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  • Bryan Cheney

Fleet Overhaul - $300K annualized savings

I worked with a local manufacturing and installation company to delivery more than $300,000 in first year annualized savings when we replaced their fleet. Read more below on how.


Company Overview

The company had 34 vehicles across multiple locations. They had 3 different vehicle types to service the customer and meeting the needs of their business. Those vehicles include medium duty box trucks, mid-sized SUVs, and small box trucks which were used as service vehicles.


Starting Point

Heavy Duty Box Trucks. These diesel trucks had a base lease cost of $1,220 plus maintenance and mileage fees which was more than $1,400/month.


Mid-sized SUV. These vehicles had a base cost of $487 plus maintenance and other charges adding up to just over $600/month.


Small Box Truck/Service Vehicle. These vehicles had base price of $341 plus maintenance and other charges adding up to more than $450/month.

The total monthly bill for vehicles was more than $43,000.


Initial Review

I spent time working with the leadership team to get an understanding on what their targeted goals were as well as understanding the different vehicle needs. The primary concerns were payload capacity and ability to operate in an urban environment. This company worked in the downtown Portland, Oregon and Seattle, Washington markets. The large box trucks sometime made parking in those downtown and urban environments more challenging than originally expected.


The other concerns discussed were safety. The installation teams carried heavy pieces of stone and their existing trucks only had a narrow ramp to offload material that was very steep. There was concern that if one of the team members were to accidentally step off the ramp there might be disastrous consequences.


Proposal

I sourced the local and national market for possible solutions for both vehicles as well as offloading resources. Ultimately I was able to connect with a local Portland dealer who had additional partner dealerships throughout the Pacific Northwest who would be able to provide all of the vehicles for the company.


Outcome

1. We replaced the Heavy-Duty Box Trucks with more fuel efficient diesel vehicles that had the same or greater payload capacity of 6,300 lbs.

2. The mid-sized SUV’s were replaced with light duty trucks and fuel-efficient vehicles that carried a lower monthly lease cost and double the fuel economy

3. The small box trucks were replaced with vehicles that had a greater service capacity, and better fuel economy and no additional monthly cost.


Savings

1. The fuel economy savings for just the box trucks was estimated at more than $66,500/year

2. Total monthly lease savings were more than $16,000.

3. Lowered Insurance premiums as the box trucks were a higher GVW (Gross Vehicle Weight) and putting them in a more expensive insurance class

4. Further streamlining and standardization of vehicles

5. Increased safety features like blind spot monitoring, lane departure, and offloading capability.


Total Annualized savings $300,000+

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Contact Us

 Beaverton, OR 97005

Tel. 503-522-2063

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