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Will transport planning software replace the dispatcher in the coming time? This question may have come in many peoples’ minds. Many logistics managers and transport companies are in a dilemma. The answer to all these queries is no. Routing and scheduling automation system use many algorithms and variables to calculate miles covered by a vehicle. But the companies cannot map all the data with its help. You cannot use transport software in case of emergencies and to make spontaneous decisions. A dispatcher assists in such cases with his knowledge and intelligence.Read More
Five Reasons Why a Dispatcher Helps a Transport Business:
1. Dispatchers know all about their clients: Dispatchers have additional knowledge that is not provided by any software system. They often keep in touch with potential customers and buyers. Sometimes the customers want to change their delivery slots and timings, which is not possible with softwares. The dispatcher can make the changes in the shipment time manually. This helps a company to retain its business and improve sales.
2. He knows the fleet and drivers: A dispatcher knows all about the vehicles and cleverly strategizes the company vehicles’ goods. This saves a lot of money on fuels, trips, and vehicle maintenance. A dispatcher has more knowledge about the drivers and the workers than any software. He knows all about their preferences and qualifications. He knows if a driver has faced any problem during his trip. The workers and the delivers can approach him with their questions and find solutions to their problems. This keeps them motivated and does not cause a shortage of drivers.
3. Dispatchers can assess unusual scenarios: The transportation process is becoming more difficult day by day. Sometimes, the number of orders increases, and many times the volume of the goods decrease. The companies want to expand their business, but they have to do so in a legal manner. The fleet businesses have to follow many rules and regulations while doing business. The dispatcher uses trucking company software to plan the right routes. This gives him time to deal with any situation or emergency. For example, if something happens to the driver in mid-delivery, he has to be replaced, and the company has to allot a new driver in his place.
“There is no situation like the open road, and seeing things completely afresh.”-James Salter
4. The knowledge of a dispatcher goes beyond transport planning: Transport management softwares saves the companies’ time and efforts. A dispatcher utilizes it to advise customers, coordinate deliveries, and keep track of the drivers. He can inform the customers in case of late deliveries and find solutions to the drivers’ problems. It also leaves time to solve tactical and strategic issues. This reduces a company’s stress and adds value to its business.
5. Dispatchers keep you updated about the transportation system: Software like axon payment system helps provide inputs and data. The dispatcher checks this data and makes necessary changes. He adjusts the method, parameter, and settings. These facilities simplify the work of a dispatcher and help him to make the right business decisions.
What are the benefits of using a dispatcher?
1. He keeps the drivers active: Good dispatchers can multitask. They delegate hauls to the drivers and ensure they make deliveries on time. They also focus on keeping drivers on course and manage their hauls. This saves a company’s money and ensures that the drivers remain active. It improves customer service and creates new business opportunities for the fleet companies.
2. Dispatcher helps you take care of your customers: A good dispatcher is also a good communicator. He speaks calmly with drivers and motivates them to do their work efficiently. The dispatchers also reply to emails from the customers and solve their problems. This helps a company to build a solid customer base. They are experts at handling hostile customers. Sometimes, you can solve the problems of the customers by just being compressible listeners.
3. A dispatcher helps to do business with government regulations: A good transportation knows all the government’s rules and regulations. Many companies have no idea of the problems faced by the drivers on the roads. All this work falls on the dispatchers as they are the ones who understand all the guidelines. The dispatcher helped the freight companies to stay at the top of their maintenance. He assists the company to reschedule and replace the drivers. The transportation accounting software reduces the risk of road accidents and minimizes the chances of fines.
4. It ensures workers’ happiness: The dispatchers know the drivers are the transportation process’s lifelines. It can upset the drivers when you ask them to work overtime or deal with adverse working conditions. Many transport companies are suffering from a shortage of drivers. It is essential to keep them happy, and in good spirits so they do their work effectively.
Video Credit – Alfa X Logistics
The position of the dispatcher is one of the most overlooked phenomena in the transportation industry. A good dispatcher spends countless hours communicating with drivers, customers, and suppliers. He is the last person to leave the office even after drivers. Dispatchers are responsible for all sorts of communication. This makes your business thrive and helps you to overtake your computers.
Agriculture and transportation are related to each other. More than that, agriculture highly depends upon the trucking industry. Once the yield is produced it is the heavy-duty commercial trucks only that transport the yield to the market. Sometimes, there are few trucking organizations that deal in business as well as farming too. They use trucks to transport industrial commodities as well as agricultural commodities. It is recommended that for ascertaining the profits, it is necessary that both the activities must be managed separately. Other than this, there are few other tips too that can be taken in order to manage the farm trucking business successfully as well as profitably:Read More
1. Independent Accounts
The first and foremost recommendation that one must understand is the usage of separate accounts. Furthermore, by separating accounts, a business can understand the strengths as well as weaknesses that involve particular segments. Thus, the best thing an organization can do is separate the accounts of trucking as well as farming segments. It is not a choice but in fact a mandatory thing that every business must do. By doing so, a business will also be able to understand whether the trucking segment is profitable or non-profitable.
2. Financial Power
A profitable business is one that maintains a stable financial position. Talking technically, a business’s profit is directly related to the working capital of the organization. For a better and strong financial position, a business must maintain at least 25% of working capital out of its revenue. In addition to this, this is highly beneficial for an organization as it helps in monitoring its financial strength. One can also ascertain the relationship of working capital with the revenue via which profit and loss can be determined. A better financial position is one in which debt payments can be covered effortlessly without bothering about future or present income.
