Stacy Clark, MBA, Fleet SME

Stacy Clark 2011

Asset Lifecycle

Buy

Fuel

MaintainRefurb

Liquidate

Stacy Clark 2011

Total Cost of Ownership (TCO)

Depreciation

Fuel

Maintenance

Stacy Clark 2011

How do I manage and optimize my TCO?

Purchasing

MaintenanceFuel

Stacy Clark 2011

Purchasing Excellence

Vendor Management

Residual Value

Specification Optimization

Key to Success:

Establish a data

driven asset

holding period that

can be supported

by CAPEX and

OPEX.

Considerations:

•Data Driven Decision

•Light Duty – Shorter

•Med/Heavy Duty – Mid

•Specialized – Longer

•Competitive Bid (RFQ)

•Own vs. Lease

•Green Strategy (AFV’s)

•Refurbishment strategy

•Competitive/Timely

Remarketing

Stacy Clark 2011

Fuel Excellence

Sourcing Strategy

Driver Training &

Accountability

Asset Strategy

Key to Success:

Evaluate Internal

versus External

strategies to

provide the

balance between

price, flexibility

and report

automation.

Considerations:

•Fuel Cards, Bulk, Mobile or a

combination

•Green Strategy (Alt Fuel)

•Driver Training

•Accountability via Telematics

•MPG & Idle Tracking

•Inventory Management

•Reporting (IFTA,

Location/Driver Perf)

Stacy Clark 2011

Maintenance Excellence

Communication

SafetyQuality

Key to Success:

Align

maintenance

programs to

holding period

strategy.

Considerations:

•Operator Coordination

•Operator Inspections

•Timely/Thorough PM’s

•Rework/Breakdowns %

•Parts sourcing/stocking

strategy

•Corrective Maint Strategy

•DOT Safety

Stacy Clark 2011

How can we help?

Stacy Clark 2011

TCO/Synergy Baseline

Baseline

Evaluate TCO data – CAPEX and OPEX

Benchmark TCO data – CPM, CPH and CPA

Evaluate current holding period by asset type –

Light, Medium, Heavy and Specialty

Evaluate current fueling strategies – External (Fuel

Cards & Mobile) and/or Internal (Bulk Tanks)

Evaluate current maintenance program alignment

with current holding period – PM Interval, PM Type,

CM Rationalization and overall quality

Stacy Clark 2011

TCO-Purchasing Component

Purchasing

Evaluate vendor/bid solicitation strategies

and results

Evaluate core asset specifications and how

they drive cost, reliability and remarketability

Evaluate current green/AFV strategies

Evaluate liquidation strategies/returns

Stacy Clark 2011

TCO-Fuel Component

Fuel

Evaluate current fueling strategy

Evaluate current pricing, flexibility and

reporting

Evaluate green/AFV opportunities

Evaluate current results to include MPG, idle

and inventory accuracy

Evaluate driver training/accountability

opportunities

Stacy Clark 2011

TCO-Maintenance Component

Maintenance

Evaluate current maintenance strategy

Evaluate current communication/scheduling

process and service levels

Evaluate quality of current maintenance via

hands on inspections and rework/breakdown

data points

Evaluate current parts sourcing/stocking

strategies

Evaluate current asset safety

Stacy Clark 2011

TCO-Summary and Implementation

Summary Document Provide executive summary of findings backed by

detailed executable recommendations to favorably improve TCO

Implementation/Change Management Asst. Provide assistance with the implementation of

Purchasing, Fuel and/or Maintenance Excellence recommendations

Establish game plan, initiatives for performance and process improvement opportunities

Assist in the transformation of the organizational culture regarding all facets of asset optimization

Institute improved data tracking & metrics to ensure ongoing situation awareness and favorable trends

Stacy Clark 2011

Questions?

Stacy Clark 2011