You may think you have a clear idea of what you’re spending on major assets, but the reality may be very different.
Earlier this month, Monitordaily posted an article by Reggie Peterson, AmeriQuest’s Director of Indirect Products, on the topic of “dark purchasing.” What that means, according to Peterson, is an inability to track where a company’s expenditures are going. Although this is often a significant problem for indirect spend, where smaller ticket items often receive minimal oversight, “dark purchasing” can apply to major asset acquisitions as well.
The article explains how this applies to fleet owners who may not be aware of the hidden costs lurking in their assets. In order to determine the true cost, Peterson says that fleet owners need to examine “the total cost of ownership during the life cycle of existing asset(s).”
Among the things to consider are maintenance and repair costs, downtime losses while trucks are in the shop, and eventual resale value. Other tips from Peterson to avoid “dark purchasing:
- Don’t look at only the “sales price” of an asset. Lower on the front end may not give a true picture.
- Track the costs of maintenance and repair on older assets to see if waiting to replace them may be more costly.
- Put a process in place to find and use breakdown service providers that offer pricing discounts and negotiated service rates.
And, what may be most important, in Peterson’s words, “Smart, cost-effective purchasing decisions rely on available data funneled through an organized, transparent procurement process that identifies approved vendors, procedures, and those in authority to make and enforce the purchasing decisions.
For further details, read the full article.