5 Ways UK Hauliers Can Save Money as Fuel Prices Soar.

To save money, any organization has to change something. The secret to success lies in choosing the correct changes while still maintaining acceptable levels of customer service. A strategic plan might seek to identify a smart mix of process changes, introducing deep analytics and enabling the right technology.

We are not performing such a deep dive in this article but rather pointing out worthwhile and realistic potential actions that a UK haulage business might consider. They address variable costs because fixed costs such as rent would be normally only addressed by a major decision-making strategic plan.

We also assume that you would already be maximizing resource utilization. For example, optimizing HGV floor space to increase load storage density and weeding out inefficient processes that burn employee time needlessly.

#1 Let a financing specialist loose on your fleet funding

Some say HGV finance is a specialist area, yet it is just another class of asset. Asset Financing is a very competitive and innovative branch of commercial funding. Independent finance specialists can obtain funding for a very eclectic mix of everything from herds of cattle to heavy plant.

These specialists know the market inside and out. They know which providers the best bet is to cut a great deal for refinancing your HGVs. Usually, they have built up a network of contacts in the finance industry that they can tap into. The bottom line is not to restrict yourself to the recognized specialists in HGV finance. A better deal than your current arrangement can save thousands in annual payments, and it may cost you absolutely nothing to consult an asset finance specialist.

#2 Reduce your HGV driver agency recruitment costs

Taking on temporary HGV drivers can be costly with agency recruitment fees. But there’s another solution with AVAIL. With a database of over 20,000 reliable HGV drivers nationwide ready to work.

The concept is simple. Post a job on to the AVAIL platform, stating details such as location, rate of pay, working hours, type of driver (Class 1, Class 2, etc), and so on. Then sit back and wait for applications to arrive, as drivers are notified of the role in your area via the App they have downloaded, and the details you entered match their profile. Then choose your preferred driver and pay just ￡7.50 per active driver per DAY. Not a penny more.

The great part is that you have full transparency of your costs. As aside from the ￡7.50 you pay AVAIL the driver gets the rest, so you know exactly what the driver gets, and the driver knows exactly how much they get paid, so they’ll be more reliable.

If you want to know more about the AVAIL platform then click here - Operators’ Hub

#3 Engage a good logistics consultant

Consultancies often specialize or major in a specific logistics activity such as warehousing, but many long-established experts bring a wide breadth of knowledge to an engagement. Preparing a clear brief is a required starting point. That could even specify a measurable objective such as “reduce operating costs by 2% to 5%” and might also include a financial incentive for achieving the higher end of the range.

The important element to remember is that these individuals have operated inside many companies like yours. They know what initiatives deliver results and which are best avoided from their experience. That means they don’t waste your time.

#4 Look abroad to find innovative cost-saving solutions

For example, the Massachusetts Institute of Technology (MIT) Freight Lab frequently conducts studies on efficiency levels across many aspects of haulage and general logistics. One study estimated that HGV drivers can lose up to 4.5 hours per day, or roughly 40% of their paid hours, just sitting around, waiting to make a delivery or collect a consignment. Focussed analysis of this aspect alone is very likely to potentially identify process improvements.

It’s worth setting aside some time to seek out logistics cost-saving case studies from far and wide.

#5 Incentivise employees to identify and implement cost-saving measures

Companies frequently overlook one great asset – the knowledge, familiarity, and experience of their workers. Not all individuals will respond to a challenge, of course, but you only need a handful of worthwhile ideas to make a difference to your bottom line.

Typically, suggestions from this source may revolve around process improvements. Reducing the cost of a specific workflow by even 5% generates significant savings if it is one that is repeated 10,000 times a year or more.