Fleet management: a neglected cost cutting tool for companies
By Staff -- Modern Materials Handling, 1/1/1999
Much of U.S. industry is missing a safe "bet." There's an opportunity "to slash $1 billion in waste among American companies," says an executive with Caterpillar Lift Trucks and Mitsubishi Lift Trucks. Companies are poorly managing their lift truck fleets, according to Mike MacPhail, manager of fleet management services for the two forklift manufacturers.At a recent business press event focused on new product launches for Mitsubishi and Caterpillar (see Product Focus, pages 65 and 205 for details on several new trucks) MacPhail spoke on fleet management issues.
"Waste" in forklift fleets stems from various factors, he says. They include: Running older trucks longer than a firm should; performing maintenance on the trucks poorly; and having untrained mechanics do the work.
"It's safe to say," MacPhail declares, "that only 5% of American companies have any kind of fleet management." The savings that can be achieved by eliminating wasted dollars on lift truck fleets could be dropped to companies' bottom lines to improve these all important numbers, he suggests.
"We see the lift truck asset as the next logical step by companies to greater profitability," he suggests. That trend follows outsourcing moves by firms that now have others take care of their computers, copiers, or other equipment assets.
Minimizing ownership and operating costs are among the drivers behind the trend to fleet management services. "This is not a marketing ploy to sell more trucks," MacPhail maintains.
Indeed, the key is not to add trucks, but to know when to reduce fleet size to improve asset utilization, he says. Or to know when to move a truck to another application. Or when to retire it, he adds.
There's wide variation in types of fleet management: Owning a fleet but using preventative maintenance or full maintenance contracts; renting or leasing trucks; paying for usage and returning the trucks when the job is done.
"Ultimately, fleet management may lead to billing forklift users by the hour for usage or by the loads moved, for example. And that time may not be too far down the road," MacPhail believes.
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