Fleet Management is a science where Key has experience in a disciplined approach to extracting maximum value from fleet assets. Here is a 10-point plan that highlights the first 3 items and issues behind these vital factors.
1. Vehicle Selection – Vehicle selection removes the risk of placing the wrong vehicle into a specific task.
2. Procurement – Vehicle procurement links into timing and efficiency – particularly for trucks that require specialized cargo bodies.
- Timing of purchase (impacts depreciation, resale price)
- Dealer selection
- Approved bodybuilders & accessories dealers
- Dealer service & delivery time
- Pricing & discounts
3. Funding – is the cash flow impact – how will this fleet asset be funded in relation to the other financial needs of the business?
- Financiers selection (e.g. Banks)
- Funding Rates
- Cash Purchase
- Hire Purchase
- Financing leasing option (use vs. ownership)
- Residual value / Balloon payments
We will explain more of the 10 strategic touchpoints in the following newsletters. For more information, please contact Hennie Botha at 031 713 3145 or at 074 331 1354.
