Vehicle Costs in Developing Countries
Vehicle costs typically represent upwards of 20 - 25% of recurrent costs and often an organizations highest capital expenditure. Next to salaries it is often the largest expense a company or organization meets.
Mainly because of the cost in emerging economies of good vehicle management skills, companies or organizations tend to attempt to contain rather than control these costs. Typically a managers accepts what he knows to be overruns in vehicle costs because he/she does not have the time or resources to prevent it.
Many managers make attempts at vehicle management but few truly succeed. Failure mainly occurs for the following reasons:
In emerging economies a simple system that works is always more effective than a complex system that half works. There are many elements and levels to vehicle management but a simple an effective system will focus on the following five components of inventory, maintenance, fuel, repairs and reporting.
A proposal for improving your vehicle management can be downloaded here.
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-N Gomes Director Whatana Investments Mozambique
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