No matter what type of trucking company it is, correct sizing can make the difference between success and failure. A trucking company owner should explore how to calculate the correct fleet size for their needs. This is true for all kinds of transport companies, whether it is a small delivery service, a national transportation company, or a corporate vehicle fleet.
How To Determine The Correct Fleet Size
Different sizes and types of trucking companies need different fleet sizes A trucking fleet that is too large for the business generated wastes money on truck payments, storage, and maintenance. A fleet that is too small can not handle the business efficiently and leads to dissatisfied customers. A small fleet of trucks can always be added to as the business warrants it. When the correct fleet size is determined, it is also a good idea to investigate trucker fuel cards to save money on fuel and keep better track of the fuel expenses for each truck in the fleet.
Determining the correct fleet size is kind of a science. The company owner needs to determine what fleet size will work best for the company’s needs. There must be sufficient vehicles to operate efficiently and keep costs down while meeting customer needs in a timely manner.
To determine the correct fleet size, take these steps:
- Figure out the company’s operational needs, such as volume, geographical area served, type of products moved, and the services the company will provide.
- What is the level of utilization of each vehicle in the fleet? This will include mileage, hours of operation, load capacity, and downtime.
- Asses the condition of each vehicle in the fleet. Will one or more vehicles need replacing in the near future? Are the current vehicles falling short of the company’s needs? Is it time to purchase replacement vehicles? Are the vehicle types right for the needs of the company?
- Analyze the businesses’ peak demand times and slow times. Study the location of the company’s customers in relation to distribution hubs and service locations.
- What are the costs for the current vehicles to be maintained and repaired? When there is downtime for a vehicle, is there a backup vehicle to make its deliveries on time?
- Finally, determine what the cost of added vehicles would be. Are the benefits of adding to the fleet going to outweigh the added costs for purchase, storage, and maintenance?
What Are the Benefits and Costs of Adding the Correct Number of Trucks To the Fleet?
It is important to understand the potential benefits and costs of adding to the company fleet. Too small a fleet of vehicles can hamper company growth and make scheduling difficult. Each added truck will mean a considerable investment and added costs. But adding to the company fleet can mean these benefits:
- Increases in company earnings
- Better flexibility in scheduling
- Increased time and resources
- Changes in fleet management
The potential costs of enlarging the fleet might include:
- Needing to hire more drivers and scheduling personnel, meaning added wages and benefits to pay out
- An added risk factor with more vehicles on the road
- Added maintenance, storage, and repair costs
- More complicated communications with drivers, etc.
- A need for more sophisticated company operations and record-keeping
After all the potential benefits and costs are considered, it will be important to balance the potential benefits with the added costs to see if it is time to add to the fleet or not.