With many fleets requiring body or equipment installation, sensitivity to the timing and process of vehicle delivery is severely heightened. In fleets that strongly value driver productivity or in those for which the vehicle is an integral part of revenue generation, long delivery times equate to lost revenue or increased cost. Conversely, when the delivery process is shortened, companies benefit.
Industry statistics indicate the average work truck produces $1,500 per day in revenue. To complicate matters, many work trucks are delivered to branch locations, where workers or management are expected to disrupt their workday to pick up the vehicle at a new-vehicle dealer, obtain inspections when required, and in some cases, waste valuable time switching equipment from the old vehicle to the new.
Rail car shortages, inefficient processes, overwhelmed dealers, and employees unfamiliar with the process can team up to increase delivery times and cost organizations valuable resources.
Re-Engineering the Delivery Process
Turn-key ready delivery re-engineers the process and produces real savings. Delivering turn-key ready vehicles (inspected, titled, plated, cleaned, and ready-to-use) relieves branch office personnel of confusing and time-consuming duties associated with the title and registration process and allows revenue generation as soon as the vehicle arrives.
In addition, arranging vehicle delivery directly to the end-user avoids trips to the new-vehicle dealer, which industry experts estimate can take 2-3 hours on average. Depending on the new-vehicle dealer used, this step alone can shave up to two weeks off the delivery timeline.
While most fleets would be happy to shave weeks off delivery times, increase productivity, and add revenue to the bottom line, this turn-key delivery process offers an additional benefit — accurate vehicle status from production to delivery.
The traditional delivery process left gaps in status data once the vehicle was re-introduced into the delivery process after upfitting. With turn-key ready deliveries, status is updated constantly through handheld devices (GPS) carried by the service delivery professionals. Status is available online 24 hours a day to fleet managers, leasing companies, and others interested in the delivery.
Turn-Key Ready Deliveries Produce Results
The re-engineered vehicle delivery process allows fleet management companies and self-managed fleets the opportunity to reduce delivery times and increase revenue. Companies that benefit from the new process range from service companies to those operating a fleet of small shuttle buses.
Ranging in savings from $1,500 to many thousand of dollars per unit, these fleets have provided significant value to their organizations and added thousands of dollars to their bottom line. In addition, the fleet department contributes to employee satisfaction by avoiding confusion and wasted time.
One Company's Solution
AmeriFleet Transportation, a provider of total logistics solutions and transportation services, has worked closely with the major fleet management companies and self-managed fleets to develop programs that help truck fleets increase efficiency and produce more revenue with their new vehicles.
These solutions provide turn-key ready delivery services that include:
- Project management support.
- Coordinated vehicle upfit production and delivery schedules.
- Complete delivery status (including GPS in a growing number of applications).
- Scheduling with pickup and delivery locations.
- Pre- and post-inspections when required.
- Vehicles titled, plated, and ready to use upon arrival at the company.
- Reduced delivery times.