The following may help you decide whether to use their own vehicle (in-house) delivery or use of courier delivery services from outside, as a custom, for immediate delivery, or path. This analysis is based on monthly costs to operate a delivery vehicle. Also keep in mind:
The cost of a vehicle is not what you pay for it, but the total cost when you are finished using it. First, determine the cost of operating their own delivery vehicle:
- the cost of the vehicle (administration and logistics)
- the cost of fuel (petrol or diesel)
- Insurance (Commercial and responsibility)
- maintenance (repair and maintenance)
Next, determine the employee cost to operate the delivery vehicle:
- wages and salaries (federal and state income taxes, including FICA)
- Federal and state fees (workers compensation, unemployment insurance, etc.)
- employee benefits (health, life, dental insurance, 401k, 403b, etc.)
- Fill-in replacement (vacation, sick leave, etc.)
Then, determine how the delivery vehicle it is to be used:
- on Demand, (immediate delivery)
- daily path (delivery once or twice a day)
- weekly delivery (providing the same day each week)
After that, the total cost is determined, divide the number of deliveries per month for the total monthly cost of the service provided. This number is the average cost for the delivery of each delivery. If you also keep track of the mileage each month, you can easily determine the cost per mile to operate the vehicle. Knowing the cost per mile will help you compare the costs with the local courier delivery services as many charge by the mile after a base charge.
Once you have the in-house cost to provide delivery services to the customer, contact one of the local courier delivery service company to compare the rates to determine whether to maintain timely delivery in-house, or contract with the courier delivery service company. of delivery service companies we are always looking for new clients and could help you analyze your current delivery requirements and will most likely save you time and money in the process.
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