As winter settles in, its chilly grip is accompanied by rising costs affecting various industries, including the trucking sector. The New Zealand Trucking Association, a non-profit trade association, is a steadfast supporter of trucking operators, helping them navigate the challenges of running safe and sustainable businesses. Within the transport industry, businesses encounter numerous hurdles, such as driver shortages and relentless cost increases, while operating on slim profit margins and complying with regulatory requirements.
One challenge faced by transport businesses is how to determine appropriate rates for contracts. Incorrectly setting rates can have detrimental consequences, potentially locking businesses into unprofitable agreements. However, New Zealand Trucking Association members gain access to the Transport Cost Model, a valuable resource provided free of charge. This model assists operators in determining the rates necessary to ensure profitability for their businesses. With the association functioning as a reliable partner, companies can seek advice and information without worrying about per-minute charges. If you’re not a member, you are encouraged to join today, with membership options starting as low as $33 a month.
When a trucking company faces a slow market coupled with increasing interest rates and inflation, it becomes critical to trim costs to maintain profitability and financial stability.
Review your operation efficiency by comprehensively evaluating your company’s operational efficiency. Identify areas where processes can be streamlined, wastage reduced and productivity enhanced. This may involve optimising routes, improving load planning, implementing better inventory management systems and enhancing driver scheduling to minimise idle time and maximise productivity.
Fuel costs are a significant expense for trucking companies. Implement measures to improve fuel efficiency, such as driver training programmes on fuel-efficient driving techniques, regular vehicle maintenance to ensure optimal performance and the use of advanced technologies like telematics to monitor and optimise fuel consumption. Encourage drivers to adopt practices like reducing idling time and maintaining proper tyre inflation. Enquire about the association’s fuel scheme – there could be significant savings on fuel.
Review and negotiate contracts with your vendors, maintenance providers and equipment leasing companies. Explore opportunities for volume discounts, favourable payment terms, and lower service charges. Leveraging your company’s purchasing power is crucial to secure the best possible rates and terms.
Ensure that your trucking fleet is effectively utilised to minimise costs. Regularly assess the number of vehicles needed to meet current demand and consider downsizing or temporarily leasing additional vehicles during peak periods. Idle or underutilised trucks incur unnecessary costs, such as maintenance, insurance and depreciation. Proper fleet management and monitoring can help maximise asset utilisation.
Invest in technology solutions that can help streamline operations and reduce costs. Fleet management software can provide real-time visibility into vehicle performance, optimise routing, and improve logistics planning. Implementing electronic monitoring ensures compliance with regulations while minimising paperwork. Utilise data analytics to identify areas for cost reduction and process improvement.
Regularly review your insurance policies to ensure appropriate coverage at competitive rates. Contact us to have our specialist commercial insurance advisor review your policies.
Consider adopting a proactive approach to vehicle maintenance to prevent breakdowns, costly repairs and potential accidents. Regularly inspect and maintain your fleet, including engine tune-ups, tire rotations and oil changes. Promptly addressing maintenance issues can extend the lifespan of your vehicles, reduce repair expenses and improve fuel efficiency.
Collaborate with suppliers, customers and intermediaries to optimise supply chain efficiency. Explore options for consolidated shipments, backhauls and strategic partnerships to minimise empty return trips. Efficient supply chain management reduces transportation costs As winter settles in, its chilly grip is accompanied by rising costs affecting various industries, including the trucking sector. The New Zealand Trucking Association, a non-profit trade association, is a steadfast supporter of trucking operators, helping them navigate the challenges of running safe and sustainable businesses. Within the transport industry, businesses encounter numerous hurdles, such as driver shortages and relentless cost increases, while operating on slim profit margins and complying with regulatory requirements.and enhances overall operational efficiency.
Make sure you look after yourself. It takes a resilient, special person to be in transport so feel proud of what you do. We are here to help, so feel free to contact us. Check out all the things we do to make the industry better at nztruckingassn.co.nz
