Fleet Out-Sourcery Optimizing the Outsourced Share of Rental Activity.

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Fleet Out-Sourcery Optimizing the Outsourced Share of Rental Activity

The Idea If rental demand is variable, and If you have access to an outsource supplier How do you optimize rental fleet size? Can it affect rates? 2

3 Based on projecting 5,439 Chargeable days

-Project 4 factors for the next year #Chargeable days Monthly distribution of days Utilization of fleet/Turns Costs-annual-monthly Outsourcing Cost/each additional fleet vehicle Administrative Costs Key Ingredients to Optimize Sedans 4

5 Projecting Chargeable Days- A Pinch of Caution

Projecting FY 2012 Distribution of Days for MS Sedans 6

JulAugSeptOctNovDecJanFebMarAprMayJunTot Proj. Monthly Distribution of Chargeable Days ,302 Fleet Utilization (Chargeable Days/Month/Vehicle) Fleet Utilization (Chargeable Days/Month/Vehicle) The Role of Vehicle Utilization in Determining Fleet Size 7

Essential Cost Information 8

10 Planned Utilization, Days and Fleet Size Versus actual By under-projecting activity levels fleet resources were not wasted. Surge was met by outsourcing

Review and Summary 11

FY 2012 Planned Days versus Actual 12