Video Credit – ET Transport
3. Using Profits
Once a business generates profits, the major task is to use them in a better place. When surplus cash is available in hand a lot of money is spent without proper planning. This sometimes also creates the problem of deficit in the future for business organizations. Hence, in order to stay away from this kind of situation, a business owner must learn how to spend the surplus in a better and productive manner. Areas, where a business can use profits, are interests, payment of income tax, repayment of taxes, and growth and development of business. Other than this, a business can also use the amount in purchasing assets for further expansion of the business segment.
4. Separate Account For All Costs
A business has to incur various costs at regular intervals. Some of these costs are fixed in nature while some are recurring in nature. Thus, it is recommended that for best and profitable results that a business must maintain different accounts for each kind of cost. Here are a few costs for which a business can maintain a separate account:
For trucking, organization fuel is an essential as well as a basic commodity. Thus, one can rightly say that trucking corporations cannot function without fuel. Thus, fuel costs are something that will be incurred at almost every interval. Therefore, for this cost, a business must maintain a separate account. Other than this, consumption can also be recorded which in turn a business can control costs too. By maintaining a different account for fuel costs a business can determine the average costs spent on a particular cost. Thus, a profit margin can also be determined. The average cost per miles tracker is the most important number that you should know how to calculate. To give you an idea about what you can expect to spend and how you can add your own numbers to determine the cost of your trucking company, we have created a list.
Repair and Maintenance
While driving a truck is subjected to a lot of wear and tear as well as depreciation. Thus, even for repair and maintenance, a trucking organization must maintain a separate account under the head of maintenance. Moreover, wear and tear are natural in nature, As the load is increased, the time period of repair also increases. Additionally, by maintaining a different account a business can also ascertain its fuel cost as well as consumption per mile. In case, if there is fluctuation in maintenance as well as repair costs a business must look at the root cause of the problem and try to solve it as soon as possible.
5. Utilizing Time
Other than money, a business must also learn to use time efficiently as well productively. For this purpose, an efficient and skilled workforce must be hired. Efficient employees always do the work on time and do not delay it. Other than this, the workflow must be established that must be followed properly.
Thus, by following the above-mentioned tips and tricks a business can turn their farm trucking business into a profitable venture. Moreover, as the market situations are majorly unstable in nature, hence, a business must try to maintain a proper equilibrium between two businesses so that proper financial stability is maintained.
The majority of business houses require vehicles in their day-to-day working. These vehicles are no less than assets as therefore also have to undergo the audit process just like other regular assets. However, the majority of people are already familiar with the concept and process of auditing. In simple words, auditing is a process of financial inspection concerning the business and its assets. It is a necessary process and is conducted in a specific period.Read More
Auditing is a pretty risky yet mandatory process. Thus, for an uncomplicated and hassle-free process, it is recommended that a business must keep all its documents ready along with the proper evidence and proofs. Other than this, the vehicles that are used in industry are also subjected to fuel audit. As the process is risky, there are a few ways by which one can reduce the amount of risk associated with the business vehicles. Here are a few ways that an organization can follow to take down the risks to a significant extent:
Categorizing the Vehicle
The first and foremost step to do is differentiate the vehicle. According to the central and governing authorities, there are two types of vehicles: passenger vehicles and motor vehicles. The vehicles such as vans, taxis, and pick-up trucks are classified as passenger vehicles. The vehicles that are used 50% for ride-sharing or for carrying passengers, they will be called passenger vehicles. While on the other hand, vehicles used for transporting goods or commodities from one place to another for the majority of their time are termed as motor vehicles.
The only difficulty a vehicle faces when classified as a passenger vehicle is during the lease, interest, and capital expenses. Other than this, there are also times when the majority of employees also utilize the vehicle for personal use along with the business work. The officials thoroughly inspect this during the auditing process.
Devaluing the Paramount Cost
There is a limit on the amount that can be written off, especially in passenger vehicles. There is an utmost limit of $30000, which was established in the last decade by the central authorities. Since then, there has been no change in the limit. Other than this, one can also benefit from claims and returns from the taxable amount. Consequently, this amount can be claimed on the original or actual cost of the vehicle. In this, the present or existing price of the vehicle is not considered. The amount is calculated based on historical data rather than the market price.
Video Credit – Commercial Fleet Financing, Inc.
Standby Cost Advantage
The standby charge is a commonly used term in the auditing process. In simple words, it is a term used to denote the financial benefit that will be included in the income of an individual or an organization. An individual can receive a standby benefit of 24% of the amount equal to the actual or original cost. However, the only condition in receiving this benefit is: the vehicle must be used for professional purposes on a large scale. If it is found that the vehicle is used for personal purposes on a majority scale, then there will be difficulty in receiving this benefit. Other than the above benefit, the employees will also be liable to receive more benefit on the actual cost of the vehicle that the corporation is paying. However, in this case, too, the actual usage of the vehicle will be verified.
Justifying the Usage of Vehicle
The governing and central authorities rely on the evidence and physical paperwork. Thus, it is mandatory for the people or the organization to justify people’s usage with supporting documents that act as evidence. The majority of business houses take support of the logbook. It is a kind of book that the organization utilizes to keep a record of vehicle usage. As keeping a record of the odometer is the primary function, other than that, there are a few more things that must be kept in mind:
With all the necessary information available, the documents will be supported with the required evidence, and thus, complete justification will be available in regard to the vehicle usage. Owing to technological advancement, all this information can be tracked down through GPS trackers or telematics. Thus, vehicle usage records will be easily prepared.
Thus, in a nutshell, one can say that auditing is an important process that has to be undergone by each and every business. However, by taking the proper steps, a company can reduce the risk associated with the business vehicles. Other than this, one can also consult a tax professional in this matter to get a better and clear picture. Auditing is necessary to keep the business out of legal troubles in future which can surely harm your professional reputation and goodwill.
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