The following scene may be painfully familiar: You’re finalizing next year’s budget and flinch each time you see the line item for fleet maintenance. What’s driving these costs, you wonder. Are there any trends you can identify? Is the age of your vehicles a factor? To get answers, you challenge your team to find ways to predict and prevent these costs from affecting your budget down the road.
The good news is that the answers you need are out there. All you need is the right tools. In this case, the right tool is predictive analytics technology.
Predictive analytics allows you to see the big picture. For example, by combining maintenance data with vehicle histories, predictive analytics can help you establish a pattern of failure and repair expenses. You can also identify the vehicles that haven’t required significant repairs, resulting in a more complete picture of your costs and what you can do to address them.
Analytics helps you look at your fleet from the inside out and from today into tomorrow. This comprehensive, predictive approach lets you develop accurate budget plans that align with your company’s financial objectives. Armed with this data, you can build a vehicle replacement strategy based on best practices, ultimately cycling out costly vehicles and reducing the average fleet age – all without breaking the bank.
As your fleet age decreases, so will downtime and the costs associated with it.
Predictive analysis of Big Data doesn’t just give you answers, it gives them to you faster so you can make quicker and more confident decisions.
With predictive analytics, you can determine your fleet’s optimal vehicle age by type and usage. Depending on how quickly you want the fleet to reach this optimal age, or how much your company wants to budget annually for replacement vehicles, you can work toward the ultimate goal of a flat pattern for fleet expenses. Your capital expenses may rise at first as you acquire new vehicles, but maintenance expenses will begin to decrease. As fleet age decreases, so will downtime as vehicle reliability increases. Moving forward, you’ll spend less time setting internal expectations for budget spikes, and instead focus on your fleet as a revenue supporting asset for your organization.
Predictive analytics can give you a completely new perspective for managing your fleet. The team at ARI can provide insight and tools, and show you ways to set your strategy to control operating costs and support your organizational objectives.
Mike Bryan heads ARI’s Business Intelligence and Analytics department. He and his team of consultants provide evidence-based findings to help customers weigh their business strategies for achieving optimal fleet management results.