The 4 Key Stages of Fleet Asset Lifecycle Management

Statista says the global supply chain management market is expected to reach 37.4 billion U.S. dollars by 2027, which emphasises the global demand for the consistent flow of goods and services to end users.

A successful supply chain operation needs asset management to function successfully. This involves ensuring that assets are kept in good condition and monitored effectively, to increase their longevity. All of which contribute to improved productivity, efficiency, and business profit margins.

To achieve this, businesses need to understand the life cycle of their assets, which are typically divided into four lifecycle stages.

A 4PL Software Provider lets you track and understand each stage better, so you can make better procurement decisions, maximize the efficiency of equipment, and reduce unnecessary maintenance costs.

Fleet assets will be tracked continuously through real-time data, against key performance and maintenance indicators. 

Do you want to learn about each stage? Let’s get straight to them:  

1. Planning and acquisition

This involves the planning behind acquiring or purchasing an asset. Because assets are costly, you need a software platform to help you analyse trends and data on existing assets, so that you can find the best one for your business. Retrieve asset history reports and see which ones work well and which ones don’t, and which ones add the most value to an operation. Then, you can acquire suitable assets that adequately fit the businesses’ needs, are not too expensive, and also help the business generate sufficient revenue. You can then buy the asset at the most effective price. From there, it will enter the stage where it can be tracked throughout its entire life cycle. 

2. Utilisation

In this stage, asset utilisation is exercised to its full potential, where production activities occur. As time goes on, your assets will need maintenance and start depreciating.

3. Operation and maintenance

Here, the assets will undergo effective management and utilisation, as part of company operations which will include consistent maintenance, asset monitoring, and repairs if necessary.  Managers can use a 4PL platform to create maintenance plans that involve scheduling services at regular intervals and to prevent sudden costly breakdowns. They can set up customised maintenance alerts for specific types of vehicle diagnostics such as oil leaks, brakes, tyres, and more, so they can pinpoint any malfunctions in real-time, and intervene if necessary. Time is of the essence in the fast supply chain, so this will reduce or prevent unexpected downtime on the roads or with deliveries. If necessary, they can find replacement vehicles for job tasks, in the event of planned or unplanned maintenance, which will ensure the timely delivery of goods to customers. In the long run, it can minimise emergency repair costs, prolong asset life expectancy can even help an asset perform better than before.

4. Disposal

At this stage, the asset has reached its maximum capacity in the business and there is no longer a need for it. It can either be sold, re-purposed, thrown away, or recycled. Although the asset has no business value, it should still be disposed of efficiently so it does not harm the environment. This process could even involve dismantling the asset piece by piece or wiping it clear of data.

However, if there is still an operational need for the asset, a new asset can be acquired and the asset life cycle can begin again.

Unfortunately, this stage can be unavoidable, but you can prolong the lifespan of your assets, and ensure effective utilisation with the help of INControl’s 4PL solution. Get top asset management at your fingertips today.