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Initiative to Reduce the Cost of Being Off the Road Business
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PostPosted: 26 Aug 2019 10:56:57    Post subject:  Initiative to Reduce the Cost of Being Off the Road Business
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Initiative to Reduce the Cost of Being Off the Road Business Articles | July 29
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, 2016

According to new research, the freight industry loses thousands a year to vehicles being left off the road due to unforeseen maintenance.



RAC Business has recently published its research into the obstacles faced by professionals in the freight industry when attempting to co-ordinate the activities of a large fleet. According to this research, haulage firms frequently lose in excess of £7,000 every year due to broken down vehicles standing empty.


What Was the Research and What Did It Say?


The research involved an investigation of the activities of some 500 businesses of different sizes, and paid special attention to the obstacles overcome by fleet managers and other administrative personnel working within the freight industry. Of special note were the parts of the research focusing on losses due to breakdowns.


According to RAC Businessís results, 41% of logistics firms operating vehicles between 3.5 and 44 tons had to contend with idle vehicles (due to mechanical failure) two or more times every month. 43% of respondents said that a huge number (around a quarter) of mechanical failures that occur within their fleet were preventable, if only they had been noticed, discussed and dealt with earlier. 32% of respondents said that, as a result of breakdowns, their businesses faced losing as much as £3000 every day.


What Does This Mean for the Freight Industry?


These figures bring home just how damaging breakdowns can be to any firmís bottom line. Most shocking of all is the idea of these vehicles eating into their fleetís profit margins when just sitting in depots or garages. The best way to minimise these sorts of opportunity costs is simply to get breakdowns dealt with as quickly and efficiently as possible.


However, this isnít always as easy as it sounds: particularly in small businesses, mechanicsí fees can be a significant overhead. Even in larger firms, the larger number of vehicles means more breakdowns and therefore more fees. Whatís more, these costs are frequently unpredictable and hard to budget for: a fleet may run smoothly one year, then be plagued by breakdowns the next.


What Can We Do About It?


The RAC has recently started offering a subscription breakdown service, allowing for up to four breakdowns per vehicle each year. Therefore, apart from in extreme circumstances, a company with RAC breakdown cover will be paying a predictable, consistent cost every year, and in return its vehicles will all be seen to by the RAC as required. This system is likely to be attractive to large and small businesses alike - particularly those with smaller fleets - as it will allow fleet managers to take some of the unpredictability out of the maintenance budget. Thereís also the bonus of knowing that your vehicles are being looked after by one of the biggest names in the freight industry: the RAC.


Whether a subscription based cover service is right for you or not, thereís no doubt that good maintenance is key to keeping a smooth, efficient and profitable fleet on the road. As well as making provisions for breakdowns when they do happen, ensuring that all vehicles are regularly inspected and drivers are incentivised to report faults are big parts of keeping your overheads and opportunity costs as low as possible.

Not long ago, I traveled back east to Ohio and Chicago. While I was there, I was amazed that the friends I made along my journey seemed to have completely different observations of the state in which they lived.

For example, when I asked what the winters were like in their town, I got completely opposite answers from people, depending on where they originally lived. When I asked the question of a former Californian, she talked as if she'd landed in Siberia, recounting the snowfall and treacherous conditions meant for only the wildest of beasts. When I asked the same question of a native resident, he painted a beautiful picture of the changing seasons, each more spectacular than the last, and recounted wonderful memories of having the fortune to grow up in such a picturesque land.

What's the difference here?

Their perception dictated their experience.

It's like the old stories about a bank robbery. The event could take place in broad daylight, with 30 eyewitnesses, yet each gives a completely different account of what he or she saw happen. It's like when someone in your office or home says something to you, and you receive a different message than the person intended.

Why does this happen?

I believe it's because

Our perception determines our experience.

It works like this. I bet at one time or another we've all gone into a grocery store and noticed that everyone seemed happy, helpful, and cheery that day. Even the people in the checkout line were full of good spirits. Yet, when we've gone another day, we've had a completely different experience. We found people to be grumpy and in a bad mood-every one of them.

I believe we view our outside world the same way we see ourselves in our inside world. That's why many people continually attract drama into their lives while others do not, or why some people get into fights all the time while others refuse to let the same situation get the best of them.

If this is true, it explains a lot. It could be why, when we feel out of place and chaotic on the inside, we tend to attract more chaos and drama to our outside self. If we feel anger and resentment on the inside, we will, in turn, attract it to our outer world as well.

With that said, let me ask you the following question:

How's your outside world looking lately? Are the.
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PostPosted: 26 Aug 2019 10:56:57    Post subject: Adv





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