Rightsizing a Fleet for 18% Reduction in TCO

Rightsizing a Fleet for 18% Reduction in TCO

Rightsizing a Fleet for 18% Reduction in TCO

A lack of strategic, standardized purchasing led to misalignment across a fleet of 4,000 vehicles—with heavy-duty vehicles driven on light-duty routes, big vans used for small jobs, and underutilized assets sitting idle. JAI successfully rightsized the fleet— eliminating mismatched and improperly fitted vehicles, and standardizing the optimal mix for each job. The result: an 18% decrease in Total Cost of Ownership, improved reliability, and optimized utilization.

The Challenge

Trigger

Rising fleet cost and poor utilization.

Status Quo

Operators purchased vehicles based on historical precedent rather than a proactive, strategic approach.

and Environment

Complexity

The multi-region fleet comprised about 4,000 mixed vehicles for varying job types.

Complexity

The multi-region fleet comprised about 4,000 mixed vehicles for varying job types.

Pressure

TCO—including maintenance, depreciation, outfitting, and lifecycle management—was increasing disproportionally compared to revenue and profitability.

The JAI Approach

Pragmatic

Built a utilization and duty-cycle profile for each role, route, and region.

Tactical and Strategic

Identified over-spec’d and underutilized units and defined an optimal fleet mix by job type.

Curious

Designed a rightsizing plan: de-fleet, redeploy, or replace with properly spec’d vehicles.

The Turning Point

JAI created a dashboard showing TCO by vehicle type and job—and proving that the existing mix left money on the table.

Results

Reduced TCO

The PortCo saw an 18% reduction in total cost of ownership.

Operational Efficiency

Strategic selection of fit-for-purpose vehicles helped boost utilization and create efficiencies that improved vehicle reliability and uptime.

Behavior Shift

Fleet buyers’ decision-making process started with “What is the job?” rather than “What did we buy last time?”

Lasting Impact

More than a one-time cost-cutting or cleanup, the long-term, strategic approach and decision-making process became part of capital planning and annual budgeting.

JAI Partners delivers investor-grade operational expertise that drives transformative structural value in private-equity-backed companies. Our clients measure results in EBITDA impact, not tactical savings. We embed deeply, leverage proprietary AI for speed and scale, and create post-close value in days and weeks—not months and years.

JAI Partners delivers investor-grade operational expertise that drives transformative structural value in private-equity-backed companies. Our clients measure results in EBITDA impact, not tactical savings. We embed deeply, leverage proprietary AI for speed and scale, and create post-close value in days and weeks—not months and years.

JAI Partners delivers investor-grade operational expertise that drives transformative structural value in private-equity-backed companies. Our clients measure results in EBITDA impact, not tactical savings. We embed deeply, leverage proprietary AI for speed and scale, and create post-close value in days and weeks—not months and years.

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