Informed Capex and Disposal Decisions

Increasing the vision and control of both capex and disposal decisions creates a more efficient fleet with better utilised assets.

Distressed purchases often incur a higher cost and slow disposal decisions leech cashflow. Stock and utilisation indicators inform these decisions, making them more conscious and strategic. Indicators range from the hidden box of 20 emergency tea bags to a utilisation dashboard for the whole fleet.

Utilisation is the central metric of this process. At its most simple, it is a ratio between time assets are available for hire and time actually on hire. Therefore, assets with different minimum hire periods, availability, shift patterns, etc. can be measured on the same scale and, potentially, against the same target.

There are many factors which affect capex and disposal. Here are 3 of the others to be aware of are:

  • Lead-times
    • Short lead-times are a blessing and enable much more nimble strategy. Regular contact with the OEM is required if stocks are low or utilisation is high
  • Transport cost
    • If something has a very short lead-time and is expensive to transport, only purchase it when the specific hiring depot or customer site is known
  • Low Utilisation Core Fleet

One definition of core fleet is the assets which the customer values most. These may be low utilisation, so be wary of not being able to service their fluctuating requirements by disposing of too many