Fleet cost optimisation
Driving sustainablility and savings with Ayvens MHC Mobility Services Thailand
Fleet costs are made up of many factors and staying on top of them is essential for any business to budget for the future. Whether you aim to monitor or manage your fleet expenses over time, create initiatives for cost improvement, or plan strategically, we are here to assist you. We have the experience to help you analyse the total cost of fleet enabling better-informed decisions and strategic planning.
Manage your TCO efficiently
The cost of a vehicle is more than just the purchase price. When managing a fleet, it’s important to look at all costs that go into operation a vehicle. This is called the total cost of ownership (TCO). It includes maintenance, fuel, insurance, and depreciation too.
TCO insights
The lowest TCO model is not always the vehicle you think. Common mistakes are decisions based only on catalog price or engine size, in this example an HEV with bigger engine size and 3% higher catalog has a lower TCO lower by 9%:
Vehicle | Rent | TCO | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Modeldescription | KW | Powertrain | Fuel (a) in l/100kms | CO2 emission in g/km | Catalog price | Indicative Monthly rent | Predictive fuel (b) in l/100 kms | Fuel grade | Monthly fuel (liters) | Fuel price THB/litre | Fuel cost/month | TCO with energy cost |
| Toyota Corolla Altis 1.6 G CVT | 92 | ICE | 6.30 | 146 | 916,822.43 | 17,200.00 | 8.19 | E85 | 245.70 | 32.90 | 8,083.53 | 25,283.00 |
| Toyota Corolla Altis 1.8 HEV Premium CVT | 90 | Hybrid | 4.20 | 95 | 942,990.65 | 17,700.00 | 5.46 | E20 | 163.80 | 32.40 | 5,307.12 | 23,007.00 |
With electricity cheaper than petrol and attractive BEV catalog prices one could think BEV have lower TCO. It's not that simple, even if BEV have lower maintenance budget other costs (insurance, tires, charger, rather unpredictible used car value) make them higher TCO, sometimes at parity, with best HEV cars:
Managing direct and indirect costs
Direct costs consist of depreciation, interest, vehicle repair and maintenance, tyres, insurance, fuel consumption, tax, and fleet management fees. Indirect fleet costs, though trickier to quantify, significantly impact your bottom line. These include time spent on fleet management processes and administration, as well as employee productivity factors like driver downtime and motivation.
Optimising expenses
Beyond competitive procurement practices that reduce fleet costs, core changes in your fleet’s structure can yield substantial long-term savings. Utilising our fleet reporting tool and our expertise, we help you spot opportunities for cost improvement.
Understanding the key components of your TCO allows us to implement strategies that control expenses, ensuring a more cost-effective and efficient fleet management.
Benchmarking
Benchmarking is the start in any cost optimisation project. Firstly, it’s important to understand all your current fleet costs across all cost levers like, repairs, depreciation, insurance, tyres, fuel and more. Once you have an overview of all fleet costs then you can compare against peers to see where possible costs savings can come from. Our consultancy services is here to support you with benchmarking and fleet cost optimisation.
Supplier management
Proper supplier management and techniques can be used to reduce fleet costs. We can help with supplier management by reviewing your fleet composition to reduce costs without affecting driver choice or satisfaction. Taking a strictly independent view, we help you define your vehicle requirements; prepare and run tenders with manufacturers; compare tyre, maintenance and other suppliers, and make TCO comparisons for different vehicle types.
Used car leasing
Leasing like you are used to, with more flexibility and lower costs, leaving more cash for your core business. We have a broad variety of used vehicles and they come with the same services you are used to when leasing a new vehicle. These cars are high quality ex-lease cars, with a full maintenance history and low mileage. Discover the benefits that used car lease can have for your business.
Consider electric vehicles
Electric vehicles are becoming more popular and more cost efficient. Research shows that in many European countries the total cost of ownership for an EV is the same cost or cheaper than a vehicle with an internal combustion engine (ICE).
Consultancy Services: Insights and advice to keep your fleet strategy on track
Our consultancy service are experts on fleet policy, cost optimisation, benchmarking and fleet electrification. The consultants can provide advice on:
- Defining your fleet strategy
Whether you want to reduce cost, increase driver safety or satisfaction and/or reduce your company’s CO2 emissions, we will help define your strategy looking at your business and set the right fleet objectives.
- Optimising your fleet cost
thanks to our analysis and fleet insights, we provide you transparency and make sure you can budget properly.
- Optimising your processes
We analyse your daily fleet management processes so that your daily operations run smoothly and more cost-effectively.
- Mobility budget
We advise and support you in implementation of mobility budgets and even advise in salary sacrifice programmes if required.
We're ready to help
International fleet management
Are you responsible for managing an international fleet? Navigating the complexities of global fleet management requires specialised expertise. We offer tailored solutions for international fleet managers like you.
