The rate of increase of transport costs is accelerating and threatening the profit margins of manufacturers, distributors and logistics companies alike. The drive for sustainable transport solutions, carbon emissions offset plans, higher insurance premiums, increased road congestion and increased taxes are conspiring to drive up the cost of moving goods both domestically and internationally.
The traditional “trade-off” approach between customer service and delivery costs has in recent years been put under the microscope as companies seek to minimize transport costs whilst attempting to avoid damaging their competitive situation.
Innova Supply Chain has extensive experience determining the most appropriate transport solution with access to modelling programmes to assist with mode optimization, infrastructure design, optimum fleet profile and fleet management. Access to the latest relevant performance and cost standards enables us to support improvements to in house operations or negotiate improved terms with third parties.
The structure and services of the fleet management industry have undergone rapid change in recent years forcing both the users and providers of these services to re-evaluate their approach to the financing and operational support of their fleets.
Many users faced with an unprecedented range of options have had to re-evaluate both how they finance vehicles and how they provide operational support. Not an easy task given the considerable difference in the elements included within a service package, the complexity involved in achieving a ‘like for like’ financial comparison, particularly when comparing in-house versus outsourcing of operational support. And not forgetting of course the tax and cash flow implications of the different options available.
Innova Supply Chain consultants have, for many years, been assisting both the providers and users of fleet management services to develop and implement fleet management strategies, and have real hands on practical experience from working on both sides of the industry. The advice provided by Innova Supply Chain is impartial, practical and designed to meet your own particular circumstances. Whether you decide to operate your own in-house support or outsource Innova Supply Chain can add real value.