Jun 2020

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whitepapers

Total Cost of Ownership

Find out how TCO (Total Cost of Ownership) is calculated in JAT Fleet Management.

Total Cost of Ownership

The TCO (Total Cost of Ownership or Total Cost of Ownership) is a calculation that determines the total cost / the real value of a vehicle, and includes not only direct costs, but also other expenses, such as maintenance costs , cost of ownership, usage costs and purchase value.

The TCO calculation can be a valuable decision support tool, as this value can help you determine when to replace some vehicles or consider changing the type of contract for each vehicle, for example.

 

How it is calculated?

Recognizing the importance that TCO has for fleet management, JAT Fleet Management, Orbcom's latest fleet management solution, provides a feature that allows you to calculate TCO.
 
This tool calculates the TCO based on the value of the autonomous tax rate.
 
Normally, the tax rate may vary according to the cost of the vehicle (own purchase / renting regime) and the type of vehicle in question (class).
 
In addition to verifying the increase in the purchase / renting value of the vehicle after the application of the autonomous tax rate, it is also possible to verify the impact that the application of the tax has on all vehicle expenses - in the value of insurance, maintenance, ownership expenses, and any other expenses that are available on the platform - and thus check the real value that the vehicle represents for the organization.

In addiction to that, the TCO Calculator provides also a graph, which allows you to check all the expenses that are included in this analysis, and what percentage they represent towards the total costs.
 
The calculation of the TCO is essential for you to have an improved view of the performance of your fleet and to identify some opportunities for improvements that could contribute to a more profitable and productive fleet.

If you need more informations, please contact us: info@orbcom.pt or ask for a free trial.