Many people decide to become fleet managers so they no longer have to have a superior watching over their shoulder. Being your own boss can be exciting, but can be very stressful. Many market trends point toward the trucking industry not being profitable, but any industry can be hard to make money in if your company is mismanaged. As a fleet manager, you should aim to treat your truckers with respect as well as create a livable wage for yourself. Here are some ways to make your trucking company more profitable according to Flint MI Semi Tire Repair experts.
Cost Per Mile
The first thing you should get to know as a fleet manager is your cost per mile. Your cost per mile should consist of both your fixed and variable costs. You should aim to keep your cost per mile as low as possible without being unethical. A couple of different ways to reduce your cost per mile is by taking ongoing maintenance seriously and careful route planning.
Rate Per Mile
The most obvious way to counteract your low margins is to raise your price. You should not only know your cost per mile but the rate of return per mile as well. Your rate per mile should allow you to maximize profitability which may require a lot of forecasting and research. You can raise your rate per mile by simply charging your clients more if possible. If not, you can look into hauling more valuable loads or decreasing the length of your trips if possible.
Unloaded Mileage
This is something to keep in mind for those running a commercial dump truck service as it is most definitely an ever-present factor. Any time spent driving an empty trailer is money being thrown out the window. Not only is it money being thrown out the window, but it is a waste of time for your truck driver. You should have an idea of how much cost is spent on miles that are related to transporting the vehicle rather than a load. You want to minimize unloaded mileage as best as possible while increasing loaded mileage. Be willing to do backhauls and match routes based on demand.
Reduce Loading Times
No fleet manager or trucker wants to spend time stuck at a loading dock or pick-up location longer than they have to. Things do happen that may cause delays which is understandable, but it is important to know who is consistently late on their meetups and consider if it is still worth the time that is being lost. A few ways to combat this are by charging fees for late exchanges and avoid with clients that have bad track records with wait times. The use of a Commercial Industrial trailer can also reduce loading times and can improve efficiency.
