The value of a charge-back system as a cost management tool is only as good as the soundness of its rate design and billing process. This session draws on 25 years of consulting experience to review the do’s and dont’s of charge-back system design and use. This presentation covers: 1) the critical importance of cost transparency to cost management and the ways in which cost charge-back systems increase this transparency; 2) the pros and cons of different charge-back rate structures, such as time-based, usage-based, and service-based rates; and 3) the key steps required to build a fleet operating cost model that calculates the unit costs of fleet-related goods and services — a gallon of fuel, an hour of technician labor, an hour of front-end loader usage, etc.

Download PDF Here: You_Cant_Manage_Costs_You_Cant_See_NAFA_2017.pdf