Kenergy - Page 2 - Case Studies – Specialized Equipment - Transportation Solutions

Under New Management

In 2005, under new company leadership, Kenergy began to look for new ways to control costs. Soon after, it became apparent that improvements in fleet maintenance had the potential to save the co-op a significant amount of money.

In particular, preventive maintenance surfaced as an area that could be improved. A preventive maintenance schedule had been established, but not successfully executed. Missed preventive maintenance turned into greater mechanical problems that Kenergy’s technicians were not trained to handle. This led to increased costs.

Another area identified for improvement was field maintenance. In addition to technicians working at Kenergy’s two shop facilities, they also responded to emergencies in the field, and maintained the fleet’s stationary stock of motors and generators. Unscheduled calls to the field were disruptive to the established preventive maintenance schedule.

Kenergy’s new CEO was open to the idea of outsourcing fleet maintenance. The task was to find a company that could effectively maintain a utility fleet and function in the co-op world. By word-of-mouth, Kenergy handpicked a number of companies for the selection process.

In the course of the proposal review, Penske and one other company emerged with the potential to improve fleet maintenance. The base costs to implement on-site fleet maintenance were comparable. However, Penske separated itself with its ability to leverage its purchasing power and willingness to accept responsibility for all the equipment in the fleet — not just the rolling stock.

"With Penske, I have a clear, objective third party working on my behalf. It’s a relationship I don’t have to worry about and that makes my job easier."
Doug Hoyt, Director of Fleet Management, Vegetation Management and Contract Negotiations – Kenergy, Henderson, Kentucky

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Under New Management