We are a few days into 2018, and some of the most common resolutions may have already been shattered. For example, the guy saying he was going to eat healthier may have already gone back to fast food.
While it’s important to focus on yourself, why not think outside the box for your resolution this year? Instead of going with a stereotypical new year new you, consider doing something for your business. It’s not too late to start improving things by optimizing your cost per mile to generate major savings.
Optimizing Your Cost Per Mile
1. Look At Your Books
The first step towards saving money is figuring out where it’s all going by looking at your fixed expenses and variable expenses. Your fixed expenses are what you’re going to pay for even if your tracking isn’t operating.
For example, your insurance bill is going to come either way. Do you have any wiggle room to reduce insurance costs, licensing fees, accounting fees, and more? Maybe you can find a cheaper payroll company to run your numbers and file your taxes, like PayWow.
Your variable expenses are the costs incurred to keep your trucks are operating. Examples of these costs include tolls, meals, fuel, tires, repairs, and more. See how you can save by sleeping in your cab instead of buying motel rooms, reducing meal allowance, regularly maintain your truck so it won’t break down, and more.
2. Improve Your Fuel Efficiency
The number one trucking expense is fuel! By becoming more fuel-efficient you’ll see the dollar signs start to stack up. You can do this by making sure your trucks have an aerodynamic design to reduce drag.
Then slow down. The cost of fuel goes up 20 cents per every 5 mph yo go over 60! Coach your drivers to drive less aggressively by coming to slow stops, and slowly accelerating. Also, you could explore your savings options by looking into fuel cards.
3. Take Safety and Education Seriously
You know what’s really expensive? Wrecks. All of a sudden your insurance premium could skyrocket, your truck will be out of service for costly repairs, a lawsuit could surface, and more.
Prevent accidents by taking the time to maintain your trucks to reduce the chances of failing on the road. Also, be sure to regularly teach your drivers about how to drive safely in a variety of different weather conditions.
If your driver is fatigued or sick don’t push them to continue driving. Let them rest and either send a repower for the load or contact your shipper to explain the reason for the delay. Driving tired is the equivalent of driving drunk, and it can be pretty costly.
Also, passing roadside inspections can save both time and money. Make sure your drivers and trucks are complying with mandates such as the ELD mandate to avoid expensive citations.
Enjoy All Your Savings
2017 is gone, all you can do now is build a better trucking business in 2018 by optimizing your cost per mile. By studying your finances, reducing costs, saving fuel, and promoting safety you could see your savings start to really poor in.
Visit TruckLogics for more trucking blogs, and share your tips for optimizing your cost per mile in the comment section below.