In the competitive landscape of fleet management and equipment utilization, organizations must continue to refine their strategies to increase profitability and efficiency.

Systems Controls Operational Risk Evaluation (SCORE!) is a potential solution offered by Moss Adams professionals to help you streamline practices, reduce risks, and improve profitability through pricing and utilization strategies.

Comprehensive Action Plan

Utilizing tools developed by Moss Adams, we evaluate the operational processes you specify and deliver improvement recommendations and a comprehensive action plan, generally within one to two weeks. This report offers an objective assessment of your organization’s operations in designated areas and includes actionable recommendations for enhancements and improvements.

By intently focusing on areas of highest importance to you, we gain a thorough understanding of your relevant business processes, financial controls, and compliance practices, our risk evaluations not only uncover hidden risks but also equip you with the information needed to strengthen your operations.

This type of risk evaluation is specifically designed to assess and improve the systems and processes within your organization. In the competitive landscape of fleet management and equipment utilization, organizations must continuously refine their strategies to increase profitability and efficiency.

SCORE! engagements can evaluate your current processes with a focus on identifying opportunities to help significantly enhance equipment pricing and utilization by taking the following core actions.

• Reevaluate fleet utilization and purchasing models for better solutions
• Identifying practices to improve cash flow
• Pull exception reports that identify unusual or unnecessary equipment costs
• Look for alternative fleet depreciation methods that give more precision over future gains and losses
• Identify ways to improve your existing key performance indicators (KPIs) or develop new ones

Evaluating Equipment Rates for Market Alignment

Setting competitive equipment rates is crucial for maintaining profitability and a competitive edge. SCORE! assists organizations in evaluating their current pricing structures to align with market conditions and industry standards.

• Market analysis: SCORE! begins with a thorough analysis of the local and regional market to determine prevailing equipment rates. By examining competitor pricing, demand trends, and economic factors, organizations can focus on establishing rates that are both competitive and profitable.
• Rate structure improvement: Organizations often face challenges in determining the appropriate rate structure—whether hourly, daily, or project-based. SCORE! helps define a pricing strategy that reflects the value of the equipment and services provided while also considering customer expectations and market dynamics.
• Transparent pricing models: Implementing transparent pricing models that clearly outline the costs associated with equipment usage can enhance customer trust and satisfaction. The results from a SCORE! engagement can help organizations to communicate pricing structures effectively to help clients understand the rationale behind equipment rates.

Key Potential Benefits

• Improved competitiveness through data-driven pricing strategies
• Enhanced profitability by aligning rates with market conditions
• Increased customer satisfaction through transparency and clarity in pricing

Enhancing Fleet Yard Profitability

The profitability of a fleet yard is heavily influenced by the total cost of ownership (TCO) associated with equipment and third-party contracts. Using SCORE! our professionals can provide a framework for organizations to assess these costs comprehensively, identifying opportunities for improvement and cost savings.

• Comprehensive TCO analysis: Our professionals will evaluate the components of TCO, including acquisition costs, maintenance expenses, operational costs, and disposal values. By understanding the full lifecycle costs of equipment, organizations can make informed decisions about their fleet.
• Assessment of third-party contracts: Many organizations rely on third-party contracts for equipment leasing or maintenance services. We’ll examine these contracts to identify unfavorable terms and conditions that may lead to higher costs or reduced service quality. This includes assessing whether contracts were competitively bid and if they align with industry standards.
• Competitive bidding practices: SCORE! results will help guide our professionals help organizations to adopt competitive bidding practices for third-party contracts. By soliciting multiple bids and negotiating terms, organizations can improve the value for their investments, reducing the risk of overpaying for services.

Key Potential Benefits

• Improved profitability through actionable strategies derived from a comprehensive analysis of total cost of ownership
• Insights to improve decision-making regarding equipment purchases and third-party contracts
• Insights to take action to reduce risk of unfavorable terms and conditions that can erode profit margins

Implementing Advanced Reporting Systems

Data-driven decision-making is essential for improving equipment pricing and utilization. With the results derived from a SCORE! engagement, our professionals can guide business owners to make strategic adjustments to their business plan. We focus on identifying opportunities to better utilize and improve your existing systems:

• Data visualization: Moss Adams advisors will help navigate the use of data visualization tools that transform complex data sets into easily digestible formats. By presenting key performance indicators (KPIs) and utilization metrics visually, organizations can quickly identify trends and areas for improvement.
• Software selection: Choosing the right software solutions is critical for effective reporting and data management. Our analysis can assist organizations in evaluating and selecting software that aligns with their operational needs, ensuring that they have the tools necessary to track equipment utilization and performance effectively.
• Forecasting and predictive analytics: Implementing forecasting models allows organizations to anticipate future equipment needs and utilization patterns. We can help organizations develop predictive analytics capabilities that inform strategic planning and resource allocation, preparing for changing market conditions.

Key Potential Benefits

• Enhanced visibility into equipment performance and utilization through advanced reporting
• Improved decision-making capabilities driven by data insights

The SCORE! Process

A SCORE! engagement that showcases your organizational operations starts by evaluating key documents such as:

• Organizational structure charts
• Strategic planning
• Lease or construction agreements
• Policies and procedures
• Current equipment inventory
• Equipment pricing strategy
• Maintenance and repair records
• Equipment utilization history
• Third-party contracts
• Financial statements
• Employee training and development programs
• KPIs

Preparing these items will position your organization to demonstrate its commitment to operational excellence and facilitate a productive SCORE! engagement.

A SCORE! engagement culminates in a meeting between you and your senior management to discuss the findings. You’ll receive a written report of identified findings categorized as high or low risk to help your leadership prioritize resolutions and corresponding recommendations that can be implemented by your company.

SCORE! reports are designed to translate system challenges into easily understandable potential solutions that help address problems that are unique to your organization. It’s also a cost-effective method for providing the results companies most desire.

We’re Here to Help

If you would like to learn more about a SCORE! engagement and how it could benefit your company, please contact your Moss Adams professional.

Additional Resources

• Heavy Equipment Practice
• Processes & Internal Controls Services