Why are service costs going up when more data means better decisions?

Why are service costs going up when more data means better decisions?

The five most frequent repairs in Q1 2018 included tires, lighting, brakes, exhaust systems and wheels/rims/hubs and bearing systems.

Unscheduled roadside repairs. 

Three words you hear too often, at least according to the results of ATA’s Technology and Maintenance Council (TMC) and FleetNet America benchmarking study that took a deep dive into the frequency of roadside failures among truckload fleets. The executive summary from the 2018 Q4 report stated that, on average, a roadside maintenance event occurred every 10,663 miles between Oct. to Dec. 2018. Additionally, the report found that the average cost per mechanical repair in that same time period was $334.20 per repair—the highest it had ever been since the quarterly benchmarking project started a year ago.

As a fleet service manager, those numbers might make your stomach churn, but if you’re being honest with yourself, it’s because you’ve likely faced those costs. The five most frequent repairs in Q1 2018 included tires, lighting, brakes, exhaust systems and wheels/rims/hubs and bearing systems. These five repairs accounted for 37% of all roadside repairs in Q4 2017 and increased to 58% of all unscheduled repairs.

“We’re measuring miles between breakdowns and miles between repairs,” explained Jim Buell, executive vice president of sales and marketing for FleetNet America. “A breakdown is when the asset is on the side of the road, but there could be more than one repair to get that asset back on the road. When you look at miles between repairs, it helps you make better decisions. And with breakdowns, it costs more to fix something on the side of the road. I believe understanding your roadside failures gives you great insight into your maintenance operation.”

The best-in-class fleet in the truckload vertical ran seven times longer between roadside failures than the vertical average with a total of 75,528 miles between unscheduled roadside repairs. How does your service operation stack up?  

Buell explained that the TMC/FleetNet America benchmarking program aims to help TMC members drive down maintenance costs. Avoiding roadside repairs is a major component of that, as on average it costs four times more to repair a truck on the side of the road vs. fixing it in your shop. 

Buell detailed the VMRS-based benchmarking, which compares the industry average maintenance practices and costs to your specific fleet’s performance. 

“It will tell you how many repairs you had by VMRS system,” he said. “It’ll tell you how many miles you ran between repairs and compare that to the vertical average. Then to make it really easy, it will also tell you how much more it’s costing you to perform below the industry average or how much you’re saving by performing above the average.”

He pointed to a screen displaying rows and columns of service data that is available to TMC members and powered by FleetNet America’s back end solutions. The line he called out is a fleet’s maintenance cost related to wheels, rims and bearings.

“In this particular case,” he began excitedly, “this fleet is ahead $42,000 on wheel, rim and bearing maintenance costs. With that, if I’m that fleet, I might go upstairs to senior management and say, ‘Hey, we’re better than the industry average, and I saved the company $42,000.’” 

Wouldn’t we all love to have an awesome line-item savings to point to?

If you’re interested in joining the program and gaining access to the benchmarking data to see how your service operation, visit benchmarkit.fleetnetamerica.com for more details.

You May Also Like

Noregon adds Fault Guidance, bi-directional testing to JPRO

The new JPRO update also includes an optional Technician as a Service (TaaS) add-on.

Noregon-JPRO-update

Noregon released an update for its JPRO commercial diagnostic and troubleshooting application, which includes new bi-directional tests, Fault Guidance and an optional Technician as a Service (TaaS) add-on that gives customers remote support from master technicians.

According to Noregon, Fault Guidance is an embedded troubleshooting feature that features troubleshooting steps, wiring diagrams, and more. The new list of bi-directional tests cover both on- and off-highway assets. These bi-directional commands include cylinder cutouts, forced DPF regens, aftertreatment injector tests and more, according to the company. Off-highway additions include manufacturers such as Kubota and Komatsu, while Noregon says more on-highway tests were added for PACCAR, Detroit and others.

Powerfleet, MiX Telematics approved for business combination

The combination is expected to be complete in the first week of April, after which the businesses will be branded as Powerfleet.

Powerfleet-x-MiX-telematics-integration
Scania speeds up autonomous transport pilot program

Equipped with Plus, Scania has been testing its trucks in Sweden since 2021 — now it plans to expand operations throughout Europe, this year.

SCANIA-Logo-vector
IRS clarifies: RNG cleaning and conditioning equipment eligible for tax credit

RNG Coalition notes a correction to an investment tax credit proposal regarding RNG cleaning and conditioning equipment.

RNG-Coalition-logo-ITC-technical-correction
Stellantis and UFOFleet form partnership

Stellantis says it chose UFOFleet for its proven customer experience, flexible technology and deployments with leading global brands.

UFO-Fleet-Stellantis

Other Posts

How fleet management tools can help increase fuel efficiency

From fleet cards to EVs and data, all work together to help save on costs.

generic-fuel-efficiency-fleet
The power of truck data visibility

For fleet managers, data is power, and there have never been as many tools for them to take advantage of as there are now. Related Articles – Noregon and Phillips Connect on their partnership, trailer health and data – Truck maintenance recommendations for the spring season – Everyone’s talking about AI, but will it make

datavisability-1400
Full Truck Alliance releases 2023 fiscal report

FTA says y/y net revenues and fulfilled orders were up considerably, while its net income more than quadrupled from 2022.

transprotation-market-generic
SKF helps Maverick Transportation keep wheels attached

Having a wheel fly off while driving can be catastrophic, and SKF says TraX and Road Ready help catch issues early.

SKF-Road-Ready-TraX-wheel-telematics-Maverick-Transportation