They say you can’t teach an old dog new tricks. And that’s precisely what it can feel like when you’re trying to reduce spending in your fleet budget. Each year you face similar budget choices, and with rising prices on fuel and insurance, it’s tough to make a big change. This is why you need a budget solution that’s going to tap into several areas at once, reducing transportation expenses not by cutting corners on quality or safety, but by preventing significant problems that cost you money.
5 Ways to Cut Transportation Expenses in 2020
Infinit-I Workforce Solutions aligns with day to day operations of trucking businesses to meet and exceed budget goals. We understand where you get snagged financially, and we apply solutions that get to the heart of the matter.
The Top 4 Transportation Expenses
The top costs of running a trucking business are as follows:
- • Insurance ($10,000-15,000 annually per truck)
- • Fuel ($70,000+ annually per truck)
- • Payroll ($45,000+ annually per driver)
- • Assets ($100,000+ for a new tractor, $50,000 for a new trailer)
This doesn’t include other operating costs such as administration, or legal costs (which can come unexpectedly and get massive) such as fines, fees, and lawsuits. Preventing lawsuits, streamlining office costs, mitigating insurance payments, saving on fuel, reducing payroll, and preserving existing assets may not seem related. But they are.
Each of your “big ticket” spending items is related to driver training and communication.
This is the new “trick” you can teach that old dog. Our first and most important tip for cutting transportation expenses ties into all the others, and it is:
1 – Improve Safety
Continually teaching relevant driving skills to all your drivers, from reviewing the basics to training for new tasks, is the top factor that will help you reduce accidents and incidents. And when you reduce accidents and incidents, you reduce the frequency of fines and lawsuits, lower your drivers’ CSA scores, and help insurance costs hold steady.
How do you get all your drivers to participate? Safety is your best investment, but you need a streamlined method that makes fiscal sense and increases training effectiveness.
Training with Infinit-I Workforce Solutions lets you assign brief, relatable, online modules to 100% of your drivers that they can access anywhere, at any time, from a mobile device. Train frequently on topics pertinent to your company’s growth, such as:
- • Speed remediation
- • Hauling HAZMAT
- • Inspections and roadside checks
- • Emergency weather conditions
- • And hundreds more
All training modules are automatically documented when completed on a third-party server — secure, organized, and accessible to you. Instead of hoping to have the proof of due diligence they need, clients have used our documentation as admissible evidence in court.
2 – Get Fuel Efficient
Training topics with Infinit-I Workforce Solutions include a Fuel Efficiency series designed to keep drivers, dispatchers, and maintenance personnel mindful of top fuel-economizing practices.
These practices include:
- • Safe speed
- • Cargo distribution
- • Progressive shifting
- • Reducing idling
- • Cutting down out of route miles
With the high cost of fuel, even ½ of a 1% reduction in fuel costs per year (0.05%) will save you tens of thousands of dollars. Safer driving includes more efficient driving!
3 – Reduce Turnover
Make each payroll dollar count. Turnover interrupts your investment to the tune of tens and hundreds of thousands of dollars per year.
Drivers leave when they’re not valued, not succeeding, or don’t have a positive connection with the company. Drivers need clear communication, clear expectations, and to be kept in the loop.
We offer several ways to help you reduce turnover:
- • Driver / Dispatcher Relationship Training – Don’t lose good drivers because lines are getting crossed.
- • Training videos as screening tools – Find and hire the right people. Assign content as part of the application process, clarify job expectations, and see who’s serious.
- • Convenient platform – Drivers can access messaging, training videos, and other personalized content (such as HR documents) from a mobile device.
By reducing turnover, you’re reducing hiring, training, and advertising costs. You’re also increasing your ability to offer competitive wages.
4 – Protect Assets
You protect assets when you reduce accidents and incidents. Unsafe driving habits are hard to break when you only address them 2-4 times a year. Frequent, repeated, and consistent training works. 5-7 minute mini-modules replace old habits with new ones through repetition and accountability.
You can also offer training in maintenance and pre-trip inspections, so you can fix or replace equipment before problems get worse. Remember, capital investment in new parts and vehicles is often overcome by a reduction in service and repair costs. Faulty equipment costs you money.
5 – Improve Customer Base
Shippers want to work with reputable companies. Shippers can get sued for not selecting a safe carrier. It’s a risk for them. And they’re doing their research. Your drivers make or break your reputation. A better customer base helps profitability and revenues.
Having a training program in place shows you’re a company that takes a culture of safety seriously. You can pick up jobs from higher-quality companies. That can be a boon to your budget if you have room to be a bit pickier.
For example, a lot of companies are struggling with the delay of the drivers — with shippers who keep them waiting during loading and unloading. Drivers are using on-duty hours with no miles. If you’re known for top safety practices, you’ve got some leverage when seeking clients who are more efficient, professional, mindful, and respectful of drivers’ hours. You don’t have to “catch as catch can.” You’re not a beggar. You can be a chooser.
A New Trick To Reduce Transportation Expenses
Whether your trucking company is an “old dog” or a new one, we’d love to help it learn a new “trick” or two. Infinit-I Workforce Solutions has been proven to reduce trucking costs by getting to the heart of safety and communication issues across the business. Our solution is holistic, relationship-building, and industry-leading.