Laura May is Digital Editor at Just Another Magazine. We write about beauty, fashion, lifestyle, relationships, travel and trends.
Saving money is something that’s on the agenda of every company and transport businesses are no exception.
These organisations have significant overheads such as vehicle cost, maintenance, and fueling. Managing these properly can be the difference between turning a profit and drifting towards administration.
We’ve highlighted four great money saving tips from transport, from those that cost nothing to options that require you to speculate to accumulate.
Recommended reading: Advantages of a Career in Transport and Flight Nursing
Switch to bicycles to reduce fuel consumption
Fuel is one of the most significant costs that any transport business has to cover.
You need gas to power your motorcycles, cars, and trucks, so you’re paying for fuel every time you use them. Switching to bicycles means that you don’t have to pay for gas when you transport your goods.
U.S. companies spent $1.5 trillion on shipping costs in 2017 alone and a significant part of this was rises in fuel costs.
Employing bicycles where you can not only means that you don’t have to pay for gas, it also means that you can protect your business from rising costs. This makes it easier to manage your cash flow and to keep your company on the road.
Now, it’s clear that you won’t be able to ditch your vehicles completely. However, what you can do is review where it’s appropriate to move to bicycles.
A great way of doing this is to establish how much weight your drivers can carry in a rucksack (or bag, like UberEats) and then introduce bicycles for deliveries of this size within a 5 mile radius.
Using bicycles might not only save you money, it could make you money. This is because you’ll be able to present yourself as a greener transport business, so you’ll be more attractive to customers that value sustainability.
Cut the cost of vehicle maintenance with leasing
Your vehicles need to be road worthy to transport your goods.
The problem is that this costs you money. Money spent on services. Money spent on repairs. Money spent on insurance. I could go on but you get the idea and it’s not one that should make any transport business owner happy.
Leasing may not be a popular idea but it’s one that could save you cash. Why? Because you transfer the cost of maintaining your vehicles to a third party company.
But it’s not simply that you save money by doing this.
Ask yourself how many times jobs have been delayed because your vehicles have experienced issues. While you can’t stop unforeseen issues with your automobiles, you can’t argue with the fact that the older your vehicles are the more likely they are to break down.
Changing to leasing (where sensible) means that you’ll have newer, more reliable vehicles.
There are lots of leasing companies that your company can use. The key is finding the one that offers the right benefits for your company. You can find a list of the top fleet service providers here. The article explains how large their fleets are, along with providing links to a range of fleet management resources.
Check it out now to find out which one works best for you.
Employ route planning to make journeys more efficient
All your trips have a destination and taking the shortest routes saves you money on fuel.
Planning your journeys might only save you a few miles each time. However, consider this, every time you travel even a single mile more than you have to you’re wasting money.
Just imagine now how many journeys your drivers take each year. Now add up how many miles that covers and reduce a mile from all these journeys. That’s a significant saving on fuel.
There are many simple ways to use route planning.
The obvious example is Google Maps. It’s free, has an enormous coverage, and comes with an app that allows your drivers to refer to the route while they’re on the road.
This might all seem obvious to you. But how many times do your drivers simply lean on satnav devices while they’re already on route? The point is that it’s often too late to take the right route when you’re on the road, as plenty of wrong turns could have already been made.
So, spend just a little bit of time working out the best journey before hitting the road and you could make lots of small fuel reductions that add up to a huge saving.
Use fuel cards to help reduce your transport costs
Fuel is one the non-negotiable costs of running a vehicle – you can’t drive without gas.
Fuel cards can help you mitigate this and make savings by giving you access to cheaper gas, through discounts that are offered to business owners that use them.
Saving a few cents every time you fill up your vehicles is an obvious way that using fuel cards can save you money. But it’s not the only one.
One of the key advantages of using this method to pay for your gas is that it cuts down on your admin costs. This is because your fuel expenses are recorded via an electronic invoice.
This might not sound like much but it means that your fuel receipts don’t need to be transferred from paper records to electronic ones, something that an administrator (perhaps even you) needs to do and a task that costs money each time this happens.
There are plenty of fuel cards for small businesses. What’s important is that you find the right one for your business. You can find an assessment of the top fuel card providers here. It explains their strengths, along with highlighting some of the other cost-saving benefits of using fuel cards.
Check it out now to find out what the best option is for your business.
Switching to bicycles, introducing leasing, planning out your routes, and using fuel cards are all great ways for transport businesses to save money.
They range in how much money you have to spend on them, from nothing to bespoke fees. However, sometimes you need to speculate to accumulate and by spending your money wisely you can make significant savings by making your business more efficient.
So, start with the cheapest options and then work you way up to the fee paying options. Once you’ve implemented all of these tips you’ll find that your business isn’t only saving money, but that it’s making more money.