costs per mile

[jrl_driver]

hi,i’ve got myself a new job as a transport planner at a firm i was driving for,they have 9 artics,1 x rigid 4 wheeler & a 7.5t rigid they also have 4x6 wheeler ro’ro hook loaders.
i am in the process of trying to cut their running costs for their trucks,main 1 being diesel of course.
the hook loader side of the business at the moment,is the most ineffecient in the use of fuel/time etc so i am trying to start there first as i have a lot of experience with this side of the business from working here & for another firm doing the same sort of work…

does anyone have any running costs for a 6 wheeler hook loader,or a ball park figure,ideally i’m looking at costs per mile as i am trying to reduce the amount of mileage the trucks do to & from certain jobs,so i can then show what i can save the company if they are willing to change a few things that they are doing…

i’d be grateful for any info on running cost for any of the other vehicles i’ve mentioned above or if you need any more info please say
thanks
John

[hammer]

Can’t help you with hookloaders but I run a 6x4 tipper on quarry work in a pretty hilly area. Usually get between 8.5-8.8mpg, sometimes worse, sometimes better.

I work my costs per mile out like this;
Diesel cost per litre = £1.40 x 4.546 = £6.36 per gallon.

Divide your cost per gallon (£6.36) by your MPG (call it 9mpg) = £0.707 per mile.
Less VAT at 20% = 56.53 pence per mile.

You need to make sure that you accurately measure your fuel consumption and that your drivers follow the same procedure each time they fill up otherwise your results will be skewed and you won’t get an accurate idea of where you stand.

[jrl_driver]

thanks for that hammer.very helpful.i know the hook loader i was in today was doing about 6.5 to the gallon,so can have a start there…
at the moment the firm have no procedures set in place so they can see how much fuel the vehicles are using!! this is across the entire fleet!!!
this is something else i am looking to change,they are very behind the times with a lot of basic stuff,ie drivers check sheets,defect reporting,fuel economy,workplace agreements,running costs etc…
i have a lot of suggestions & ideas as to how to improve things,but need to sort the basics first…

[hotel_magnum]

join the rha, they supply all that sort of thing and update it regularly. and for what you dont know they are at the end of the phone. i have found it money well spent

[ncooper]

If it’s any help, our artic costs £1.66 per mile.
That includes everything but the driver’s wages.
The figure is so high because it’s based on an annual mileage of
only 23,000 and the trailers are fridges, with the associated high
maintenance and running costs.
A friend of mine works on the basis of £1.35 a mile plus wages, but on an annual
mileage of 80,000.
Indivual vehicle costs will depend entirely on the type of work each one does, as I am
sure you know.

Regards,
Nick.

[jrl_driver]

hotel magnum:
join the rha, they supply all that sort of thing and update it regularly. and for what you dont know they are at the end of the phone. i have found it money well spent

thanks,i’ll see if there a member when i get back to work next week

[jrl_driver]

ncooper:
If it’s any help, our artic costs £1.66 per mile.
That includes everything but the driver’s wages.
The figure is so high because it’s based on an annual mileage of
only 23,000 and the trailers are fridges, with the associated high
maintenance and running costs.
A friend of mine works on the basis of £1.35 a mile plus wages, but on an annual
mileage of 80,000.
Indivual vehicle costs will depend entirely on the type of work each one does, as I am
sure you know.

Regards,
Nick.

thanks nick,some helpful info there…the artics only carry the goods we manufacture on site,which is new cardboard boxes,6 artics down plated to 31 tons & 3 are at 38 tons.mileage is about same as it happens,so there running costs should be lower…

[shropsbri]

With all due respect,shouldn’t the transport manager have these costings to give you?

