When is it more cost-effective to buy or lease a vehicle? At what age is it worthwhile to renew your fleet? These are some of the questions that Golfleet's TCO module answers.
Total Cost of Ownership (TCO) represents the real cost of each of your fleet's assets, providing an accurate view of your expenses. This, in turn, allows you to detail purchases, forecast costs, and make informed decisions to improve operations and increase profitability.
Automating this calculation with a fleet management system is a great way to analyze in detail the costs of purchasing or renting vehicles, identifying the ideal time to renew or demobilize the fleet and even exchange specific models.
To find out how Golfleet delivers all the information necessary to ensure the success and profitability of your business, read on.
Importance of TCO in fleet management
Fleet management is surrounded by a series of questions, which are usually accompanied by concerns related to economics. The answer to these questions has three letters: TCO, from the English Total Cost of Ownership.
You've probably wondered about the market value of each vehicle in your operation, how much you spend annually on documentation and taxes, or how much you spend monthly on fuel, fines, and fleet maintenance.
On the other hand, monitoring all these issues is not as simple as it seems. After all, amidst so many responsibilities, it is very likely that the TCO calculation will end up being left aside.
In practice, the result is that you don't know the total cost of a vehicle for your operation, so it may be draining your cash flow without you even realizing it.
An accurate TCO calculation can be critical in deciding when to replace fleet vehicles or consider other strategies, such as transitioning to leased vehicles.
But it's important to measure TCO carefully, as a misleading result can provide false information about the cost of your assets and lead to harmful financial decisions.
This is where Golfleet's TCO module comes in, giving managers back control over their finances and, most importantly, in a secure way, without the need to worry about manual tasks such as gathering data and calculating the TCO vehicle by vehicle.
Suggested reading: TCO: How to understand and control costs in fleet management
Benefits of the TCO module for fleet management
Managing fleet costs requires in-depth knowledge of the operation's cash flow, day after day, with TCO being a valuable guide to show where your resources are being spent or determine the right time to retire a vehicle.
The key to making this calculation accurately lies in recording and categorizing all the major expenses associated with a vehicle, from maintenance and taxes to licensing fees.
In other words, before you can actually see exact TCO numbers, you'll need to compile a history of expenses and add them to the purchase price to understand how much a vehicle actually costs to operate.
Therefore, it is complex work, which often involves the use of spreadsheets. But this practice is not highly recommended, due to the cost items involved and volumes of transactions that need to be carried out.
Managers who have Golfleet in their fleets have a powerful tool to calculate these metrics and even collect some of this information automatically.
Suggested reading: TCO and ROI: two indicators that make a difference in fleet management.
The TCO module offers insights that you cannot find anywhere else, precisely because it efficiently integrates the sum total of all management data in one place.
See below how this add-on available for our telemetry and video telemetry systems provides a comprehensive and detailed view of the fleet's financial health.
Total indicators
With the TCO module dashboard, we inaugurated a new generation of BI in Golfleet, providing a wide range of indicators, operators and navigation and ordering options.
You can combine these elements in various ways to find precisely the data you're looking for regarding fuel, maintenance, accidents , depreciation, or any cost related to fleet management.
It is also possible to integrate and view data on the platform regarding rentals, decommissioning , documentation, management tools such as Golfleet's own systems, and fines.
Suggested reading: Paradigm shift in fleet management: what is TCM and what is it for?
Above average rankings
In addition to conventional rankings, the dashboard allows you to rank the averages, minimums, and maximums of any indicator, from bottom to top, top to bottom, or simply above the average and between the minimum and maximum values.
The system also provides a top 10 with the vehicles that represent the highest costs per kilometer driven, or even the lowest costs, those most suitable for your operation.
All of this is done according to a vehicle or a group of vehicles, which allows for a more detailed analysis of different operations, such as commercial operations, customer service, and service provision, for example.
Report navigation
All reports in the TCO module are connected, allowing fluid navigation between different periods and categories, grouping or ungrouping of information and a detailed analysis of each item that makes up the cost and obtaining a comprehensive view of the operation.
simple usability
The Golfleet dashboard is revolutionary in every aspect, regardless of the module, and TCO would be no different. It offers an extensive list of indicators and new classification and navigation tools, in addition to completely simple and complete filters.
Another differentiator of Golfleet is its possibility of integration with several players in the fleet market, including toll platforms. In this way, it allows automatic accounting and, consequently, a more detailed analysis of these operational costs.
Suggested reading: How does fleet management benefit from an integrated system?
For these and other reasons, the TCO module will be a true right-hand man for your company's financial sector, providing essential answers to questions such as:
- Ideal time to purchase a new vehicle
- Advantage between buying or renting
- Most suitable period to renew the fleet
- Market value of each vehicle
- Annual expenses with documentation and taxes
- Monthly fuel expenses
If you value this information to maintain efficient control over your operational costs, Golfleet is the ideal solution to meet these demands. We invite you to schedule a free demonstration of our tool and explore its full potential.
