Are your delivery costs fluctuating? Are you looking for ways to reduce the costs associated with your deliveries? Many people do not understand how various metrics affect the total amount they incur while making deliveries. This article discusses some metrics that you should track so that you can try to reduce your total transportation costs.
Unit Transport Costs
It is wise to get statistics about how much you have been spending to transport each unit of a product during every year. Your emphasis should then be directed towards reducing the cost in each subsequent year so that your competitiveness can be assured. For example, you can upgrade to bigger trucks so that the transport costs are shared between more units. In this way, the cost of transporting each unit can go down.
Maintenance and Repair Costs
You should also watch closely how much you spend to maintain and repair your fleet of trucks. Maintenance and repair costs can be reduced in several ways. For example, you can procure newer trucks that will not break down as frequently as the current aging fleet does. The savings that you make when you buy fewer replacement parts can justify the capital outlay that went to buying those new tracks. Make sure that you find ways to reduce the repair and maintenance bill each year without compromising quality.
Make sure that you maintain records about the timeliness of your fleet in terms of picking up consignments. Any reasons for delays should be documented so that remedial measures can be planned when you are auditing your systems at the end of each year. Make sure that your statistics show an improvement in timely pickups in each subsequent year.
How often do your trucks move without carrying any cargo? Such "dead miles" can erode your profits because the trucks will be undergoing wear and tear in addition to consuming fuel. Drivers are also paid for those miles that they travel even when they aren't transporting any merchandise that will generate revenue. Minimise dead miles by planning truck routes carefully. For example, a truck that goes to deliver products to a client can visit a supplier and return with raw materials for manufacturing processes. This kind of planning will result in maximum utilisation of your fleet.
Ultimately, it is the continuous improvement that you register on each metric that will enable you to reduce your overall transportation costs. Reach out to companies like Silver Top Taxis for more information.Share