Infographic: How Lost Assets Can Cost Your Company Millions

It costs a lot of money to own and operate construction equipment. It costs, even more, when they idle unnecessarily, break down or get lost or stolen. Tenna asset tracking can reduce these costs in three critical areas.

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How Lost Assets Can Cost Your Company Millions

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  1. Asset Management

Example: Articulate Hauler

  • Total Cost of Ownership Over 5 Years: $521,800

(includes purchase price, insurance, interest and depreciation minus resale value)

  • Total Cost of Operations Over 5 Years: $1,127,800

(includes operator wages, fuel, tires, maintenance and repairs)

  • Proper care and maintenance of assets can significantly reduce operational costs.

How Tenna Tracking Reduces Asset Management Costs

  • Identifies the location of every asset
  • Makes it easy to schedule preventive maintenance
  • Reduces repair costs, which average 5 times more than maintenance costs
  • Employees are more accountable; take better care of tools and equipment
  • Keeps assets more organized
  • Reduces amount of equipment lost or left behind on job sites
  1. Idle Time
  • Idle equipment can use up to one gallon of fuel per hour.
  • One hour of idle time every day costs up to $1,000 per year, per asset.
  • These costs go up as idle time increases.

 

% Idle Time

for 1 asset                 Idle Hours      Annual Cost 5-Year Cost

20%                            400                 $1,560            $7,800

25%                            500                 $1,590            $9,570

30%                            600                 $2,340            $11,700

35%                            700                 $2,730            $13,650

40%                            800                 $3,120            $15,600

  • 10 assets idling 40% of the time costs $31,200 per year.
  • 10 assets idling 40% of the time costs $156,000 over 5 years.
  • 100 assets idling 40% of the time costs $312,000 per year.
  • 100 assets idling 40% of the time costs $1,560,000 over 5 years.

How Tenna GPS Tracking Reduces Idle Time

  • Monitors location and performance of equipment 24/7
  • Automatically tracks idle time (requires plugging into onboard diagnostic port)
  • Idle time reports make employees more aware of operating costs
  • Employees become more proactive about shutting down engines when idling
  1. Asset Theft
  • Vandalism and theft cause 1/3 of all equipment loss dollars
  • Only 21% of all stolen equipment is recovered
  • Total industry theft losses estimated at more than $1 billion annually

How Tenna Tracking Reduces Theft and Vandalism

  • Identifies location of assets when they were stolen
  • Improves inventory control
  • Sends alerts for off-hours or unauthorized equipment movement
  • Sends alerts when equipment goes outside established “geo fences”

About Kristen Olson

mmKristen brings experience in start-ups and over 17 years in Human Resources. Her creative mind and non-traditional background results in innovative solutions to the programs, procedures, and standard human resource responsibilities.

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