Large or small, running a shipping company is a challenging venture right now. Costs are high — and often uncertain — and there’s a lot that can potentially go wrong on any given load. Yet ground shipments are what power the American economy. And the country needs a vast network of shipping companies that can ensure goods move where they need to go and on time.
Staying profitable in shipping right now means looking for any possible opportunity to cut costs. Here are some ways you can do it.
Critical Ways to Cut Costs in A Shipping Company
1. Focus on your core competencies.
When times are good, there’s room to expand a shipping company’s range of services. When times are uncertain, it’s best to focus on what you do best and let outsourced professionals handle the rest. Most of the time, outsourcing is invisible to your end customers anyway. Whether the computer network running your system is in-house, or part of a hired cloud network, they get the same service either way.
2. Focus on cutting fuel costs.
Fuel is always going to be among the most expensive line items in any shipping company’s budget, so even relatively minor optimizations can result in significant cost savings.
- Encourage smart driving among your drivers: Accelerate and brake slowly. Use momentum rather than the engine whenever possible. Don’t rely on “dumb” cruise control systems.
- Upgrade your mapping and routing software to look for more-efficient routes. Consider following the UPS rule of avoiding left turns – it’s safer and more fuel-efficient.
- When it’s time to upgrade your fleet, look to the Kenworth T680 – the most fuel-efficient Class 8 truck on the road. It can cut on-road costs by up to 10% compared to competing trucks!
3. Don’t put off maintenance.
It might be tempting to try to “save” money by delaying repairs, but it will hurt you in the long run. A little spent on maintenance today could mean a lot saved by preventing major issues or breakdowns that delay loads.
4. Upgrade your fleet with used vehicles.
Heavy-duty trucks are built to last. Used Kenworth trucks hold their value, and can perform for up to a million miles without needing a major overhaul. Buying trucks that are 2-4 years old can cut your costs in half, without cutting performance in half.
And for the best in used Kenworth trucks, come to Coopersburg & Liberty Kenworth!