IVMS Ownership Costs

Owning IVMS can reduce the cost of running your fleet

During a recent assessment of a large mining fleet a comparison was done to determine the return on investment for DigiCore’s IVMS and these are verifiable findings:

 

Ownership costs associated with a $70,000 vehicle without IVMS:
Average distance travelled per month per vehicle 2,990 kilometers
Operating cost for 4-wheel drive, per km: $0.3058
Total monthly operating cost per vehicle (calculated) $914.00
Total monthly “standing cost” per vehicle $1276.00
Total cost per vehicle (without IVMS) $2191 per month
Ownership costs associated with a $70,000 vehicle with IVMS:

The total operating cost of IVMS, including the bureau service fee and GSM communication, is no more than $40 per month per vehicle (and less for larger fleets, please contact us).

Fitting the unit adds approximately $2,100 to the purchase price of the vehicle, which equates to $38 per month additional “standing costs” for the vehicle. This means that IVMS per se adds a total of $40 + $38 = $78 per month, varying the total monthly cost from $2,191 to $2,267, or an uplift of 3.4% over the life of the vehicle .

Consideration:

The point to consider may be this: if drivers are aware their driving behaviour is being monitored, what would the expected savings be if they:

  • ceased unauthorised trips
  • reduce fuel utilisation by keeping to the speed limit and
  • don’t abuse vehicles through harsh braking, excessive idling and over-revving?

The above would give a large saving, even before the unquantifiable costs of an accident, an injury or loss of human life, litigation, accident investigation and lost production are brought into the equation. It effectively means that the fleet operator is already ahead commercially and that driver safety effectively comes at no extra charge!