Reducing the idle time will dramatically cut your fuel bill in the short term and also give you a realistic usage barometer for that machine. Now you will schedule service not off the hour meter on the machine, but the true “working time” meter on the hardware unit – which means you will reduce the number of PMs required annually.
Consider a service interval at 250 hours and a machine with 30% idle time, equating to 75 hours of idling per service. This means that every fourth PM is due to the idling hours alone, which is not a true indicator of usage. As you reduce your idling or simply schedule service off the actual “working” meter, you extend the PM interval and decrease the number required. Taking the example above, if you ran your service strictly off the true “working” meter then you would completely remove every fourth PM - and its associated costs.
Reduced service and repair costs of 15-40%: Using a wireless monitoring system provides a proactive service scheduling function (a report showing what is coming due) as well as a reminder if an asset is not serviced on time, thus preventing any from falling through the cracks. The result is fewer failures and thus less repair costs and equipment downtime.
Insurance savings of 20%-60%. Most wireless asset monitoring systems also double as theft protection systems with such features as nightly curfews, real time theft alerts, immobilization techniques, remote disable, geofences, etc. Ask your insurer what break they will give you for theft protection. If they can’t justify it, then be sure to remind them that there is at least one underwriter out there offering at least 25% discounts on premium and a $10,000 theft deductible to contractors who invest in this technology
More bids, profitably. Armed with the real utilization information from previous jobs, your estimators will now map that to future bids. Rather than estimating, they are using actual numbers from identical work to make their bids more competitive and profitable.
Too good to be true? Consider the case of a customer coming up on their one-year anniversary with our technology, having installed nearly 500 units on their equipment fleet. That investment has yielded a savings in excess of $3 million within 10 months from the exact same items discussed above, exponentially outweighing the cost to deploy. The investment today has paid for itself in the short term, and they are poised to be even more efficient and competitive as the economy turns around.
Tony Nicoletti is the Director of Sales for DPL America, a leading provider of GPS-based asset tracking solutions. You can contact Tony directly via phone 650-965-1636 or email@example.com, and more information is available at www.dplamerica.com.
Customer Profile: Highway, Bridge and Road Contractor
Following is a case study of an actual customer using a DPL America wireless asset monitoring system:
-Fleet size of $100 million
-750 units installed (not entire fleet $100 million)
Fleet productivity increase
Automated reporting to monitor actual use, combat hoarding
- Fleet size reduction by 3%, $1.2 million in capital freed
- Captured $70,000 unreported rental from jobs
Six layers of protection: curfew, remote disable, etc.
- Insurance premium decrease of $300,000 annually
- Prevented loader theft ($130,000), recovered mechanic truck and welder (100,000), and new backhoe ($80,000)
Idle Time Reduction
Reduced average equipment idle time by 1/3 via automated reports
- $1,106/year average savings on wheel loaders and backhoes
- $603/year average savings on grader, dozer and rollers
- Extended average equipment life by 1.2 years
Still to come…