SCOPE OF WORK FOR UTILIXATION MANAGEMENT SYSTEM FOR SOUTHERN CROSS TRUCK RENTALS
Introduction:
Southern Cross Truck Rentals is a business involved in rental of commercial vehicles located in Sydney, New South Wales. There are two approaches taken by the business. These include Casual Rental – this is where people hire vehicles on a casual basis from one day to twelve months without a commitment beyond a defined period and Term Rental – these are customers who enter into a contract for a defined period for a specific vehicle and are committed to that vehicle and that contract for its term. Usually over 36 months.
The success of the company is based on revenue generated being in excess of the breakeven cost of the fleet ownership and cost of overheads. To effectively manage this situation, utilisation is a key performance indicator of how the business is tracking. Breakeven costs are critical to understand what the minimum utilisation needs to be to generate profit.
Southern Cross Truck Rentals is looking to deign a management system that considers costs, breakeven position and utilisation across its asset class to make effective business decisions.
The System Requirements:
Establishing Breakeven Costs:
The system will be required to consider:
- Repayment schedule
- Insurance schedule
- Registration and green slip
- Tyres
- Repairs and maintenance
- Overhead contribution
The breakeven figure can then be generated for the following points:
- Vehicle
- Asset class
- Non term rentals
- Term rentals
- Whole of fleet
The breakeven figure will be able to tell the company the income needed to generate profit.
Utilisation:
Utilisation is worked out by days on rent divided by days available. It is reported as a percentage and is a key consideration of performance for vehicles and class of vehicles. When a company is going through growth or is retracting utilisation by class allows the company to make informed decisions about purchasing or disposing of equipment. The days available are worked out on days per month so therefore vary from 28, 29, 30 or 31, depending on the month. The days available are worked out by vehicles in the class. For example, one vehicle used for 28 days for the month of January would be utilisation = 28 / 31 or 90% utilisation. However, if it was 2 vehicles, one used for 28 days and the other used for 14 days, this would be utilisation = (14+28) / 62 or 68% utilisation.
The graph below will outline an example of the days available subject to vehicles on fleet:
The system will be required to then plot points on a line graph with utilisation on the vertical axis (x) and months on the horizontal axis (y). The breakeven figure will be plotted horizontally across the graph at the established breakeven point. The plotted points will be circles with one V to up to 20 or 30 V where V = the number of vehicles in the class. The system will generate reports and flags. The first report required will be a utilisation report by:
- Vehicle
- Vehicle class
- Non term rental
- Term rental
- Whole of fleet
The flags required will be whenever a vehicle, class of vehicle, a term contract or the whole of fleet utilisation drops below breakeven. Further, a flag will be required when a class of vehicle has three consecutive months of utilisation greater than or equal to 70%. A further flag would be required when a class of vehicle has three consecutive months where utilisation is less than or equal to the breakeven percentage. These reports will require company in intervention and decisions. The system will be required to assist in the decision making process.
Decisions:
Utilisation greater than or equal to 70%
- Alternate vehicle class
- Cut advertising to class
- Buy vehicle
Utilisation less than or equal to the breakeven percentage
- Increase advertising
- Targeted sales to that class of vehicle
- Look at costs (actual verses projected)
- Sell vehicle
Hi,
I have gone through the brief details mentioned on the job. I have done multiple jobs with C Programming which are the skills required to get this job done. Lets start the chat so we can discuss this job more in detail then we will discuss the final budget, Right now I am placing default bid. We will discuss the final budget after detailed discussion and going through detailed requirements. Thanks.
Hello
I am experienced Software developer and consultant with previous experience in developing, shipping and maintaining a lot of pc applications. I have reviewed your requirements regarding UTILIZATION MANAGEMENT SYSTEM for your truck rental business. I have gone through your requirements regarding utilization and and break even percentage also and would like to help you out with this project.
Please communicate so we can discuss in details.
Regards
Anshu
Hi there,
Thanks for the details.
The management system will be a web based program. You have shared enough details but we need to further define the scope of the system. We also need to define flow of the system & user roles. I can help you out with the document.
Let me know when you're available. So, we may discuss it in detail.
Best,
Adeel
Hello, i'm interested in your project. Please send me a message so that we can discuss more. I prefer to submit my detailed proposal after our discussion.
Note:
+ We are flexible with changes.
+ https://www.freelancer.com/u/arjun366333 - myprofile link
+ We also provide post-implementation application support &maintenance
Thanks, regards Kanta Singh.
Hello,
Hope you are doing well !!
I read your job description completely and i found my skills are relevant to your project.
I am having 5+ years of experience in same domain with 100 % client satisfaction.
I can assure you for the things like –
· I will use the best technology for coding, design, development, testing.
· I will work according to your needs and instruction.
· I will give recommendations if required in the project.
· Provide daily update report
· Handover all the source code after completion of the project.
I am waiting to hear from you soon.
Thanks.