A vehicle’s total cost of ownership is comprised of its fixed costs, operating expenses, and depreciation per year or during the course of its service life, minus its anticipated resale value. During the course of a vehicle’s service life, TCO is subject to change due to a vehicle’s age and numerous external factors, which has a direct bearing on replacement policies.
How Technology Streamlines Procurement
The fleet procurement process, like most other aspects of fleet, is heavily dependent on the capabilities of modern-day technology. Online-based procurement systems help fleet and procurement professionals understand more about their operations so they can make impactful decisions.