Of all expenses faced by small businesses, transport costs are among the biggest. According to a recent study by Lloyd’s, transport costs were among the top three expenses faced by SMEs. In all, transportation comprises 20% of all small business expenses.
If you can find ways to reduce these expenditures, you can free up a considerable amount of cash. In this blog, we’ll share solutions to some of the most significant sources of transport-related spending.
Get Fuel Cards For Your Drivers
The cost of petrol is one of the biggest transport pain points facing small businesses. Whilst the price at the pump is out of your control, your driver’s usage of fuel is not. This is where fuel cards come in handy.
By issuing fuel cards to your drivers, you can save in several ways. First, your drivers will no longer have to collect receipts. These pieces of paper can get lost easily, and the ink on some fades quickly. With a fuel card, you can get reliable information on fuel spending that makes tax filing a breeze.
Second, you can compare/contrast usage of fuel by various employees. This way, you can track fuel costs per kilometre driven, which can help flag overly aggressive drivers.
When choosing fuel cards, some may be better suited to your situation than others. By comparison shopping on sites like icompario, you can find the best fuel card solution for your small business.
Get Fleet Management Software
These days, IoT (internet of things) solutions are finding their way into commercial vehicles. You can now use fleet management apps to zero in on practices that result in unnecessary transport costs. By installing these programs in your fleet, you can track GPS location, average speeds, idling time, and much more. This way, you can offer feedback to drivers that can result in less fuel usage.
Some programs also allow the reporting of maintenance issues by drivers. This way, you can address minor problems before they morph into more expensive issues.
Invest In Fuel-Efficient Vehicles
The older your fleet, the worse its fuel efficiency. This has nothing to do with the vehicle’s condition, but the fact that newer vehicles tend to perform better. Today, autos, trucks, vans, and other vehicles are about a third more efficient than they were in 2000.
Petrol vehicles don’t just burn fuel more efficiently – hybrids use electric power to boost that number even higher. And, electric vehicles, which charge quickly and cost much less than their fossil fuel counterparts, promise even more significant savings. With the rapid expansion of charging infrastructure in the UK/Europe, EVs may become an option for your business soon.
Keep A Regular Maintenance Schedule
The older your fleet gets, the more likely it is to break down. If you are using older vehicles to save money upfront, regular preventative maintenance is crucial.
Regularly rotated tyres can extend their lifespan. Replacing worn brakes on time saves an exorbitant rotor repair job later. Changing oil regularly prevents unnecessary stress to the engine. Should engine problems occur, these repairs can cost you over £1,000.
Take care of your fleet, and it will take care of your company’s profits (by not reducing them).
Transport Expenses Offer Loads Of Saving Opportunities
Vehicle ownership is an expensive endeavour. Fleet ownership repeats that experience multiple times over. By zeroing in on changeable transport costs, you can reduce their drain on y