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Case study: Fleet management partnership

By FLEET e-news posted 04-02-2014 09:31

  
Excavation and pipe laying company Killard Excavation has partnered with JCB Construction Equipment Australia in a fleet management support model that has so far delivered around 40 per cent savings on fleet maintenance costs, according to Managing Director Jerry Daly.

Over the past 15 years, Killard Excavation, which works primarily on new water, recycled water, and sewer mains projects, has grown from a one-excavator operation to operating across NSW and Queensland. 
JCB Killard Excavations partnership IPWEA Fleet Management news
The fleet management model developed in partnership with JCB was designed to help Killard control costs and manage resources as the company continues to grow.

“As the company expanded, we were hiring additional machines to meet demand and at the same time updating old plant to new specifications. In addition, the operations team was spread thin, organising repairs and support across multiple brands,” Daly said.

“We needed a more effective, efficient and streamlined approach to operations. JCB worked with us on a bespoke solution that provided new machinery financing and consolidated parts, service and maintenance for both existing and new plant. The result is […] savings in the order of 40 per cent on maintenance and operational costs," he said. 

Daly said that ultimately, upgrading the fleet represented better overall value than trying to retrofit machines to current standards.

“Older machines need to be retro-fitted for features like ROPS, FOPS, auto-hitch and anti-burst valves. That could easily cost $30,000 and at the end of it you still have an older machine. The cost of retro-fitting also comes out of cash flow, while you can finance new machines, so upgrading makes a lot of sense."

In the picture: Killard Excavation Managing Director, Jerry Daly (left) with JCB CEA NSW State Manager, Phil Withell.

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