Cost management: How you can reduce transport costs
Regardless of the sector of activity in which you operate, more than likely cost management is a topic of paramount importance at every meeting. Due to over 20 years’ experience in the field of intermediation of road freight transport services, as well as transshipment of goods, we have found the right strategies when it comes to managing transport costs. You can save extra money, regardless of the type of road transport of goods, applying the following tips.
1. SOLUTIONS FOR REDUCING TRANSPORT COSTS
Due to increasing in the price of fuel and in the minimum wage, carries` costs have significantly risen recently. Regardless of the reason, the transport companies start to no longer be able to compete exclusively on the basis of the freight transport price. Here are some cost-effective solutions:
1.1 SYNCHRONIZED PLANNING
How can the cost of transport services be reduced through synchronized planning? In principle, there are two solutions:
- Choosing the appropriate means of transport;
- Choosing an optimal transport route.
In this case, the beneficiary will no longer have to establish the actual route, because the carrier will propose the optimal routes and means of transport according to his transport needs. Thus, the beneficiary only has to indicate the details related to the destination of the transported goods.
The carrier can find the route efficient both in terms of costs and in terms of transport duration, by calculating the distance, avoiding areas that impose road restrictions, anticipating and bypassing crowded sections of road and calculating tolls in advance.Depending on the volume of goods to be transported, you can opt for the full transport (FTL) or groupage (LTL) mode. An FTL (Full Truck Load) is a transport in which a truck is transporting one load only for a single client, and this load fills the entire truck.An LTL (Less Than Truckload), also known as Groupage, is a partial load in a truck. Thus a single truck can carry on many goods from different clients.
1.2 ADAPTATION OF DRIVING STYLE AND FUEL ECONOMY
Its common knowedge that driving style can influence transportation costs.Training drivers to adopt a preventive and environmentally friendly driving style has a significant impact on both the company’s costs and environmental health.
One solution to reduce fuel consumption is to monitor it. Digitization is a key element that contributes to the evaluation of the driver’s driving style and its impact on fuel consumption.
1.3 REGULAR MAINTENANCE OF TRUCKS
Regular overhauls and maintenance are essential, and their compliance will guarantee you efficiency, safety and more reliable vehicles and lower fuel consumption. Also, you will not risk interrupting flow of orders. Remember, the safety of your drivers, of all traffic participants, but also of the goods you transport is an element of trust and quality regarding the services you offer. Tire wear and neglect to clean dusty particulate filters are just a few examples that lead to high fuel consumption.
Monitoring the fleet and driver behavior with the help of GPS systems will also help you reduce costs.
Preventive maintenance inspections should cover the following issues:
- repairs and liquids’ replacement;
- Replacing worn parts;
- Verification of the inspection interval and verification of the mileage.
If you do not want inconvenience on the road, it is advisable to avoid poor quality parts or repairs made by unqualified people!
1.4 MAINTAINING A TIGHT BUDGET
In order to maintain a tight budget, efficient road transport management is needed, especially in terms of expenditure and profit. Do not hesitate to analyze each transport, from the delivery time to the cost of each trip.Constant monitoring of costs can help you have a real perspective on the budget and make optimal decisions regarding the planning, organization and conduct of transport.
Apply all these solutions and you will discover how quickly you start saving money!