Seeking sources of profitability in uncertain times
21/07/2011
The delivery and haulage industries have suffered significantly from the economic downturn and ever increasing fuel costs have caused huge concern over profitability. As the delivery industry tries to innovate and find alternative ways to cut costs, other businesses also innovate and create solutions.
24hrdelivery.com is one of those companies. Steven Campbell and his team have set out to tackle the problem of how to make the delivery industry more efficient by identifying where money is being lost by delivery companies. After research and consultation with the industry, they found that the major problem is that many delivery vehicles are still making return journeys empty or with spare capacity.
Why 24hrdelivery?
To emphasise the size of the potential economic savings;
28% of lorries (116,200 of them) are making return journeys empty, while around 50% are only part full
15% of vans 80,000 of them) make return journeys empty
Only 14% of the distance travelled by vans involves them being over three quarters full
38% of this distance involves vans less than 25% full
(Figures from Department for Transport)
Finding extra work to help fill spare capacity in a vehicle is therefore a significant issue.
How it works
24hrdelivery.com has created an online platform where delivery and haulage companies can search for extra work specifically to fill these empty ‘back loads’. Couriers can register on the site for free, and start bidding for jobs. The site has been designed to be as cost effective and as transparent to the courier as possible; therefore there are no subscription fees. Couriers are charged 8% of the value when the bid is accepted and the job completed.
What else can it do?
The site can be used not only to reduce empty return journeys, but also to source new work or even find couriers to help during periods when your business is running over capacity.
Does it work?
Feedback from couriers who have used the site has been very positive, “I have used 24hrdelivery.com recently and I can’t say enough about how great the system is. The ease of use and transparent pricing structure surpasses all other courier exchange websites I have used. You can’t lose. Brilliant!” The number of jobs listed on the site is mounting up, so act if you would like to gain some of this new work. Go to 24hrdelivery.com
SOURCE: http://thedeliverymagazine.com/wordpress/index.php/seeking-sources-of-profitability-in-uncertain-times/
Wednesday, July 20, 2011, 13:16
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