Any business that depends on deliveries has a responsibility to look more closely at those deliveries to ensure that they’re running as cost-effectively as possible.
Here, we’re going to look at some of the most common sources of revenue loss over time when it comes to your deliveries, and what you can do about it.
Energy efficiency
One of the most frequently recurring costs for any businesses running deliveries is how much they have to spend on fuel.
You can make efforts such as choosing smoother routes and improving driving habits, such as reducing hard acceleration, in order to spend less on fuel or use fuel cards to get a better deal.
However, some businesses are starting to rely on electric and hybrid vehicles to take care of certain deliveries. Right now, they may not be suited for the longest of journeys. However, if you business mostly works on local deliveries, they may be a real solution.
Product damage
Items get damaged in transit. It’s a simple fact of life and a source of loss you may have to occasionally get used to. However, you should be doing everything in your power to reduce the chances of that happening.
In most cases, this means that you need the equipment to secure and package goods effectively. Polystyrene packaging is perhaps the most cost-effective packing material you can use.
However, for larger items, you should also consider using gear that can help secure it to the bed of any vehicle or truck, such as straps and braces.
Route profitability
You have to consider how much money you’re spending on each route and pit it against how much you stand to make from the journey. The costs are often measured in wear and tear and fuel consumption.
Profitability should be measured in how quickly you can complete journeys safely, while also making more deliveries where possible. Telematic GPS services can help you get a better idea of what routes your drivers are taking and how they are handling them.
This way you may be able to better identify changes they can make to make the whole journey a lot more efficient. You can even communicate this to them on the road, especially in cases of potential traffic incidents ahead of them that they can avoid.
Vehicle maintenance costs
Like all physical equipment, vehicles suffer wear and tear over time. If not properly addressed, these can be the deepest costs of them all. Ensure that your drivers are being taught habits that help preserve the condition of the vehicles that they are in.
More importantly, put in place a preventative maintenance schedule that sees every vehicle in your fleet being given the proper care that it deserves.
Your deliveries may empower your business to make money, but their costs can grow and grow unchecked if you don’t take the time to streamline and systematize the processes of actually making deliveries. Hopefully, the sources of loss mentioned above can be easily identified and dealt with in your business.
