Leverage: Adding Value by Reducing Costs Part 6 (6 Part Series)
Forwarding Freight, In Job Logistics, Liability Insurance, Logistics, Transportation Jobs, Warehousing Jobs, distribution jobs
This is Part 6 (6 Part Series)
Full service lease
Fleet operators choosing this popular option should be familiar with key elements of these agreements. Providers make profit margins through both fixed and variable charges with most profits made in the first and second years when maintenance costs are lowest. “Walk-away” terms that shield lessees from early termination penalties can be negotiated to be effective in as little as two years.
Safety and compliance
Safety is the highest priority at any well run company. As a practical matter, safety management is nothing more or less than cost control. It is a cost of doing business and its purpose is to avoid other, more expensive costs. The direct and indirect costs attributable to accidents and injuries, penalties for a non-compliance with regulatory requirements, insurance premiums, legal expenses lost productivity and the business impact of negative publicity are examples of exposures a safety management program seeks to minimize.
In a best practices environment, safety is an integral part of every operation and the policies, procedures and programs governing the business reflect this commitment. Safety is the responsibility of all levels of management, starting with the CEO.
Getting an accurate accounting of current state fleet expenditures and identifying and eliminating hidden costs are cornerstones of fleet cost reduction.
Click here for part 5 of this 6 part series.
Click here for part 4 of this 6 part series.
Click here for part 3 of this 6 part series.
Click here for part 2 of this 6 part series.
Click here for part 1 of this 6 part series.
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admin @ March 16, 2009
