Managing Director: "Dave, we need you to reduce transport costs by 20%"

Dave: "No problem boss, I'm on it."

Have you ever been in Dave's position? I'm sure most of you know where his first port of call will be his carrier's head office, with a list of delivery failures and demand for a big fat rate decrease!

Has Dave considered the impact of what he's doing and whether this is the easiest way to achieve dramatic savings?

Well, I guess you would hope he could consult his management reports to see where his deliveries are going, how many pallets per vehicle are leaving the door and how production is affecting his overall costs?

Oh wait, Dave only receives very basic reports from his incumbent carrier. If he wants information like that, he's going to have to pull resource from an already over stretched team.

No chance of that happening.

So what's he going to do?

Well, have you ever considered the following?

10 deliveries leave the door half full for £100.

A 10% rate reduction is going to improve his costs by £100. This rate reduction might be granted, but if you think the carrier is going to accept that reduction without clawing it back some how, you're greatly mistaken. Surcharges and special transport costs can be very cleverly worked out.

So how could Dave approach this differently?

Well how about addressing the one issue that's within your control.

Vehicle utilisation

Why not take those ten deliveries and turn them into 5, pay 5 additional drop charges of £25 and save yourself £375 without even including the rate reduction.

37.5% sounds a lot better than 10%, and it's a lot easier to achieve with a little know how.

Obviously it's not quite as black and white as that, but if you let the experts show you how, impressive, sustainable savings are possible!

If you would like 3t to help unlock these savings, why not get in contact today?