[jrl_driver]

ShropsBri:
With all due respect,shouldn’t the transport manager have these costings to give you?

he should if they had 1!!
got a guy in now who has had nothing to do with transport,he lives in preston & commutes to halifax everyday,all the hook loader works is in the local area,no offence to him,but he hasn’t a clue how it works…part of reason i got job.
i’ve done it for a lot of years.i’ve got most of the CPC(national)need to retake my part 4 exam & a lot of experience.so i know a lot more than he does…not his fault,companys fault for not employing a proper transport manger…guess it’s something for me to aim for…

[dave_k_1]

jrl driver:

ShropsBri:
With all due respect,shouldn’t the transport manager have these costings to give you?

he should if they had 1!!
got a guy in now who has had nothing to do with transport,he lives in preston & commutes to halifax everyday,all the hook loader works is in the local area,no offence to him,but he hasn’t a clue how it works…part of reason i got job.
i’ve done it for a lot of years.i’ve got most of the CPC(national)need to retake my part exam & a lot of experience.so i know a lot more than he does…not his fault,companys fault for not employing a proper transport manger…guess it’s something for me to aim for…

They’ll need to have a transport manager, he will be it. Therefore he’ll have his papers etc so how can you say you know a lot more than him?

[jrl_driver]

he hasn’t got a cpc,he’s never had anything to do with transport until he started at the company,never driven a wagon or had anything to do with them.i have already been giving him advice on various things.
there putting him through his national CPC course this year so until then i am giving him ideas on how to save money,improve things & other info related to the business
they have a cpc holder for the O licence & that’s it,he has nothing to do with the haulage side of things regarding costs,wages,fuel etc.
as i said in my original post,this firm is so far behind the times it is unreal…

[wheel_nut]

dave_k:

jrl driver:

ShropsBri:
With all due respect,shouldn’t the transport manager have these costings to give you?

he should if they had 1!!
got a guy in now who has had nothing to do with transport,he lives in preston & commutes to halifax everyday,all the hook loader works is in the local area,no offence to him,but he hasn’t a clue how it works…part of reason i got job.
i’ve done it for a lot of years.i’ve got most of the CPC(national)need to retake my part exam & a lot of experience.so i know a lot more than he does…not his fault,companys fault for not employing a proper transport manger…guess it’s something for me to aim for…

They’ll need to have a transport manager, he will be it. Therefore he’ll have his papers etc so how can you say you know a lot more than him?

the artics only carry the goods we manufacture on site,which is new cardboard boxes,6 artics down plated to 31 tons & 3 are at 38 tons.mileage is about same as it happens,so there running costs should be lower…

We don’t know what the hookloaders and the 7.5 tonner are used for but from the above, they wouldn’t need a qualified transport manager

[wheel_nut]

jrl driver:
hi,i’ve got myself a new job as a transport planner at a firm i was driving for,they have 9 artics,1 x rigid 4 wheeler & a 7.5t rigid they also have 4x6 wheeler ro’ro hook loaders.
i am in the process of trying to cut their running costs for their trucks,main 1 being diesel of course.
the hook loader side of the business at the moment,is the most ineffecient in the use of fuel/time etc so i am trying to start there first as i have a lot of experience with this side of the business from working here & for another firm doing the same sort of work…

does anyone have any running costs for a 6 wheeler hook loader,or a ball park figure,ideally i’m looking at costs per mile as i am trying to reduce the amount of mileage the trucks do to & from certain jobs,so i can then show what i can save the company if they are willing to change a few things that they are doing…

i’d be grateful for any info on running cost for any of the other vehicles i’ve mentioned above or if you need any more info please say
thanks
John

I imagine you have picked up a slightly toxic chalice with this job, as an ex driver you are firstly going to have to overcome the problems you will have with your former workmates. Cutting costs is never popular in any business and it is unlikely to be the directors costs that are cut, you say neither of you are qualified, but why does there need to be two people plus a CPC holder employed? I could save 2 salary costs immediately.

Hook loader / skip lorries are going to be the worst things on the road to be economical on fuel, simply due to the height and the difficult shape, they are running constantly when loading or unloading and they probably have a maze of roads criss crossing the local area. Halifax as well.

Can you get rid of a couple of hookloaders and replace them with drawbar trailers?

[wheel_nut]

hotel magnum:
join the rha, they supply all that sort of thing and update it regularly. and for what you dont know they are at the end of the phone. i have found it money well spent

RHA for haulage operators

FTA for manufacturers and suppliers.

