It’s an excellent time to be in the transportation business, for the simple reason that we’re moving more goods than ever before across the country and the globe. With so much action, it’s always possible to get a slice of the pie. However, there is an issue when it comes to transportation: it can be an expensive game to be in. Operational costs can be high. As such, it’s important to take steps that’ll maximise profits and keep cash-flow intact. We take a look at a few tried and tested methods below.
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Efficient Equipment
One of the biggest expenses for any transportation company is the equipment it needs to function at its best. Since the costs involved are so high, however, it’s important that you’re taking a thoughtful approach to your technology. To begin, this means figuring out what you should own, lease, or rent (on a short-term basis). It also involves not keeping hold of any technology that you no longer need or will soon be past its sell-by date; they should be sold in order to fund their replacement or boost your finances if a replacement isn’t needed. Finally, make sure that you’re keeping your equipment well-tuned — inefficient equipment will use more energy than efficient equipment, which will mean higher energy bills.
Review Operations
If you’re in the business of transporting goods, then you’re in charge of a complicated process that has many components, all of which cost you money. You’re spending money on your fuel; you need to maintain your vehicles; you need to deliver a high-quality level of service. To ensure that you’re doing all of these things well, you need to have some data and support. This is where fleet telematics can come in. It’ll provide you with a wealth of information that can help to refine your working processes, save money, and ultimately boost profits.
Improve the Safety
It’s just a fact of life that the longer a driver is on the road, then the greater the risk there is that they’ll be involved in an accident. When you have so many drivers out there, it’s akin to being on the road permanently — at one point or another, something’s going to happen. And when it does, this could mean an expensive bill. Make sure you’re fully training your drivers, and have a robust policy for when they’re on the roads (such as the number of hours they can drive, and so on). And while you can’t always prevent things from happening, you can make sure that you’re not blamed for an accident that wasn’t your fault by attaching a driver cam to the truck.
Offer More Options
Finally, think about the services you’re providing. It can be good practice to offer a range of services, so you can meet an interested party’s needs. You may also look at partnering with local companies on any popular routes, so that you’re not wasting money bringing the truck back to base when it’s not carrying a paying load.
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