When a company’s core business is anything other than Transport, it is normal for that company to see the expense of transport as nothing but cost.
Regardless of what type of business you are running or managing, knowing your costs is imperative. Your transport cost for local deliveries are no different. Some businesses and carriers have agreements for pallets rates, others hourly rates and day rates.
When talking in general to business owners and managers about their transport needs i commonly hear them say things like "I don't care as long as it’s cheap" and "it’s a necessary evil that costs". This sort of comments tells me that business in general doesn't see much advantage to one transport company over another. Well I'm going to try and explain why that couldn't be more from the truth!!
What do you look for in a carrier when wanting to engage with a new company?
Is it cost? , Trust?
When thinking about cost savings in transport, do you automatically think……..….
- Reduce the hourly rate?
- Lower the pallet rate being paid?
- Obtain better cubic rates or conversions?