Financing the equipment is just one aspect. “There are countless other costs to consider when calculating the Total Cost of Operation (TCO) of equipment,” says Dave Bugas, DLL Account Manager. “Maintenance, downtime, fuel, labor, etc. To manage this, we encouraged Saint-Gobain to work with a brand-independent third party fleet management provider to create a framework that could support a variety of equipment types and brands.”
Saint-Gobain partnered with BEB Industrial Asset Management, Inc., an independent fleet management service specialized in forklifts and other materials handling equipment. BEB introduced extensive technology tools and a central database tracking system, giving Saint-Gobain an overview of their entire fleet and helping them centrally track equipment usage and costs.
The results were surprising. Whereas Saint-Gobain estimated their asset base at roughly $6 million (€ 5.38 million) in the U.S. and Canada, the fleet management tools indicated they were closer to $30 million (€ 26.9 million). Similarly, their annual spend was double what they had thought. Another eye-opener was that they owned over half their equipment.
Bugas says this is precisely why professional fleet management tools are so important to global organizations like Saint-Gobain. “The system allows companies to make smarter decisions about if and when to replace old equipment and how to structure new leases to avoid over- or under-utilization.”