Driving Costs Down: 3 Common Speed Bumps In Managing Business Transportation

Business

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Many types of businesses in various industries regularly rely on contracted transportation services or in-house transportation efforts. This may be to deliver products, to travel to customers’ locations to provide services and more. The costs associated with business transportation can be expensive, and you may be searching for effective ways to drive costs down so that your company can improve its bottom line.

Paying for Delivery Services Unnecessarily

If you do not currently own freight trucks, delivery vans or other similar types of vehicles, you may think that your own available option is to pay for delivery services. When you pay a third party, you are paying for all related overhead as well as for their built-in profit. An alternative is to invest in gently used freight trucks, vans or other vehicles and to complete the delivery services in-house. These are available at a fraction of the price of new vehicles, and they can perform the exact same task.

Paying too Much for Auto Insurance

If you already have an in-house fleet, you regularly pay auto insurance to comply with local driving laws and to reduce your financial risk associated with this type of activity. Some companies do not thoroughly or regularly compare commercial auto insurance rates. Rates can fluctuate regularly based on many factors, so it makes sense to request a few quotes today if you have not done so recently. Remember to look for discounts to save money. You can also adjust limits and deductibles to save even more money on your commercial auto insurance policy.

Disregarding Logistics

Logistics also plays a role in business transportation costs. Consider, for example, how you may be able to reduce overhead related to out-and-back trips by simply investing in a larger truck from a company like Arrow Truck Sales. With a larger truck, multiple trips could be consolidated into a single out-and-back trip. This could save time, reduce wear and tear on vehicles and more. Consulting with a third party logistics firm or even hiring in-house logistics support may help you to more quickly and easily identify money-saving opportunities. In fact, logistics professionals may be able to save you more money than their services costs.

Business transportation services can be expensive for many companies, but many businesses are paying much more for transportation expenses than necessary. A closer look at your current transportation methods and efforts is in order. Focus your attention on these critical areas to determine if you may be able to make some cost-saving improvements.