10 Jun, 2020
10 Jun, 2020
Easy system for keeping track of maintenance cost
The Covid-19 pandemic changed the way fleets used to manage and maintain their equipment.
By postponing the replacement of old units with new ones, the need for maintenance related activities increases. This puts pressure on the maintenance budget which was build based on the assumption that new vehicles are coming in.
With increased maintenance spending, cost control is more important than ever. One way to easily check if your maintenance cost is under control is to have a detailed view of it.
Booking all invoices on the vehicle itself does not offer you much information. You see a certain amount, but you don’t know what caused those costs.
Why is the cost split important? Because it offers you:
- a quick way to spot anomalies,
- can compare vehicles between them
- can check workshop performance
- spot double repairs
- can benchmark different vehicle brands
- can decide if an equipment really needs to be repaired or it is better to be sold/scrapped
In order to have a detailed view of the maintenance cost, you can set up a simple system to book theses costs on the cause that generated them. You can use a Cost Codes system.
What is a Cost Code system? Each technical group of the vehicle (like brakes, engine, fuel system, electric system, batteries) receives a code. Whenever you get an invoice from the workshop for a repair, instead of booking the whole amount on the respective equipment, you split the invoice on the technical groups that generated it.
For example: for an equipment, you receive an invoice of 2000$. The workshop made the scheduled oil change, changed the brake disks, changed one injector and the front shock absorbers. If you define Cost Codes for your vehicles, then, instead of having an amount of 2000$ just booked on the respective equipment, you will have the complete cost details. They can look like this:
110 Oil service – 270$
222 Injector – 730$
301 Brake disks – 500$
503 Front shock absorbers – 500$
You can define you own Cost Code system, as detailed as you need it to be. The most important thing is to use it and then to extract the information you need to be sure you are spending your valuable budget exactly where is needed.
We have built the Cost Code mechanism at the core of our software and our customers take benefits from the level of control they achieve and from the savings they make based on the information provided by the system.
If you want to find out more, drop us a line at firstname.lastname@example.org.