Transport Companies South Africa
Outsourcing Distribution Networks to Transport Companies in South Africa
It is obvious that the ever increasing fuel price can affect transport companies in South Africa rather negatively. As the price of petrol and diesel goes up so do the expenses that the company must absorb. However, these costs are directly transferred to the company’s clients making it more expensive to use their transport services.
You may think that this could lead to a decline in the business that the transport companies in South Africa receive. This is a misconception as most businesses that require the services of transport providers still need their goods transferred from one place to another. It is often the case that using transport services is more affordable for most businesses than establishing their own fleets and distribution networks.
This is because there are many elements and factors involved in fleet management that will require a specified department within a business to deal with. These include ensuring the right amount and suitable types of vehicles are purchased to meet the requirements of a distribution network. Qualified and experienced drivers will also need to be found and paid a salary for delivering goods.
But perhaps the greatest expense involved in running a fleet is in the servicing and maintenance requirements for the vehicles as transport companies in South Africa well know. All vehicles need to be serviced regularly and consumables on the vehicles replaced to ensure optimal operation. Consumables include items such as tyres, spark plugs, shock absorbers, etc.
Over and above this, incidental repairs may be necessary from time to time. As the fleet vehicles get older they will be more prone to breaking down and integral parts and components will need to be replaced and any necessary repairs made. While accidents will be covered by insurance any incidental repairs that become necessary due to the regular wear and tear on a vehicle will normally not be covered by an insurance policy.
Eventually older fleet vehicles will need to be replaced by newer models as the expense in maintaining them begins exceeding the cost of purchasing and maintaining a new vehicle. It is often the case that all or at least a large percentage of the fleet vehicles will need to be replaced at the same time as they would have been purchased together when the fleet was first established. And of course last but not least the fleet owner will need to absorb the costs of an increased fuel price in the same way they would when using transport companies in South Africa.