In our previous article, we have explained the difference between the cost of ignorance (COI) and the return of investment (ROI). Click here to read. But most of us don’t know how to calculate the COI and why it is important to calculate the COI. In this article, we will explain both.
Considering the current economic conditions of the Kingdom, without prejudice, the businesses belonging to all industries around the country are facing challenges resulting in downsizing, declined profit margins and consolidations. In such an economic climate, fleet managers are forced to focus on the growth of the bottom line than the top-line growth.
In an industry where the fleet management cost makes most of the revenue of the company, sparing the generous spender spot can badly affect the company’s bottom line. To detect such spots and finding the solution for cost reduction is the core purpose of COI.
To calculate the fleet COI, Eagle-I offers you the close monitoring of fleet operations and provides you the platform for logging your fleet expenses which can be later used to compare to find the blind spots for thrifty spending. While calculating the COI for any fleet, consideration of the driver behavior is of vital importance. Eagle-I scores each driver based on their driving behavior, fuel economy, maintenance and productivity against their asset.
Under the Service/ Renewal module, Eagle-I offers an overview of expenses in terms of maintenance, fuel, and official document renewals. We can have a cost-benefit analysis of each vehicle separately in cost per km ratio. Eagle-I’s service and renewal module not only give an overview just for one asset but also the accumulative comparison of expenses between branches and on the timeline (total expense per month).
Please call Mr. Jamal +966 56 638 7859 or write us at email@example.com for a meeting to get it clarified fit for your needs.