A robust asset management system is crucial for any business looking to run a cost-effective operation from top to bottom. One trucking company recently learned just how much a disciplined approach to fleet management could save them: just a few million dollars a year.

1. Disciplined Fleet
Management: Cutting
Costs by the Millions
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2. A robust asset management system is crucial for any business looking to run a cost-
effective operation from top to bottom. One trucking company recently learned just
how much a disciplined approach to fleet management could save them: just a few
million dollars a year.
Comprehensively Cost-Effective
Air Products and Chemicals, a Florida, USA-based trucking company, reports how asset
management, involving not only internal data but market research as well, has saved
them two million dollars in operating expenses since their adoption of the system three
years ago.
The company’s strategic sourcing manager Tim Tulio said that the company runs about
55 million miles (88.5 million km) a year, consuming nearly 10.5 million gallons (39.7
million litres) of diesel fuel. The company provides atmospheric/process gases and
related equipment to manufacturing markets, operating a fleet of 2,600 tractors, 85
micro-bulk tanker units, and 400 light-duty pickup trucks. As with all other fleets, Tulio
notes that Air Products and Chemicals encounters the highest expenditures with fuel,
tires and unplanned maintenance.

3. Informing Decisions
By breaking down maintenance and
accident repairs, normal scheduled
maintenance, tires, and other
maintenance curves, the company is able
to access valuable information to guide
them in making leasing and vehicle
replacement decisions for their fleet.
'The data’s available and if you have a
good format, it gives you what you need to
make a good decision later on down the
road; let the data drive the decision to
replace a truck', says Peter Flynn, the
company’s asset portfolio manager.
Flynn explained how asset management
saves the company around $11-13,000 for
every vehicle replacement. He says that
the regular and informed asset modelling
the company administers is a primary
factor; something Air Products and
Chemicals performs on every truck running
80,000 to 100,000 miles (128-161 km) a
year.

4. The company cannot be any happier. Madhu Stemmermann, Air Products and Chemical’s
line manager for customer engineering and fleet operations, says their relationship with
asset management will be a ‘long-term’ one. 'Once we started seeing the savings that
started helping, small wins started growing… and we expect year over year that we’re
going to see savings', she says.
RESOURCES:
http://fleetowner.com/fleet-management/how-one-fleet-saved-millions-managing-its-
assets
http://mainpac.com.au/PAS-55-Asset-Management