{"id":6159,"date":"2020-06-18T14:22:35","date_gmt":"2020-06-18T12:22:35","guid":{"rendered":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/?p=6159"},"modified":"2020-06-18T14:22:35","modified_gmt":"2020-06-18T12:22:35","slug":"lifecycles-for-medium-duty-trucks","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2020\/06\/18\/lifecycles-for-medium-duty-trucks\/","title":{"rendered":"Managing Lifecycles for Medium-Duty Trucks"},"content":{"rendered":"

Planning is always important, but when it comes to medium-duty, it\u2019s critical for success. Photo: Getty Images<\/span><\/p>\n

Medium-duty trucks, often considered Class 3 through Class 6 (sometimes encompassing up to Class 7 units), are the backbone of the work truck fleet.\u00a0<\/span><\/p>\n

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These trucks are used for hauling heavy loads, working in more extreme conditions, and often require specialized equipment needs. Managing the lifecycle of these medium-duty trucks requires a slightly different approach than their light-duty counterparts.\u00a0<\/span><\/p>\n

Lifecycle Management\u00a0Challenges for Medium-Duty<\/span><\/h2>\n

Managing medium-duty trucks can present unique obstacles.\u00a0<\/span><\/p>\n

\u201cSome added obstacles may include vehicle acquisition costs, remarketing challenges, and data availability,\u201d said Alexander Walker, sr. data strategist for Donlen. \u201cThe simple fact that medium-duty trucks are more expensive to acquire than light-duty trucks may result in financial planning and cash flow challenges. It can be more difficult to raise and budget for needed capital. Additionally, companies that lease these assets may use lease products similar to a fixed-term lease (FTL), which may lock that truck into a fixed asset life, dictating when replacement will occur.\u201d<\/span><\/p>\n

Additional challenges include higher overall costs.\u00a0<\/span><\/p>\n

\u201cMedium-duty has higher upfront costs resulting from higher chassis and upfitting expenses, as well as higher maintenance and downtime expense,\u201d said Collin Reid, truck strategic consultant for Element Fleet. \u201cThe balancing act between fixed and variable costs is still similar for medium-duty and light-duty trucks, but for medium-duty, both fixed and variable costs are much higher and impact the business even more.\u201d<\/span><\/p>\n

The same overarching principles still apply when looking at medium-duty units compared to light-duty counterparts, but you need to account for the equipment and upfits.\u00a0<\/span><\/p>\n

\u201cIn many cases, the potentially significant cost of the upfitting\/equipment will influence the lifecycle with units likely remaining in service longer due to the larger capital investment. With the extended lifecycle in mind, you\u2019ll need to plan accordingly and strictly adhere to proper preventive maintenance schedules to extend the unit\u2019s useful lifecycle,\u201d said Ed Powell, manager of business intelligence & analytics for ARI.<\/span><\/p>\n

When conducting a lifecycle analysis for medium-duty trucks, one needs to consider the cost of upfitting.\u00a0<\/span><\/p>\n

\u201cOften, with expensive upfitting, a fleet is forced to run their vehicles longer and outside optimal cycling terms to ensure they account for the upfront costs associated with upfitting. Running vehicles past the optimal cycle period can lead to more non-preventive maintenance (PM) cost and vehicle downtime expense,\u201d said Eric Miller, CAFM, senior fleet consultant for Merchants Fleet.<\/span><\/p>\n

TCO must also be reviewed regularly to evaluate the optimal replacement timing.<\/span><\/p>\n

\u201cThis not only applies to new vehicles going out, but to vehicles already in operation.\u00a0It\u2019s important to determine if it\u2019s time to pull a vehicle out of service ahead of schedule to take advantage of market conditions or technological and safety enhancements. Consulting with drivers is also essential to ensure vehicles are spec\u2019ed appropriately for their current and forecasted usage,\u201d said Jeff Krogen, assistant vice president of fleet strategy for Enterprise Fleet Management.<\/span><\/p>\n

Lead times can be a challenge with both light-duty and medium-duty trucks but add in the aftermarket, and things become much more complicated, Krogen added.<\/span><\/p>\n

End-of-life also presents challenges for medium-duty assets.\u00a0<\/span><\/p>\n

\u201cRemarketing outlets may be less available than those used by light-duty trucks. Medium-duty truck size and limited use may also present remarketing limitations. A truck remarketing specialist with an understanding of sales outlets may be required,\u201d Walker noted.<\/span><\/p>\n

Finally, there fewer medium-duty truck options than light-duty trucks.\u00a0<\/span><\/p>\n

\u201cFurthermore, medium-duty trucks are less likely to be utilizing telematics data. This means there is less available data to use for lifecycle analytics,\u201d Walker added.<\/span><\/p>\n

Tips for Managing Medium-Duty Lifecycles<\/span><\/h2>\n

Improving the lifecycle management of our medium-duty units is necessary. Getting started can be tough, but one recommendation is to use data to show the best replacement cycle.\u00a0\u00a0<\/span><\/p>\n

\u201cStagger the replacement of your fleet; it\u2019s easier to replace 20 trucks per year than 100. Know the OEM requirements for load and tow capacity, maintenance costs, and order lead time,\u201d said Dale Jewell, director, North American maintenance for Emkay.<\/span><\/p>\n

In addition to adhering to proper preventive maintenance schedules on the vehicle itself, the same is also true for upfit components and equipment.\u00a0<\/span><\/p>\n

