The Fleet AdvantEDGE

Finance and Operations Not On The Same Page Regarding Focus Of Fleet Cost Management and Procurement

Significant Savings Realized When Leasing Compared to an Ownership Model Over the Same Period

Fleet Advantage, a leading innovator in truck fleet business analytics, equipment financing and lifecycle cost management unveiled today new analysis that shows the operating and financial benefits of a truck lease vs. buy structure for private truck fleet operators, as well as for-hire carriers. The analysis illustrates a missed opportunity for cost savings when comparing a seven-year ownership of one truck to a four-year ownership and a four-year lease of two consecutive trucks.

The annual CVSA (Commercial Vehicle Safety Alliance) International Roadcheck will take place this year beginning June 5 – 7, 2018.  This is the 31st year for this event, known to be the largest targeted enforcement program on commercial motor vehicles in the world.  The organization has on record that that nearly 15 trucks or buses are inspected every minute across North America during this 72-hour period! Here is some helpful fleet safety information to start educating your drivers about this event and its importance in assuring safe commercial vehicle operations, along with information in regards to the roadside inspection program. 

Fleet Advantage, a leading innovator in truck fleet business analytics, equipment financing, and lifecycle cost management made public today its 2017 Truck Lifecycle Data Index (TLDI) comparing all-in operating costs of early-model Class-8 trucks to 2018 model-year replacements. The TLDI shows significant cost savings when replacing older-model vehicles with 2018 MY trucks. According to Fleet Advantage’s ATLAAS (Advanced Truck Lifecycle Administrative Analytics Software), the TLDI shows that fleet operators can realize a first-year per-truck savings of $22,162 when upgrading from a 2012 sleeper model-year truck to a 2018 model, a 17% increase in savings compared with year-ago figures ($19,023) for 2017 model-year upgrades. 

Fleet Advantage was founded in 2008 on a number of principles formulated around information technology. It was also founded upon the necessity to help organizations improve their tractor fleets’ productivity and to reduce operating costs by improving their fuel efficiency from 6.0 MPG to 10.0 MPG. One of the cornerstones was the Greenhouse Gas Mandate that took effect in 2011 with its requirement to reduce CO₂ emissions, which can only be accomplished by improving fuel economy/MPG.  The technology and supporting data analytics have arrived, and we are now seeing the results we knew were there - tracking a goal of 10.0 MPG.

A recent success program called “Run on Less”, organized by the Carbon War Room and the North American Council for Freight Efficiency, proved that 10 MPG is possible using technology that are available on the market today. The results exceeded the original 9 MPG goal set by CWR and NACFE.

The annual CVSA (Commercial Vehicle Safety Alliance) International Roadcheck will take place this year on June 6 – 8, 2017.  This is the 30^th year for this event, known to be the largest targeted enforcement program on commercial motor vehicles in the world.  The organization has on record that that nearly 15 trucks or buses are inspected every minute across North America during this 72-hour period! Here is some helpful fleet safety information to start educating your drivers about this event and its importance in assuring safe commercial vehicle operations, along with information in regards to the roadside inspection program. 

There have been literally hundreds of articles and commentaries written on the environmental effects on the transportation industry of the latest GHG Regulations that were finalized on August 16, 2016.  While we all understand that the regulations will reduce millions of metric tons of CO2 into the atmosphere, few understand the long-term impacts on their operating budgets and their bottom line. 

With the high cost of the emissions regulations of the 2000’s still reeling in the minds of many transportation executives, these new regulations may trigger ‘Particular Matter’ anxiety.  However, this time is different, it delivers enormous cost saving opportunity that will last through the next decade—but only to those willing to change the status quo.

GHG Phase 2 Mandate - Affects on Heavy Duty Truck Fleets

A competitive advantage goes to the business visionaries that act faster than the competition to changes in the market providing a greater value at a lower cost.  The initial Greenhouse Gas mandates have already saved Class 8 transportation fleets millions of dollars in operating costs by reducing fuel consumption. On August 16, 2016 the federal government passed the proposed regulation, GHG Phase 2, to further tighten emissions and improve fuel economy for heavy duty trucks by up to 25% from 2017 through 2027 model years. 

The GHG Phase 2 final rule, issued by the US EPA and the NHTSA also contains the first-ever federal efficiency standards for new trailers. 

What do you think the most important operating component of a commercial motor vehicle (CMV) is?  Although there are many components, the most important one is the part that makes the equipment stop - the brakes!!!!! It is critical that brakes operate properly at all times to ensure safety.  The braking system on CMV’s is designed for tough conditions, but like anything, it must be inspected and maintained carefully and consistently.  By doing this, the brake system will operate properly throughout the life of the truck.

Brake Fleet Safety Week was established in 1998 as an annual outreach and enforcement campaign with the goal of improving CMV brake safety and awareness throughout North America.  More than 3.4 million brakes have been inspected since the program’s inception. 

Today, many companies are involved in Cause Related Marketing.  For instance, TOMS Shoes donates a pair of shoes for children all around the world who can’t afford them for every pair of shoes purchased. TOMS has put 10 million pairs of shoes on children’s feet in over 60 countries, which is obviously amazing.  But seldom in life can a company provide a product or service that contributes to all of humanity.  I feel fortunate to be associated with a company that does exactly that, and on this Earth Day I would like to express my appreciation for the forward-thinkers who recognize that the changes they are making not only save their companies money, but to also acknowledge them for doing the right thing for society and the planet.