of the costs, they will gain more than if they didn’t have them at all,” says Raven.
Raven also discussed how fleets are using data to understand when it is time to cycle a vehicle out of the fleet. In some cases it can cost as much to upfit as it can to acquire, and extending the lifecycle is the only way they can recoup their initial investment. Access to increasingly detailed data helps them to understand whether choosing to do that is a strategically smart thing to do. “The technology in today’s vehicles pushes an extraordinary amount of data that help identify and educate us about the vehicle’s status mid-life cycle.”
As telematics data becomes increasingly common, drivers recognize the technology improves safety, efficiency and productivity. “Telematics really allows us to determine how the drivers are impacting the total cost of ownership, which can include fuel economy, extra stress on the brakes and tires and even the suspension,” added Raven. An example of proactively using this data is ARI’s Driver Scorecard®. The program identifies drivers who display risky driving behaviors and uses this information to provide additional driver safety training to help proactively change the driver’s behavior.
You can read the full article here.