With the strong year-on-year growth within the transport industry, all of the market players are facing more and more challenges on a day-to-day basis, and smaller companies are often those who suffer the most from it.
Lack of resources, nonstop competition with bigger adversaries and small budgets make them balance at the edge each and every day. In this blog, we’ve taken a look at the market and wanted to bring you some of the quick and easy options small truck companies use to cut costs without losing profitability and capacity.
1) Firstly, companies should scrupulously study the whole market, carefully analyze all possible inputs, outputs and build strategically proper entry business plan to make confident first steps on the way to the stable, profitable future.
2) Obviously, company should be well-informed about prices and know how to calculate them long before entering the market. Wisely allocated finances at the early stages will prevent expenses from snowballing over time.
3) Depreciation is the largest expense of the trucking business. That’s why a state of your vehicles is the number one priority. Regular preventive maintenance is much cheaper and much more effective than delayed repairs.
4) Effectively planned routs may noticeably cut costs of every trucking company either small or big. Progressive telematic systems with routing, scheduling optimization, data on fuel and toll consumption will not only reduce transport costs but, furthermore will increase efficiency and improve customer service.
5) According to the popular wisdom, minor tweaks can reap major dividends. That’s why trucking companies shouldn’t underestimate and consider using freight exchanges and load optimization as well as combining deliveries.
6) As we already mentioned, little gains make heavy purses. That’s why trucking companies should look out for the savings opportunities and use the tax refunds if they got sufficient volume of invoices.
7) Another aspect that is worth mentioning - insurance. A wisely chosen insurance company with relevant price, that suits all your needs, may ease life and remarkably decrease expenses.
8) Last but not least - picking suitable and advantageous payment solution is almost a half of the success in the trucking business because it helps to save money on fuel and tolls. Eurowag, for instance, is providing to its clients' full access to all possible toll discounts all over Europe. Fuel is the second biggest expense in trucking business (after depreciation), that’s why even very insignificant price difference, may make a huge distinction afterward.