\u201cThe best advice I can offer is to ensure your maintenance strategy is tailored to service those items as well to keep them in top operating condition. Also, be sure to keep data on the upfit service records. This information is beneficial when assessing the total cost of ownership for your vehicles, allowing you to further optimize your lifecycle parameters,\u201d said Powell of ARI.<\/span><\/p>\n

The operational impacts on older medium-duty trucks are even greater to the business than they are for light-duty trucks, noted Reid of Element Fleet.<\/span><\/p>\n

\u201cWhen medium-duty fleets allow the age of their fleet to grow too high, the field operations team will focus a lot more attention on how to fix trucks instead of how to better serve customers,\u201d he said.<\/span><\/p>\n

Getting the most out of your upfits is also vital advice.\u00a0<\/span><\/p>\n

\u201cConsider upfitting that can be transferred from an older vehicle chassis to a new chassis, as upfitting components tend to have a much longer useful life than a vehicle chassis\/engine. By doing this, the fleet is only paying for upfitting over one vehicle\u2019s term with minor transfer and reconditioning cost during chassis replacement,\u201d said Miller of Merchants Fleet.<\/span><\/p>\n

Planning is always important, but when it comes to medium-duty, it\u2019s critical for success.\u00a0<\/span><\/p>\n

\u201cFleet managers should work with their fleet management partner and truck dealer to choose the right specs for the job and for total cost of ownership. They should also work with their fleet management partner and aftermarket vendors to help avoid unnecessary costs and delays,\u201d said Krogen of Enterprise Fleet Management.<\/span><\/p>\n

Proper financial planning, including a sound own-versus-lease strategy, can work to overcome financial challenges, noted Walker of Donlen. \u201cWhere leasing is used, choosing the right lease product that is aligned with replacement strategy will also be key,\u201d he said.<\/span><\/p>\n

The end-of-life sale is a key component in a vehicle\u2019s lifecycle and largely impacts the final total cost of ownership.\u00a0<\/span><\/p>\n

\u201cConcerning remarketing, utilizing a remarketing specialist and\/or aligning with a strong fleet management company that understands the unique truck space can make a difference,\u201d Walker added. \u201cFinally, keep detailed records of truck maintenance and utilize telematics to gain insights.\u201d<\/span><\/p>\n

Trends for Medium-Duty Trucks<\/span><\/h2>\n

In terms of trends of the medium-duty trucks, fleets are increasingly more careful about the size and weight needs of their trucks and looking for ideas to better meet those needs, noted Reid of Element Fleet.\u00a0<\/span><\/p>\n

\u201cAdditionally, the manufacturer offerings have changed significantly since 2010, and clients are looking for help understanding the right options,\u201d Reid added.\u00a0<\/span><\/p>\n

As previously noted, data is essential in managing lifecycles.<\/span><\/p>\n

\u201cOne new and continuing trend concerns the use of more data to manage lifecycles and make data-driven management decisions. Use real-time dashboards to understand the readiness and availability of your trucks, historical and projected costs, and key performance metrics,\u201d recommended Walker of Donlen.<\/span><\/p>\n

Recycling upfit components, as mentioned, is also becoming common.\u00a0\u00a0<\/span><\/p>\n

\u201cThe recycling trend is influenced by increasingly expensive and complex upfit requirements and vehicle chassis costs,\u201d said Miller of Merchants Fleet.<\/span><\/p>\n

Powertrains are always an area of interest for medium-duty trucks.\u00a0<\/span><\/p>\n

\u201cFor several years now, gasoline engines have been the favored option for most vocational applications , and that preference continues to dominate the segment to an even greater percentage,\u201d said Powell of ARI.\u00a0<\/span><\/p>\n

The time it takes a vehicle to get to you from the time it is ordered to the time it goes through any specialized equipment or upfitters has a massive impact on a fleet\u2019s downtime.\u00a0<\/span><\/p>\n

\u201cMany fleet managers are becoming impatient with extended lead times for both the chassis and bodies and are looking for pre-built options instead. They risk settling with the wrong setup for the job, which can hinder efficiency and create safety concerns,\u201d said Krogen of Enterprise Fleet Management.<\/span><\/p>\n

Finally, like other segments, the medium-duty truck market is benefiting from increased technology and safety features.\u00a0<\/span><\/p>\n

\u201cDesign features continue to improve and provide benefits to drivers,\u201d Walker said. \u00a0<\/span><\/p>\n

 <\/p>\n

by Lauren Fletcher<\/a><\/p>\n

Source: https:\/\/www.truckinginfo.com<\/a><\/span><\/p>\n

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FLEET MANAGEMENT AUDIT<\/strong><\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"

Planning is always important, but when it comes to medium-duty, it\u2019s critical for success. Photo: Getty Images Medium-duty trucks, often considered Class 3 through Class 6 (sometimes encompassing up to Class 7 units), are the backbone of the work truck fleet.\u00a0 These trucks are used for hauling heavy loads, working in more extreme conditions, and…<\/p>\n","protected":false},"author":3,"featured_media":6160,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[119],"_links":{"self":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/6159"}],"collection":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/comments?post=6159"}],"version-history":[{"count":1,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/6159\/revisions"}],"predecessor-version":[{"id":6161,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/6159\/revisions\/6161"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media\/6160"}],"wp:attachment":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media?parent=6159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/categories?post=6159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/tags?post=6159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}