Cars lined up outside

Three ways to optimize your fleet amidst the microchip shortage

Wednesday, August 11, 2021

By: Chad Christensen, Strategic Consulting

Are you facing vehicle allocation challenges due to OEM production delays? If so, you’re not alone. Original Equipment Manufacturer (OEM) production delays are constraining the number of vehicle replacements for many fleets. A steady replacement rhythm is a critical best practice to ensuring your fleet’s health remains balanced and cost-effective. So, how can you ensure your fleet stays productive given today’s constraints? Unique challenges call for innovative solutions. Keep reading to discover proven strategies identified by Element’s Strategic Consulting team

1. Re-distributing Vehicles

Re-distributing vehicles from high to low mileage drivers (and vice versa) in your fleet, can help ensure adherence to optimal replacement timing as well as reduce downtime from vehicle maintenance. This can prove to be especially helpful for service fleets that put high mileage on their vehicles.

Example of vehicle redistribution with cars and dollar amounts

2. Cascading Vehicles

By cascading vehicles that are approaching the end of their useful life to less demanding or lower capacity jobs, you can save costs and ensure optimal utilization.

Client success story: A medium-sized client in the construction industry was looking for ways to save costs by utilizing vehicles near the end of their life that did not need to be remarketed yet. Element helped to conduct vehicle audits to determine which trucks were suitable to be cascaded to another job or retired. Cascading doubled the working life of the new trucks and saved ~$2,500 per truck in maintenance and depreciation.

3. Seeking Alternative Vehicle Models

Some OEMs are currently experiencing longer production delays than others. Element can help you decide between alternative vehicle models best suited to meet your fleet sustainability, safety, and total cost of ownership goals.


Visit our OEM Parts Shortage page or contact Element Fleet Management for consulting expertise to help you navigate the microchip shortage with confidence.

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