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Opportunity Calculator User Manual

Welcome to the Opportunity Calculator!​

This tool is designed to help you maximize the utilization of your vehicles and assess potential revenue based on their performance over specified periods. By using this calculator, you can gain insights into your current usage patterns, identify areas for improvement, and understand potential revenue gains or losses.

Key Features​

1. Assessing Vehicle Utilization​

Utilization Rate Calculation:​

The calculator evaluates how effectively each vehicle in your fleet is being used. It takes into account the operational hours (time the vehicle is actively being used) and availability (time the vehicle is available for use but not necessarily in use).

Identifying Utilization Patterns:​

By analyzing the utilization rates, the tool helps you identify which vehicles are underutilized (not used enough) or over utilized (used excessively). This information is crucial for optimizing your fleet operations and ensuring balanced usage across all vehicles.

2. Calculating Potential Revenue​

Revenue Estimation:​

The calculator estimates the potential revenue you could earn based on the performance metrics of your vehicles. This includes factors like the number of trips, distance traveled, and time spent on the road.

Comparative Analysis:​

It provides a comparative analysis of your potential revenue against your current earnings. This helps you understand the financial impact of your current vehicle usage and highlights opportunities for increasing revenue.

3. Revenue Loss and Gains Analysis​

Current Usage Insights:​

The tool gives you detailed insights into the revenue loss or gains associated with your current vehicle usage patterns. It shows you how much more revenue you could generate by improving utilization or how much revenue you might be losing due to inefficiencies.

Opportunity Identification:​

By identifying these opportunities, you can make informed decisions to optimize your fleet operations, reduce costs, and increase profitability.

How to Use the Opportunity Calculator​

The opportunity calculator will give you insights based on your vehicle utilization you have made for the selected duration. The calculator offers you the opportunity to check and optimize your vehicle utilization.

  1. Input Vehicle Data: Enter the relevant data for each vehicle in your fleet.Revenue per mi, Optimum Utilization (mi).
  2. Review Utilization Rates: Once the data is entered, the calculator will display the utilization rates for each vehicle. You can easily see which vehicles are underutilized or overutilized.
  3. Analyze Potential Revenue: The calculator will estimate the potential revenue for each vehicle based on its performance metrics. You can compare this potential revenue with your current earnings to identify gaps and opportunities.
  4. Assess Revenue Loss and Gains: The tool will highlight the revenue loss or gains associated with your current usage patterns. This analysis helps you understand the financial impact of optimizing vehicle utilization.
  5. Make Informed Decisions: Use the insights provided by the Opportunity Calculator to make strategic decisions about your fleet operations. Implement changes to improve utilization, reduce costs, and increase revenue.

Formulae and Scenarios​

What goes behind the calculations you see:​

Potential Revenue (Loss or Gain) = Σ((Optimal Usage - Actual Usage) × Revenue per Kilometer × Count of Vehicles × Days)

Where:

  • Optimal Usage: Ideal distance a vehicle should run per day.
  • Actual Usage: Actual distance a vehicle is running per day.
  • Revenue per Kilometer: Revenue earned per kilometer.
  • Count of Vehicles: Number of vehicles of each type.
  • Days: Number of days in the period.

Example Calculation with Multiple Vehicle Types (30 days)​

Let's assume the following optimal usage values and actual data for three types of vehicles over 30 days:

Given Data:​

  1. Large Vehicle

    • Optimal Usage: 200 km/day
    • Actual Usage: 135 km/day
    • Revenue per Kilometer: $1.0
    • Count: 2
    • Days: 30

  2. Medium Vehicle

    • Optimal Usage: 60 km/day
    • Actual Usage: 40.33 km/day (calculated from 5447 km over 30 days for 9 vehicles)
    • Revenue per Kilometer: $7.0
    • Count: 9
    • Days: 30

  3. Small Vehicle

    • Optimal Usage: 80 km/day
    • Actual Usage: 49 km/day
    • Revenue per Kilometer: $4.0
    • Count: 3
    • Days: 30

Calculation:​

  1. Large Vehicle

    • Difference in Usage = 200 - 135 = 65 km/day
    • Potential Revenue Loss = 65 × $1.0 × 2 × 30 = $3900

  2. Medium Vehicle

    • Difference in Usage = 60 - 40.33 = 19.67 km/day
    • Potential Revenue Loss = 19.67 × $7.0 × 9 × 30 = $37089.3

  3. Small Vehicle

    • Difference in Usage = 80 - 49 = 31 km/day
    • Potential Revenue Loss = 31 × $4.0 × 3 × 30 = $11160

Total Potential Revenue Loss: Total Potential Revenue Loss = $3900 + $37089.3 + $11160 = $52149.3

Summary:​

  • Large Vehicle: $3900