There are a number of aspects that need to be considered when trying to make the most appropriate choice of vehicle for a vehicle fleet.
Vehicle Selection
Vehicle selection decisions should not be made in isolation. The main areas that need to be carefully assessed are efficiency, economy and legality.
Efficiency, in this context, means the most effective way to do the job, based on a number of important factors. The truck should be fit for purpose. These factors might include:
- the nature of the operation, ie annual mileage, the terrain, climate, etc
- the characteristics of the load, ie physical features, weight, etc
- the specification of the vehicle, ie engine, gearbox, axle configuration, body, etc.
Economy is concerned with the purchase price and operating costs of different choices of vehicle. The considerations include
- the fixed cost of a vehicle, ie depreciation, licences, insurance, etc
- the variable cost of a vehicle, ie fuel, tyres, maintenance, etc
- the residual value of a vehicle (some types of uncommon vehicle do not have good resale values)
- the whole life costs of the vehicle, ie a calculation of the above cost over a given life of the vehicle;
- utilization factors, ie fuel efficiency, other costs per mile/kilometer, etc
- vehicle acquisition, ie outright purchase, contract hire, lease, etc.
Legality ensures that vehicles are selected and operated within the existing transport laws.
Vehicle Acquisition
Having determined the vehicle requirements, the next task is to ascertain the most appropriate means of acquiring the vehicle. There are several options available – outright purchase, rental, lease or contract hire. Vehicles may also be acquired by outsourcing the whole operation to a third party contractor. Indeed it is oft en when large numbers of vehicles need to be acquired and large amounts of capital have to be approved that outsourcing is considered.
The traditional means of vehicle acquisition is that of outright purchase. The leasing of vehicles is a popular alternative. The contract hire of vehicles has become a much more attractive option. Contract hire arrangements can vary from the supply of the vehicle alone, through maintenance, insurance and drivers to the provision of a complete distribution service. Vehicles can also be acquired via rental agreements with agreements may include maintenance and driver