Saving costs in tough times: Driver training is an answer

JOHANNESBURG, South Africa – Economists predict South Africa’s economy could take more than a year to recover from the Chinese ‘flu while many businesses make difficult decisions about cutting costs.

So, fleet managers need to take some difficult decisions…

MasterDrive’s MD Eugene Herbert says training can reduce fleet costs in three of the top 10 most expensive categories of expense:; driver downtime, vehicle downtime, and the expense and difficulty associated with obtaining new parts.

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“An effective safety management programme,” the says, ”is of utmost importance with a well-run fleet. Training will result in a number of benefits and reductions in expenses – especially if involving the cost of accidents and injuries.

“Insurance costs can be reduced because you will become a low-risk company for which some insurers might reduce premiums. Trained drivers will complete their job more effectively and therefore have higher productivity rates.

”Lastly, by investing in your employees, you will improve retention as you show drivers that you care about their well-being and growth.”

DO THE MATH…

To calculate how much a crash might cost, Herbert explained, take the expense of all your crashes in one year and multiply that by your percentage profit margin to see how much more revenue was required.

For instance: “If your crashes cost you a modest R100 000 a year and you have a profit margin of 10%, you need to generate an additional R1 000 000 sales – a very conservative example.”

TIGHT BOTTOM LINES

Realistically,he said numerous truck crashes could soar into millions given injuries, lost cargo, vehicle damage, and clean-up costs.

“Training can correct driver behaviour that places them at risk.”

“During a time when the bottom line is being pulled very tight, a lot of pressure is placed on fleet managers to save costs wherever possible. Deciding which costs can be a very difficult, however, in the long-run, it will yield dividends.”