THE best companies are all built on a similar business model – maximize your investments by getting the most out of your available resources.
Not all companies have the same opportunities and earning potentials; you need to accurately identify the strengths and weaknesses of your specific business and use them to your advantage. Here are five smart ways to streamline the transportation costs of your business:
Optimise available floor space
Almost all warehouse layouts initially leave a lot to be desired. Your teams need to identify and eliminate areas of space that are not utilized to their full capacity. Improve the use of vertical space but increasing the storage density of bins and shelving racks – this will allow for more storage space without taking up more floor space. You need to ensure that your company has policies and procedures in place that efficiently utilize assets and inventory – those will help to bring down your transport costs through better planning.
When transporting goods over a long distance, storing those goods closer to your customers can drastically reduce your transportation costs. The cost of warehousing goods doesn’t come cheap though, you need to make sure that utilizing a warehousing strategy will pay off in the end. Rental, utility and security costs can quickly mount up, so you need to be sure that these costs will be offset by the money you will save on not transporting those loads and financing more vehicles.
Get proper insurance
Business insurance should be a non-negotiable thing. All businesses need the peace of mind that only an insurance policy can offer. Fleet insurance can help you to cut costs by saving you from having to replace a vehicle if it is involved in an accident. Uninsured fleet vehicles are a hazard on the road and a poor business decision. Find out what fleet insurance your business requires and then shop around for the best deal.
Your business needs to learn to get through rough times and celebrate the good times. You won’t be able to do this if you are stubbornly stuck in your ways; you need to have an open mind and be adaptable to your situation. Being an adaptable person doesn’t mean that your business operates without a plan; it is quite the contrary – all it means is that you have workable backup plans, and you consider all of your options before deciding on one.
Employee incentive programmes
Employee incentive programs might sound like an expense right now, and don’t get me wrong – they can be, but they should be a necessary expense. Employees who feel valued will work harder and longer than disgruntled ones. Invest in a fantastic incentive program for your staff, particularly for your maintenance technicians and drivers, because these team members form the backbone of any transport company, and they deserve to feel appreciated. These programs ultimately save you money by ensuring that you get the most out of your employees.