Fleet Services to Reduce Stock, Introduce New Labor Rate
- August 19th, 2020
- in Uncategorized
UA’s Fleet Services will soon reduce the number of vehicles in its fleet and introduce a new labor rate in an effort to improve processes within the department, support sustainability, and continue to provide high-quality vehicles and services.
A Vehicle Allocation Methodology study by Mercury Associates, Inc. looked at the use of UA’s vehicle fleet by departments across campus and in the University’s motor pool. The months-long study separated vehicles into the categories of eliminating, review, and retain based on utilization and criticality.
The study recommended that Fleet Services eliminate 56 vehicles from its fleet and motor pool due to low use and criticality by the department or University. The elimination of these vehicles will result in a total cost savings of more than $2 million.
“As our business practices continue to change, so will ‘right-sizing’ our fleet to accommodate what departments need in order to serve our campus community,” said Tony Johnson, executive director of Fleet Management.
Cost savings from eliminating unused and outdated vehicles, as well as funds from fleet vehicle auctions, will assist Fleet Services in future vehicle purchases.
The UA Fleet Study performed by Mercury in 2019 determined additional areas for improvement. Starting Oct. 1, Automotive Services will charge an hourly labor rate of $118, plus the price of parts for services, for all UA vehicles. The new hourly labor rate is based on the industry standard.
UA’s Fleet Study Committee spent several months carefully reviewing existing policies and identified several ways to enhance operations while reducing financial loss.
“Fleet Services is dedicated to providing safe transportation options for University-related business,” said Mario Globetti, associate director of Fleet Services. “Our programs and policies aim at cost-efficiency, and in the midst of our current situation, we feel we can offer cost-saving options that will benefit the University as a whole.”
Fleet Services, in collaboration with the Fleet Study Committee, introduced several new policies earlier this summer that aim to provide more efficient and cost-effective services to University operations.