Transportation is a key part of a business, whether it’s an online or physical store. Businesses must move their goods and services from providers to stores and consumers. Each business is always looking for ways to increase its profits. One proven way is to reduce transportation costs, whether it’s from manufacturers or to customers. That’s why transportation cost is a priority concern.
The ever-rising fuel prices keep businesses on the continuous drive wondering how they can minimise transportation costs. From considering alternative transport that is cheaper than using company cars to getting fuel cards that will provide businesses with reduced rates at the pump, here are different ways your business can use to reduce its transportation costs in 2023. Keep reading to discover more!
Getting a Fuel Card
Fuel cards play a vital role in the transportation industry. After taking time to compare fuel cards to get one that offers the best deals, fleet managers give them to their drivers to enable them to fuel their vehicles at determined stations. Fuel cards with the best deals also act as security measures.
They help fleet managers to monitor their drivers’ expenses throughout the delivery journey. Companies can get fuel cards from different places, including various national brands and individual gas stations. Many companies that offer fuel cards provide their customers with reduced rates at the pump through discount options across a massive array of retail partners.
Aside from reduced rates, fuel cards also help reduce transportation costs by preventing fraudulent fuel charges, offering accurate data and analytical reports, and controlling overspending.
Considering Alternative Transport That is Cheaper Than Using a Company Car
A company car is just like a personal vehicle. It requires the company to add fuel, maintain, and insure it, not to forget other associated costs. All these expenses significantly increase transportation costs. A company can look for ideal alternatives cheaper than company cars.
Depending on different factors like distance, purpose and goods being transported, companies can encourage their workers to go on foot or use bicycles, motorbikes and public transportation. These options can help minimise fuel consumption, reducing the overall transportation costs.
Invest in Technology
Companies can reduce their transportation costs by investing in technology. Good examples of these technologies are telematics, GPS tracking, digital record-keeping solutions, transport management systems and route planners. Automated systems offer accurate records that company owners can use to make quick and important decisions that can help save transportation costs.
Route planning systems can help your company plan transportation smartly by offering accurate and up-to-date information about accidents, traffic and road construction. These systems help drivers choose the best routes to reach their destinations in the least possible time.
While all these methods help companies to save transportation costs, fuel cards are the most popular way. They help save transportation costs in several ways, including increased control over spending, rewards and incentives, centralised payment, and improved expense tracking. Do you want to save on transportation costs? Use these three proven ways.