4 ways that transport businesses can save money

Reading Time: 3 mins

Pressure from a competitive market, volatile fuel prices, and fluctuating profit margins: these are just a few pitfalls of running a successful transport company in today’s day and age.

To better defend against draining constraints, companies must develop new and dynamic strategies to keep costs low and profits high.

Here we have listed four major tips to ensure transport businesses can optimise their practices and stay ahead of the game.


1. Monitor the fuel you use

Pit stops are an inescapable reality of running any vehicle and often come with a hefty bill.

The rate a tank requires refilling can be greatly reduced, simply by making a few simple changes to your driving technique.

Drivers should consider fuel efficiency when out on the roads. This includes keeping the vehicle in the highest gear the speed limit pertains and maintaining a sense of anticipation to ensure the vehicle keeps momentum along the road.

Vehicle maintenance is also key, so ensure that the vehicle’s tread and tire pressure meet legal standards at all times. This prevents drag on the vehicle, requiring less fuel to make it go.

By using telematics, you will be able to easily monitor the fuel performance of all vehicles in your fleet.

Vehicle tracking provides full visibility of vehicle data and is a useful saving tool. It can be especially practical in identifying where fuel efficiency training may be of benefit to employees.

You can compare telematics using iCompario to find the best package for you.


2. Plan your route ahead of time

Picking the most efficient route ahead of time is an important practice to consider and it can also be a real gold mine.

Using satellite navigation or other route planning software, you can map your course to avoid previously unexpected traffic jams and pesky toll charges.

This allows you to ensure drivers are always on the move.

When executed in the right way, this will result in extra deliveries throughout the day and eliminate time spent on gaps between deliveries.


3. Consolidate your shipments into one

It can be a big money-saving technique to consolidate shipments into large halls.

The last thing a transport company should want to see is multiple separate deliveries all heading to the same place.

Instead, where possible, companies should look to combine small deliveries into one.

This will allow other drivers to continue along with deliveries elsewhere, either clearing or preventing a backlog, ensuring a continued revenue stream.

Additionally, consolidated shipping is a favoured practice of many courier companies as there are big savings to be made. Shipping many separate parcels is vastly more expensive than in bulk as the minimum shipping charge no longer applies.

This practice often benefits all members of the supply chain, from distributor to client.


4. Choosing the right exchange fees

If you are transporting shipments overseas it is important to find a good exchange rate for contracts and employee fees.

A poor exchange rate can really punish a business, whereas a good one can yield real saving benefits.

It can be really difficult to find a beneficial exchange rate, but it is worth the effort in the end.

Some firms plan existing loan agreements in foreign currency that allow for regular controlled payments. This cuts back on sudden admin fees and can be controlled via an existing account.

From driving efficiently on local roads to transporting goods around the world, there is one overarching theme to these thrifty must do’s.

To maintain a successful, unwasteful transport company in today’s climate, planning ahead with logic and monitoring every aspect of the company is the key to everything.

The post 4 ways that transport businesses can save money appeared first on MoneyMagpie.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *