Be positive. (part 1)

There is no time like the present to improve on what you do best. Take time to look at your business and satisfy yourself that all areas that affect your running costs have been examined in detail and measures have been taken to make your fleet is run as efficiently and potentially profitably as conditions allow.

The New Year is always a good time to take stock of your business and for 2011 there is no exception. I think we all know by now there is no easy way back from our recent troubles and for many of us all we can see is more problems on the horizon:

• Spiralling fuel costs,  

  Diesel price (pence per litre):December 2009: 109.3 

                                                    December 2010: 126.2 = 15.1% increase on 2009

                                                            December 2011:  139.6 = 11% increase on 2010

Figures supplied by the AA In this report I will deal solely with fuel.

Fuel:

   There is little we can do to stop the price of diesel rising but we can take steps to minimise the effect on our business:

• Pass on any fuel price increase by way of a fuel surcharge to your customers. Make sure the figure is calculated against a base figure at a fixed date and reviewed on a weekly basis. The calculation can be relayed to the customer via web or email and either increased or decreased as the market changes. Customers do understand the pressure of fuel pricing on our industry and will pay reasonable increases providing the surcharge is justified and steps are taken by you, the carrier, to reduce your fuel consumption. By reducing your consumption you will show the customer that you are doing your part to manage his charges and you can do your bit to save the environment at the same time.....
• Look into telematics systems to monitor driving habits of your LGV drivers. Through close examination of driver behaviour you may be able to reduce your fuel bill by up to 15%.
• Invest in aerodynamic equipment to improve the MPG of your trucks. A 4.9 Metre double deck trailer with curved front can save approximately between 10 to12% of fuel consumption compared to a standard flat top trailer. A fuel saving of 10% will cover the cost of a trailer conversion to an Eco front within 18 months.

Meanwhile if there is any area of this posting or any aspect of your business where you feel you would like more information or Mulligan can help you with some good advice. Please give us a call.

Good luck 

Jon Reyner

07810-353346