Published November 11, 2022

CONTROL THE TOTAL COST OF OWNERSHIP (ERP) OF ENTERPRISE FLEET MANAGEMENT

Fleet management

1 min read

CONTRÔLER LE COÛT TOTAL DE POSSESSION (ERP) DE LA GESTION DE LA FLOTTE D'ENTREPRISE

The most difficult and complex aspect of enterprise fleet cost management is calculating the total cost of ownership of your fleet. Understanding total cost of ownership allows you to make evidence-based decisions to better manage your fleet.

Reduce business fleet management costs

The total cost of ownership (ERP) of your company's fleet includes fixed and variable costs. Fixed costs are costs that remain the same regardless of how the car is used. For example :

Financing payments, leasing payments or rental payments in the case of long-term rental;
Stamp duty/property tax;
Insurance;
Routine maintenance (overhaul and servicing);
The salary of the staff who manage the company's fleet.
Variable costs are those that vary depending on the size of the company's fleet and the use made of it. Examples of variable costs:

Fuel;
Extraordinary maintenance (replacement of mechanical parts, vehicle breakdowns or accidental damage);
Road taxes and tolls.
ERP analysis allows you to track all expenses related to managing your fleet and develop an effective fleet management strategy to optimize costs in the short and long term.