Less-than-truckload transportation makes up a great deal of the vehicles on the road delivering essential goods to where they need to be. Since the COVID-19 crises kicked in, supply chains all over the world have come to a standstill – but in most parts of the world, restrictions are being relaxed and we’re getting a little closer to business as usual.
Ways To Cut LTL Transportation Costs
But while the supply chain recovers, has your company?
The pandemic has hit companies hard; faced with a sudden ability to go into operation again, most companies are also faced with the additional choice of cutting costs in order to keep up and get back to work.
Here are a few great ways to cut LTL transportation costs as supply chains recover.
We’re going back to normal…almost
It’s almost time for companies to get back to normal. This includes supply chain companies, and it likely includes yours. Businesses have all been affected by the COVID-19 pandemic, and it means that while supply chains have kicked in, there are a lot of companies still trying to find their feet.
Some of the consequences of COVID have included lost business and foregone costs. Other companies might have even been forced to let some of their non-essential workforces go during this time. It leaves a lot of businesses starting while in the red.
Servicing & maintaining vehicles
Cutting costs doesn’t have to mean cutting into your workforce.
One of the first things useful to a supply chain company is servicing and maintaining their fleet. This might seem like an added expenditure that’s unnecessary at such a difficult time, but it can also earn its money back within just a few weeks – and having a well-maintained fleet ends up costing less in breakdowns and even in gas.
A fuller fleet
A fuller fleet helps.
It’s another element that might cost companies a little more to implement at a difficult time, but operating at full capacity could mean that you’re able to earn more. Don’t lose clients and long-term business because you’re short on drivers to handle the load. Almost always, there’s a way to implement a fuller fleet while making your money back at the same time.
Changing gas providers
Are you paying too much for gas?
It’s practically the blood of any supply chain company: Without it, they aren’t going anywhere. Businesses who want to slice costs should look at their gas budget first. Sometimes, changing gas providers, buying in larger amounts or taking advantage of fuel cards for discounted purchases can make a huge difference to your overall costs as a supply chain business.
Altering insurance plans
Gas isn’t the only expenditure that almost all supply chain companies share. One thing most supply chain companies can’t do without is insurance – and just like gas, it’s something that many companies out there might be paying too much for.
Assess your current insurance provider and plan if you realize that your overhead costs on insurance are too high. Altering your insurance plans could be one of the best ways to save.
Cutting bonuses & perks
If your company is large or successful enough to say that they can have end-of-year or performance bonuses, this is great – but it could also be one of the problems making your company fall short. Cutting bonuses and perks is one of the first ways to get a business out of a pinch when it has to be done fast. This doesn’t always mean removing these benefits but altering the amounts.
Do you have COVID-19 relief?
Many businesses have been negatively affected by COVID-19. This means that many banks have released some form of COVID-19 relief that could make things easier for businesses who claim from the fund. If you’re with a bank, check if they offer any type of relief options.
Where banks don’t offer it, some companies can turn to their local government for state assistance in other circumstances that could help to lift your business out of the disasters created by COVID-19. Usually, you’ll have to provide proof to the bank on how you have been affected. Hang on to all proof and financial statements of how you have been affected by the times.
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