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TM Fleet Services - Actual Whole Life Costs



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By : Darlena Francis   
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Submitted 2012-01-05 13:51:20
Total Motion Fleet Services Operational Stategy
The basis for the provision of effective Vehicle management is knowing the requirements of a business at every level, and ensuring that suggestions and solutions are developed to deliver an unbelievable benefit.

Striving for optimum Fleet Services and car fleet management TM will construct and then look after an individually structured and branded fleet services and driver support mechanism.

TM will

· Understand the company, its internal structure, reporting heirarchy and needs for service and support
· Propose, agree and follow a clearly worded and researched SLA
· Set authority rules and boundaries
· Provide reporting formats and frequencies
· Set an escalation process
· Become the first point of contact for all staff members and drivers
· Organise all fleet related matters and suppliers (Including any existing arrangements)
· Set up a vehicle replacement process
· Provide a personalised driver support web site
· Arrange roll out meetings for Directors and Management
· Liaise on a frequent basis with drivers (every 15 weeks)
· Deal with all internal and external fleet & service provider relationships

This will

· Ensure the delivery of the support & services we offer
· Assist the management people
· Support the staff keeping them focused on core business
· Deliver accurate and purposeful management info
· Establish clarity and understanding at every level
· Allow 100% focus of resource on core tasks at every level of the company
· Put forward vehicle enhancement synergies
· Reduce the overall cost of the vehicles
· Promote the complete Fleet Maintenance & Accident Management package
· Provide an effective, plain and proactive fleet management structure that handles every eventuality

You and your staff will be supported by a committed management team that works for them, day by day to create efficiencies, control usage and to offer the required support when it is needed.

· One Email
· One Phone Number
· One Website
TMVM becomes your own outsourced fleet management team that you control.

Actual Whole Life Cost
This system was first tried out in 1997, since then Actual Whole Life Cost has been proven to be the most precise and transparent whole life cost mechanism available, helping our clients structure their company

· Which manufacturers and models should be selected
· Which funding product should be used
· The true cost of fleet
· The period of time and mileage is appropriate for life cycles and contracts
· How grade boundaries are set & which vehicles fit into which grade
· Generating and enhancing cash allowances and flexible benefits.

The AWLC calculation is made up of

· Depreciation
· Company tax, Capital allowances & National Insurance
· Service, maintenance and repair spend (SMR)
· Non scheduled repair spend (e.g. breakdown)
· Finance expenditure
· Insurance
· Petrol
· Breakdown services
· Average unrecoverable expenditure per vehicle
· Non scheduled spend
· Admin spend
· Vehicle usage

TM uses constantly updated data and not calculations based upon leasing rentals which other systems do, with info coming from

· Fuel providers
· Contract hire providers
· Insurers & Brokers
· Vehicle production companies
· Rospa
· Department of Transport
· ICME repair times
· Historic maintenance cost from TM's database of motor cars and that of over 100 large vehicle operators
· Over 825,000 running motor cars

A consequence of this structure is that an AWLC has a max variance of 3% versus actual cost. TMVM are the only fleet management supplier that offers this format and degree of precision.

Also, in 2006 we created the Vehicle & Driver monitoring module within the Actual Whole Life Cost system, this allows us to study in real time, spend and trends and to create future processes accordingly

Vehicle and Driver Monitoring analyses

· SMR costs
· Fuel spend
· Breakdowns
· Accidents, with Accident Management
· Pence per mile spend
· Wear and tear

It then compares

· Vehicle against vehicle,
· Driver against driver

Within

· Your own fleet
· That of our other customers
· Over 825 other fleet users

This enables us to accurately study and then identify potential issues and to act accordingly all leading to the ultimate vehicle management tool.
Author Resource:-
http://www.totalmotion.co.uk/solutions/fleet_whole_life_costs.htm
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