TCM: a complementary indicator to the TCO

While the TCO (Total Cost of Ownership) is important in determining the cost of use of an automobile fleet, the Total Cost of Mobility (TCM) allows for even greater management of the fleet. focuses on the cost of mobility generated by each employee. Explanations.

Well known companies, the TCO can determine the total cost of ownership of a vehicle or fleet. To better understand the distribution of fleet costs, this indicator is essential to optimize the management and costs generated by a fleet. However, it has one major disadvantage: that of not taking into account the mobility costs of employees. It is in this that the TCM, or total cost of mobility , is complementary to the TCO.

TCO and TCM: what are the differences?

Where the TCO is concerned with all the costs incurred by a vehicle (rental, fuel, insurance, services, maintenance, etc.), the TCM focuses on one element: the cost of mobility. Not centered at the level of the single vehicle, this indicator focuses on each employee. It allows the manager to assess the cost of each member of the fleet when on the move. Another difference: the TCM is interested in all forms of mobility, not just cars. It allows to estimate if a displacement is more economically viable if it is realized with a vehicle of the company, a taxi or even by train.

How to combine TCO and TCM for optimized fleet management?

At present, few companies associate TCO and TCM calculations in their fleet management. While the TCO is still today the monopoly of park managers, the TCMis mainly used by travel actors. However, both of these indicators are worth using together. Why ? Simply because the most important thing is not to optimize the management of vehicles, but to reduce the cost of employee travel. For companies, the prospects for improvement are numerous. Better rotation of vehicles, promotion of responsible driving, introduction of carsharing, reduction of mobility costs or even reduction of fuel consumption: the benefits are at least plural.

Author: admin