GLEN ALLEN, VA--(Marketwired - Jul 17, 2013) - Decisiv, Inc., the leading provider of service relationship management platforms, today announced the availability of a white paper that presents an in-depth look at Days Out of Service (DOS) as a fundamental financial driver to the bottom line profitability of fleets and service providers. Like high blood pressure, DOS is an invisible and silent disease, which untreated can have real and expensive consequences.
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"The traditional costs of commercial vehicle maintenance are measured in hard dollars," said Dick Hyatt, president of Decisiv, "but while the trucking industry focuses on cost pressures and other challenges, many completely out of their control, fleets still ignore the fundamental business impacts associated with Days Out of Service for service and repair events. This fundamental flaw misses the impact that DOS has on revenue, customer and driver retention, and net profit."
The Decisiv white paper on DOS examines the importance of measuring asset utilization as a critical benchmark for analyzing the impact maintenance and repair operations have on fleet profitability. Among the conclusions in the paper are the following:
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Increasing DOS impacts asset utilization, reducing revenue and net profitability
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Increasing DOS drives inefficient capital deployment and raises operating costs for carrying inventory of owned, leased or rented vehicles to substitute for units that are out of service
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Reducing DOS, even by a small percentage, has direct bottom line financial benefits
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Reducing DOS is best accomplished by improving collaboration and communication across the service supply chain
The impact of DOS on profitability is seen in the results of a recent survey of fleet operators attending the Decisiv Maintenance Summit. On average, in one month these fleets operated 277 tractors for 9,538 revenue miles per truck, producing $20,695 in revenue (or $2.17 per mile). The fleets also reported an average of 1.51 service events that resulted in 3.19 days out-of-service per tractor.
With only a 25% reduction in DOS, the results show that the average fleet should realize an additional $1,123 in revenue per tractor. This represents an improvement in asset utilization from 85.5% to 89.1% as a result of reducing DOS from 3.19 days per event to 2.39 days. By reducing DOS by only 25%, the average fleet responding to the survey could produce an additional $1.35 million in revenue and $500,000 in profit. See the calculator...