[Moving Mountains] Delivery van mileage

[Lori Ayre]

see what I mean?

On 7/27/07, Bruce Smith <bsmith at scls.lib.wi.us> wrote:
>
>  Hi Rosario,
>
> There's a lot here, but I thought I'd put as much out there on the subject
> that I know in case any of it's helpful to others.  So, if you're not
> interested in the nuts and bolts of truck purchasing and maintenance, you
> can skip this response.
>
> In the South Central Library System (SCLS), based in Madison, WI, we
> operate a delivery service for the 52 member public libraries in our 7
> county system (about 10 million items per year) and serve as the statewide
> delivery service for Wisconsin (about 1.7 million items per year).  In
> total we have 20 structured routes, of which 4 of the local routes go out=
 2
> times per day and 2 of the local routes go out 3 times per day, due to the
> large volume, for a total of 28 route runs each week day.  Our SCLS routes
> go out Monday through Saturday and our statewide routes are run Monday
> through Friday.  We have a 24 vehicle fleet which covers around 820,000
> miles yearly.
>
> Up until about 5 years ago we had been purchasing Chevy 2500 Express cargo
> vans.  Many years ago we had put the vehicle purchase out to bid, chose t=
he
> Chevy cargo model and then implemented a fleet maintenance and replacement
> model the previous delivery coordinator here learned when working in the
> baked goods delivery business.  The main idea of the model is once you ch=
ose
> the vehicle make/model, future vehicle replacements/additions should be of
> the same model, so we did not put this out to bid after the Chevy choice =
was
> made.  With our fleet program we typically get about 8-10 years of service
> and around 400,000 miles out of our vehicles.  The fleet program model and
> reasons are as follows:
>
>    - Religiously follow the maintenance schedule as detailed in the
>    service books that come with your vehicle.  Have drivers perform a pre=
-route
>    vehicle inspection each day (takes 5 minutes) to include checking fluid
>    levels, quick visual inspection of engine compartment for any evidence=
 of
>    fluid leaks, and exterior check for tire or body problems.  We also do=
 a
>    more detailed weekly vehicle inspection (takes 15-20 minutes) which in=
cludes
>    visual inspection of drive train, tire inspections and checking that
>    electrical components (lights, etc...) are in working order.  Catching
>    things quickly prevents the components down the line from suffering un=
due
>    wear/damage which can result in higher repair costs and a shorter vehi=
cle
>    life.
>    - Replace components as needed, unless the cost of the repair and
>    replacement exceeds the value of the vehicle.  Typically the death of =
one of
>    our vehicles happens with the 2nd transmission replacement.  We know,
>    because we stick with the same models, that historically the transmiss=
ions
>    usually fail at around 200,000 miles.  A 4-5 year old vehicle with this
>    mileage still has a higher market value than a $2,000 transmission
>    replacement.  At 8-10 years and 400,000 miles the vehicle worth is usu=
ally
>    less than a new transmission.  Also, the working parts on the vehicle =
are
>    worth much more than the vehicle itself at this point.
>    - Due to our fleet size, it's more economical to have an in-house
>    mechanic.  After we perform a last rites ceremony for a vehicle, we re=
move
>    working parts we can use to repair the other models like it still in u=
se
>    (especially body parts like doors).  If a door goes because of age or =
damage
>    it can cost $1,000-$1,200 to replace at a body shop.  By having the sa=
me
>    models, we can reuse doors from old vehicles at no cost, other than our
>    mechanics time to switch doors, which is much less than $1,000.  Once
>    stripped, we send the vehicle's skeletal remains to a salvage yard.
>    - Our cost analysis for this fleet program model has been as
>    follows.  Say it's an 8 year vehicle cycle we are planning for.  In our
>    model, we purchase the vehicle for, say, $20,000 and will have no trade
>    in/sale return for the vehicle for it when it dies.  In a model where =
you
>    would purchase 2 vehicles in the same 8 year cycle, the first vehicle =
would
>    cost $20,000 and the second vehicle, with inflation, costs $22,500.  If
