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Making the case: The ROI of fleet management optimization

Posted by Phil Van Wormer on Aug 12, 2014 6:00:00 AM

roimaximage1To make the business case for the investment in fleet management optimization tools, outline their potential impact on your organization.

Management wants solid facts to back up the answer to the inevitable question: How do we maximize the ROI of our technology investment?

Consider the impact of the latest fleet monitoring innovations on the following four areas:


The dire accident statistics and astronomical costs of forklift impacts call for real time monitoring and control. By giving managers real time access to the exact movements of each vehicle, you give them the opportunity to take timely corrective action as soon as an impact has occurred. The ROI benefits of improved safety can be counted in reduced lost work time, reduced maintenance costs and increased OSHA compliance, which in turn leads to lower administrative costs. 

Case study: A specialty chemical company faced escalating repair costs as a result of forklift impacts. In order to monitor impact detection and access control, the company installed EquipManager and EquipCommand monitoring system. Six months later, the number of impacts had been reduced by 73 percent while maintenance costs had decreased by $32K.

Fleet management

Knowing what each vehicle is doing at all times is the pillar of building an efficient fleet. But a look at statistics shows vehicles spend a surprising amount of time idle. With an equipment monitoring device, you eliminate such visibility gaps and can use your newfound insights to right-size your fleet. Considering a lift truck is associated with 40 separate costs, the savings quickly add up.

Case study: A customer deployed a GPS fleet management system to all of its 8,000 delivery vehicles. Based on the collected data, the company was able to reduce the number of vehicles by 1,000, resulting in productivity gains of 12 percent.

Labor management

A typical TotalTrax customer realizes ROI in two years or less, solely based on labor savings incurred from using real time monitoring solutions. The cost of labor accounts for as much as 75 percent of forklift truck ownership. As a result, even small productivity gains in labor beat large improvements in other cost areas. Again, the key is operational insight into the performance of individual drivers. Notable ROI benefits include improved accountability, elimination of manual data collection, and increased average shift performance.

Case study: A cold storage provider leveraged real time monitoring and data collection to increase the average number of pallets moved from 15 to 20. The 30 percent productivity improvement consequently allowed the company to cut three trucks from its fleet of 22.

Inventory tracking

Tracking the movement of each pallet by the second to the inch provides a path to 100 percent inventory accuracy. The seamless communication between the vehicle-mounted terminals and a graphic user interface gives the drivers access to a range of data that can be used to rezone or reslot the warehouse and reduce shipment errors, obsolete inventory, buffer stock, and outbound quality assurance inspection costs.

Case study: A large dairy producer applied a forklift tracking system to improve the performance of its warehouse pickers and accuracy of the pick face replenishment. The newfound knowledge helped the company revamp several warehouse processes, leading to the elimination of hand scans and manual replenishment of empty pick faces. Six months after the launch, pickers always find the correct stock in each picking bay.

Fleet management solutions have a real impact on a range of aspects in your organization. By detailing the benefits proposition, you lay the groundwork for a successful investment. 

Topics: Forklift safety, OSHA, Equipmanager, Equipcommand, Maximizing ROI, real-time visibility, warehouse productivity, fleet management