TCO approach
Arval applies the TCO (Total Cost Ownership) approach, i.e., optimisation of the total cost for your vehicle ownership.
TCO approach
This is one of the pillars which our offer lies on and it is this system we use in order to optimise your car fleet management.
The TCO approach answers to the following question:
What is the total cost for the functioning of my car fleet during a given period of time, widening the vision as much as possible?
- This includes the direct costs (invoiced and listed), the indirect costs (human costs) and the hidden costs (costs inferred by the lack of optimisation)
- Another vision angle includes the Price (the most visible constituents), the Cost (adding the remainder of direct costs) and the Value (all included)
The Price part is generally optimised within a standard purchase process. The Cost and Value parts provide a greater optimisation potential.
Arval’s park management is developed following three principles:
- The strategic management including all decisions relating to:
the budgetary forecasts
the contracts and the car policy
the harmonisation of the auto park strategy with the company goals - The tactical management including all decisions rand actions relating to
the costs and volumes control
contracts readjustments
the application of indicators and specific reporting
the opportunities made available by the market, the renter or the manufacturer - The operational management, including all the items relating to the daily operations and which favour the normal functioning of a car fleet.