Charging Ahead
A closer look at the transition to an Electric truck fleet.
Fleet electrification is the transition of fleet vehicles from internal combustion engines (ICE) to zero-emission electric vehicles (EV) and can be pretty complex. This is a typical project in which we supported such a transition of a large service provider. From a fleet that consisted of conventional trucks only, to a mix of electric vehicles. Using a very practical approach.
Step 1: Needs Assessment and Analysis
We began the project by conducting a comprehensive needs assessment of the logistics service provider’s operations. Identify specific route profiles, transportation requirements, and payload capacities. Evaluate the existing fleet’s performance metrics, considering factors like fuel efficiency, maintenance costs, and overall operational effectiveness.
Step 2: Environmental Impact Assessment
Assess the environmental impact of the current fleet and establish sustainability goals. Evaluate local and global emissions standards, regulatory incentives for adopting electric vehicles, and the overall commitment to environmental responsibility. Consider the potential reduction in carbon footprint and the alignment with corporate sustainability objectives.
Step 3: Infrastructure Readiness and Investment Analysis
Evaluate the infrastructure readiness for electric vehicles, considering charging station availability, electricity grid capacity, and the feasibility of integrating electric trucks into existing facilities. Analyze the upfront investment and ongoing operational costs associated with adopting electric vehicles, factoring in potential government incentives and subsidies.
Step 4: Total Cost of Ownership (TCO) Calculation
Perform a thorough Total Cost of Ownership analysis for both conventional combustion engine trucks and electric vehicles. Consider not only the acquisition costs but also operational expenses, maintenance costs, fuel/electricity expenses, and potential resale value. Compare the TCO over the anticipated lifespan of the vehicles to determine the most cost-effective solution.
Step 5: Pilot Implementation and Continuous Monitoring
Implement a pilot program to test the chosen fleet mix and ratio. Monitor the performance of electric vehicles in real-world logistics operations, gather data on energy consumption, charging efficiency, and overall reliability. Use the insights gained during the pilot phase to fine-tune the fleet mix and make informed decisions on scaling up the adoption of electric vehicles.
By following this five-step approach, our client could systematically evaluate and determine the optimal fleet mix and ratio, striking a balance between conventional and electric vehicles to meet operational needs while promoting sustainability. Especially during the complex timing of investment and transition.
Vehicle fleet rationalization. EV is not just another variable to take in.
By following this five-step approach, our client could systematically evaluate and determine the optimal fleet mix and ratio, striking a balance between conventional and electric vehicles to meet operational needs while promoting sustainability. Especially during the complex timing of investment and transition.
In this project we used a set of supply chain network models to simulate the different fleet mix scenario’s and simulate the performance and costs. VRP and costs database of our Spanning Tree platform.
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We specialize in guiding organizations with the transition to digital supply chain management and the use of quantative optimization and simulation models. Our expertise lies in leveraging these advanced analytics tools to streamline operations, enhance visibility, and optimize supply chain performance.