>    these vehicles get around $5,000 each at trade in (approximate current=
 Kelly
>    Blue Book trade in value for a 4 year old Chevy Express van with 200,0=
00
>    miles), the net purchase cost for those vehicles in the 8 years is $32=
,500.
>    Note, if you sell as a private seller, the value for these is $1,500-$=
2,000
>    higher than trade in.  Our dealership salesperson told us we should al=
ways
>    sell privately for these types of vehicles, if we ever would, because =
the
>    used buyer market for cargo vans is very strong with people in the
>    construction trades industry always looking for used cargo vans.
>    - With the $12,500 difference in purchase costs between the models,
>    this leaves the question of maintenance costs; will the maintenance co=
sts of
>    the single vehicle be $12,500 more in the last 4 years of its life tha=
n the
>    first 4 years of maintenance costs of the 2nd vehicle purchased in the=
 other
>    model?  In our experience (we're on our 37th vehicle since our service=
 began
>    in 1975) is it is not.  While the last 4 years of the vehicle does cos=
t more
>    in maintenance than the first 4 years, it is usually not that much mor=
e, the
>    largest cost being the transmission replacement.  However, it's happen=
ed
>    we've had a transmission go out earlier in its life (always after the
>    warranty runs out), so projecting maintenance costs is not an exact
>    science.  There are two other pieces we get in cost savings, which is
>    $2,000-$3,000 in reusable parts from a deceased van and we only have t=
he
>    costs of lettering and outfitting the vehicle's cargo area once, as op=
posed
>    to twice.  In the end, we calculate that when you amortize the costs of
>    purchase and maintenance over the 8 years, our program saves us $1,000=
 to
>    $1,500 per year, per vehicle over if we turned over vehicles more
>    frequently.
>
> That's our program, which we currently employ, however, we have adapted to
> purchasing different types of vehicles to handle the volume growth.  As L=
ori
> mentioned, we've moved to diesel vehicles because the durability of the
> engine should give us another couple of years and a 100,000 miles of life=
 or
> more.  Also, diesel vehicles typically can have a 25% or better fuel
> efficiency (at least the ones we've went with do) and historically diesel
> has cost less at the pump, though, until the last few months, it had been
> higher than unleaded since Katrina.
>
> Lastly, on our vehicle reasons to switch to diesel, Wisconsin has a
> growing biodiesel industry and we have moved to using a 20% blend (B20) i=
n 3
> of our diesels and a 100% biodiesel (B100) in our other 4 diesels.  20% of
> our total fuel purchase is now biodiesel.  There's nothing that needs to =
be
> done to diesel vehicles to switch to biodiesel.  In fact, it's a natural
> lubricant for fuel lines and seals and runs so much cleaner (our garage d=
oes
> at times smell a little like popcorn or french fries, which if you're hun=
gry
> in the morning can be cruel), so it's better for the engine life.  Howeve=
r,
> for those of us in the colder climates it's recommended that you do not u=
se
> more than a 20% blend in temps under 50 degrees.  Fuel efficiency and cos=
ts
> have been similar to petroleum diesel with arrangements we have made with=
 a
> local biofuel coop and the U of Wisconsin-Madison, which has a B20 pump on
> campus.
>
> The main reason we went to different trucks is to, as Lori mentioned,
> increase the driver/load ratio.  Though our statewide volume growth is not
> as large as the growth from the patron's use of our ILS system in SCLS, it
> had grown to a point that we were going to have to look at splitting some=
 of
> our statewide routes which can travel between 300-530 miles per day.  Aft=
er
> much research we began replacing our Chevy cargos as they died with the
> Dodge Sprinter.  They're made by Mercedes and do cost around $6,000-$8,000
> more than the standard cargo van, but they get around 22 mpg vs. the 15-16
> mpg we were getting with the Chevys.  And, their payload capacity is twice
> as much as the Chevy/Fords (2,000 lbs. vs. 1,000 lbs.).  This is where we
> get the extra purchase pay back with in a year, by not having had to split
