“I don’t have a real-time, ‘Mini Profit and Loss Statement’ for every asset in my fleet.”
We hear it all the time, so I figured I’d break it down for you:
What GM’s and executives are really saying, is that when it comes time to buy, sell, repair, or replace an asset – they don’t have a 360-degree view of the darn thing. They have to pull summary data from all over the place, which takes days.
So realistically they just go with their gut instinct to determine:
- Total Outstanding Loans
- Net Book Value
- Total Rental Revenue
- Total Maintenance Expenditure (Breakdown, PM’s, & Refurbs)
- Asset Age & Total Usage
- Percentage ROI vs OEC
- Asset Time & Financial Utilization
- Fair-Market Value / Similar Auction Price
The new way of thinking is to set goals for how you’d like the asset to perform when you initially buy it. Then pull up a stat sheet for the unit to see how it’s performing relative to these goals.
It’s time to “Inspect what you Expect”.
Now it’s easy to answer big questions like:
- When should I buy more of these?
- Should I ever buy these again?
- Should I buy from this manufacturer again?
- When should I retire this?
- Can I afford to raise my rates on this?
- Where should I spend my capex budget?
Today, data makes the difference between winning and losing.