In a world that seems to be getting smaller with each passing year, there has never been a greater need for fleet companies. We’re moving more stuff from one part of the country to another than ever before, and it has get there somewhere! However, while there’s plenty of opportunities for a fleet company to realize substantial profits, it’s far from guaranteed. Competition is fierce, and in order to find success, things have to be running smoothly and watertight. Below, we take a look at a few tips that’ll help you to do just that.
You’re running a fleet company, but it’ll be your staff that determines whether it’s a success or not. While some people take the approach of “it’s only driving,” this is far from the truth. A fleet company has to be professional, punctual, and well-organized — and, as such, any members of staff you hire also must possess those qualities. If you haven’t quite assembled a team that you’re fully content with, then look at improving your hiring process; there are always ways. Once onboard, ongoing training will also help get the most out of your employees.
You’ll want to ensure that you’ve invested in the best quality vehicles within your budget, because it’s your reliability that will have one of the biggest impacts on your success — and lower quality trucks just aren’t as reliable. However, even if you do have trucks that come recommended, you can’t expect them to run smoothly forever. When a machine is covering so many miles, there will always be issues. Make sure you’re working with a trusted mechanic to ensure that they’re always ready for a long haul journey.
You need to run a tight ship when you’re working in logistics. Everything needs to be well-coordinated, so that the products arrive at their destination when they’re expected. You also need to ensure that you’re not wasting money by using inefficient routes, and that your drivers are driving safely. While this can be difficult from afar, there is technology to help you. Install your fleet of vehicles with drive cams, and you’ll be able to track risky driving behavior, view footage of any incidents that occur, and manage fuel efficiency. It’s an essential piece of kit that’ll allow you to have better control of your business operations, even when it’s happening out there on the streets.
Beware of Cash Flow
There’s a lot of money to be made in logistics, but it’s always important to remember that these types of businesses are expensive to run. As such, it’s not uncommon for fleet companies to fall into cash-flow problems. You may do this by leasing your trucks, rather than buying them outright, or you could offer incentives to your customers to pay their invoices early (such as a 5% discount, for example). It’s generally best to have a professional bookkeeper handle your finances, since they can notify you when you may be heading for trouble before it happens.