As one of the world’s leading truck manufacturers, UD Trucks is investing a great deal in developing vehicles that offer better efficiency, fuel economy and environmental responsibility. All new trucks launched by UD Trucks Southern Africa since July 2007, already complies with Euro II standards. Through its environmental policy, UD Trucks aims to create a better environment by taking every possible measure to tackle global environmental issues. The company aims to develop environmentally friendly products through measures such as reducing exhaust emissions, improving fuel efficiency and reducing external automobile noise.
UD Trucks is also pursuing activities for energy-saving, resource-saving and waste reduction.
With the introduction of the Quon Extra Heavy range on the global stage, UD Trucks made a strong statement of its intentions to become an even bigger and more environmentally caring truck maker in the future. The Quon was the first truck in the world to conform to the very stringent long-term emission requirements in Japan. In fact it already complied in 2005, which was a year prior to the imposition of these regulations in Japan that are even stiffer than Euro 5.
In South Africa, the company has adopted a philosophy of introducing appropriate technology that not only adheres to local legislation, but continues to fulfill the needs of customers in various applications. We support industry actions to improve the quality of diesel available in Southern Africa.
The company will continually invest in making trucks that not only suit their customers’ requirements, but also don’t add to the already burdened environment. The company will also take various actions to reduce the volume of waste produced and will, during the course of the next few years, implement training and education programmes, so as to keep both employees and management informed with regards to environmental policies and matters.
Read the Green Dictionary here.
The importance of Managing Lifecycle Costs
At UD Trucks, we want to contribute to our customers’ profit by always endeavouring to offer products that strive to give the best lifecycle cost possible. We offer well-balanced range ensuring appropriate technology for the needs of our customers in the various applications. We also take great care to ensure that we provide a high quality product to be able to sustain our objective for the highest possible level of durability, and ultimately giving customers as much up-time as possible.”
The current economic environment once again places the emphasis on quality transport management and decision making for professional line hauliers, as well as the need of manufacturers to reduce and manage the cost of the transport function. These costs must be constantly viewed and compared with the net effect on the price of goods transported.
What is Lifecycle Costs?
Buying a truck involves so much more than just the initial purchasing price, and varies with each application. When calculating the lifecycle costs of vehicle ownership, typical factors that need to be considered include fuel consumption, tyres, finance instalments, insurance, diver wages, as well as maintenance, repairs and service costs.
The secret to understanding all the costs involved in owning a truck, is taking a holistic approach and managing the vehicle as an asset. This involves careful planning, operational control of the vehicle, consolidation of loads and routes, as well as the recording of relevant information and finally, managing the extremes.
As we are talking low lifecycle costs, always include the financial aspects of your business. It is about understanding more than just the operational side of a business by considering aspects like overheads, fixed costs, variable costs and income from the resale of your assets before judging what the true lifecycle cost of ownership is.
Vehicle Selection
The initial vehicle selection is crucial to the success of a fleet. Find the right vehicle for the job you are going to do is vital if you are to achieve acceptable operating costs and the full useful life of the truck.
Always remember the price you pay for a vehicle is not a major percentage of the total operating costs you will pay over its useful life or indeed the total number of months you will need to operate successfully to pay for it.
Depending on the type and size of vehicle you acquire and the number of kilometres you cover or hours that it works, the purchase price of the truck will be between 13% and about 23% of the total operating costs you will have over its useful life.
When choosing a vehicle, it is important to look at truck manufacturers that has a well-balanced range, which utilises appropriate technology for the needs of customers in the various applications.
The reputation of a manufacturer is important, as well as the level of support they will able to provide during the lifespan of your truck. The relationship between the fleet operator and the dealer and manufacturer is of vital importance, as this could determine the success of the support provide.
The purchasing price of the vehicle does play a role when selecting a vehicle, but in order to make an informed decision, one needs to review this in terms of cost per kilometre. The responsibility of the choice of vehicle lies with the fleet operator whose bottom line should determine the decision in the end.
Operation of the Vehicle
How much of the economic potential you will achieve from your truck will depend on how you manage the vehicle and the driver. The vehicle should also be operated in such a way that routes and loads transported should allow for at least a 80% utilisation factor on all your vehicles.
Driver orientation and training can play an crucial part in the success of a transport fleet, as operators need to ensure the maximise utilisation of these important resources. By, for instance, using the correct driving technique, an operator could optimise fuel consumption and therefore increase a company's overall profitability and productivity.
Maintenance & Service
The running costs of a truck should constantly be monitored and corrective action should be taken as soon as a problem arises. It is advisable to use only genuine parts, as this can significantly enhance the lifespan of the truck, as well as ensure the safe operation of the vehicle. As far as possible, try and use only manufacturer accredited dealers, as they utilise highly-skilled and trained technicians, as well as the latest technology to service vehicles.
Generally speaking, tyres tend to be under-managed and in the end could cost you a lot more than they should. Good tyre management leads to longer casing life. Find out about the merits of radial tyres and the importance of attending to detail like checking pressures, fitting valve caps and valve extensions and making sure the correct tread patterns are being used.
In essence it means that your truck must be “road-ready” at all times. If it is not available to do the work you could lose all or part of your contract. The trucking business is very competitive. Shippers, consignors and consignees have high expectations and demand fast, predictable service usually at lowest cost to them. If your truck is not properly serviced and looked after it won’t be reliable or last long enough for you to finish paying for it.
Resale of Vehicle
All of these factors will contribute to a truck's resale value once it becomes necessary to replace specific units. As a rule of thumb, constantly maintain a vehicle for easy disposal by keeping it in excellent condition. In this regard, your first objective as a fleet owner will be to make the vehicle a sought after second hand unity - your choice of brand could ultimately determine the resale value further. Something to keep in mind in your initial vehicle selection.
Lifecycle Costs in Brief
- Cost to purchase
- Cost to market
- Cost to operate (fuel, etc.)
- Cost of downtime
- Cost of disposal (market to sell)
- Cost of repairs and maintenance
- Cost of overheads, direct / indirect
Costs in Total versus Income Generated = Profit = Best selection