> any of the statewide routes and pay for the costs of additional miles, and
> most importantly, the labor to drive those miles.  FedEx was the first to
> use these in the U.S. and now I see them all over.  Their routine
> maintenance costs are less, only needing an oil change every 12,000-15,000
> miles, but parts will be more expensive as they will come from Germany.  =
We
> haven't had a single part failure on the 3 we have, with the 1st one havi=
ng
> over 200,000 miles on it.
>
> Locally to handle our large volume within SCLS, we went to Mitsubishi Fuso
> trucks with 14-16 foot boxes.  We can carry 3 times to load with these th=
at
> we could with a cargo van and the fuel efficiency is only 3-4 miles less =
mpg
> than the Chevys.  Not only did we not have to split routes, we actually w=
ere
> able to consolidate some routes together with the higher load capacity.  =
In
> order to not break the drivers' backs I designed a cart with a local
> manufacturer that enables the totes we use to transport materials with to
> stay on wheels throughout the entire delivery chain without any driver
> lifting.  We put lift gates on the trucks, so when the totes are filled at
> our central sorting hub, they get placed on the carts and stay on them in
> transport and right into the library.  They stay at the libraries for them
> to use to move the totes to processing areas without lifting and then are
> used by the libraries to put the totes on for their outgoing delivery.
> We've greatly reduced our local mileage and driver time and have been inj=
ury
> free for 14 months.
>
> The other new thing we did in purchasing the box trucks for our local
> routes is we bought used.  After analyzing the used truck market, we've
> found that trucks of this type are best found through truck sales compani=
es
> when they are returned to them after a leasing arrangement.  We've found
> them in the 3-5 year old range with 90,000-120,000 miles.  Typically leas=
ing
> arrangements have maintenance plans built in to them so they come in good
> shape.  The best thing is we bought each of our 4 for an average of $15,0=
00
> vs. the $38,000-$42,000 new ones were listed at.  We think we'll be able =
to
> get 6-8 years or 300,000 miles out of them.
>
> One last thing, the Dodge Sprinter and Mitsubushi Fuso have both developed
> electric hybrid models, though they are not yet on the American market.
> Dodge is testing theirs with FedEx and Mitsu is selling them in Japan.
> These are the only hybrid options I'm aware of in the commercial cargo cl=
ass
> market.
>
> Good luck with your vehicle planning and please feel free to contact me if
> you have any questions!
>
> Bruce Smith
> SCLS Delivery Coordinator
>
> At 03:43 PM 7/24/2007, you wrote:
>
> Folks:
>
> If you own your delivery vans, how many miles do you typically put on your
> vans before you start to consider trading them in? We currently own 2 Ford
> Econoline vans, one purchased in Jan. 2005 and the other one acquired in
> June 2006. We put about 150 miles/day on each, or about 750 miles/week (in
> LA/Orange County traffic). The older van has approximately 92,000 miles on
> it right now. In the past, we've started thinking new van at around
> 100,000
> miles.
>
> Do you keep your vans for longer mileage? Thanks for any and all rsponses.
>
> Rosario Garza
> Executive Director
> MCLS
> 3675 E. Huntington Dr., Ste 100
> Pasadena, CA 91107
>  http://www.mcls.org  /   rgarza at mcls.org
> 626-683-8244    /    FAX: 626-683-8097
>
>
> _______________________________________________
> MovingMountains mailing list
> MovingMountains at swonlibraries.org
>  http://www.swonlibraries.org/mailman/listinfo/movingmountains
>
>  Bruce Smith
> Delivery Coordinator
> South Central Library System
> 1601 Gilson Street
> Madison, WI 53715-2127
>
> voice:           (608) 266-4695
> fax:             (608) 266-4881
> e-mail: bsmith at scls.lib.wi.us
> web site:        http://www.sclsdelivery.info
>
>
> _______________________________________________
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> MovingMountains at swonlibraries.org
> http://www.swonlibraries.org/mailman/listinfo/movingmountains
>
>


-- =

=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
Lori Bowen Ayre
The Galecia Group
lori.ayre at galecia.com
(707) 763-6869
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