Although in my case I wouldn’t pay either organisations with washers!

For costings there is normally a free cost table in Motor Transport but your business will not be covered completely as they normally only do full weight haulage vehicles.

Basics of Fuel saving.

1. the effectiveness of the routing and scheduling.
2. the fuel efficient driving technique of the driver.
3. ensuring that the vehicle used is correctly specified for the work undertaken.
4. effective maintenance.
5. effective fuel consumption monitoring.
6. maintaining correct tyre pressure.

Can you cut the fleet size and utilise double deckers?

Double deckers will use more fuel but carry more cartons, could you use drawbar outfits for the same reasons.

[specialbru]

You need to do costings for your vehicles and not rely on average costings that are available elsewhere.
These should include all costs including fixed and variable costs for each vehicle and you should be able to get these from the company.

[jrl_driver]

Wheel Nut:

jrl driver:
hi,i’ve got myself a new job as a transport planner at a firm i was driving for,they have 9 artics,1 x rigid 4 wheeler & a 7.5t rigid they also have 4x6 wheeler ro’ro hook loaders.
i am in the process of trying to cut their running costs for their trucks,main 1 being diesel of course.
the hook loader side of the business at the moment,is the most ineffecient in the use of fuel/time etc so i am trying to start there first as i have a lot of experience with this side of the business from working here & for another firm doing the same sort of work…

does anyone have any running costs for a 6 wheeler hook loader,or a ball park figure,ideally i’m looking at costs per mile as i am trying to reduce the amount of mileage the trucks do to & from certain jobs,so i can then show what i can save the company if they are willing to change a few things that they are doing…

i’d be grateful for any info on running cost for any of the other vehicles i’ve mentioned above or if you need any more info please say
thanks
John

I imagine you have picked up a slightly toxic chalice with this job, as an ex driver you are firstly going to have to overcome the problems you will have with your former workmates. Cutting costs is never popular in any business and it is unlikely to be the directors costs that are cut, you say neither of you are qualified, but why does there need to be two people plus a CPC holder employed? I could save 2 salary costs immediately.

Hook loader / skip lorries are going to be the worst things on the road to be economical on fuel, simply due to the height and the difficult shape, they are running constantly when loading or unloading and they probably have a maze of roads criss crossing the local area. Halifax as well.

Can you get rid of a couple of hookloaders and replace them with drawbar trailers?

cheers wheel nut,yes,i’ve gone from being there agency driver to transport planner/warehouse supervisor,the drivers seem ok about it as i can see a lot of things from there perspective as well & understand the hassles they have out on the road & at certain customers sites.i have a few ideas where i an improve things for them with their help.
the hookloaders are the worst for fuel efficiency,1 of the main reasons is that the drivers start @ 5.45,they start the engines up on the trucks & then don’t leave the yard until 06.00,so there sitting idling for 15/20 mins everyday,all 4 of them!!
a lot of other times there just sat about waiting with the engine running for no reason.i know i can save a money that way by getting them into the habit of turning them off when there sat doing nothing but also in how the wagons are routed for their collections & by a couple of other ideas i have.i have driven hook loaders & with a trailer for over 8 years so am familiar with the job & the customers site we go to…they have a trailer but it is used for 1 job to york & back tice a day,so that side is pretty much covered,they could probably do with another 1 actually,which is an idea i am going to suggest.
the wagons are carrying cardboard/paper/printers waste from printing firms,plastics,general waste.
i’ve driven artics for over 10 years on general halauge,don’t profess to be the best or most experinced but have gained a lot of knowledge over the years.i started for a local firm & had to load from 3/4 different customers,plan my route & deliver it all as the gaffer had never been a driver,the haulage side was an off shoot of his hgv servicing business,i really enjoyed it & learnt a lot in a short space of time.going up scotland with 25 drops on for 2/3 days,you soon learn how to plan & get the job done efficiently
1 advantage of being self employed for a while is going round working for different companies & you get to see how they operate & what systems & ideas they use,i have picked up a lot of usefull information there.

the main things wrong with the artic side is just poor route planning,same again,as in leaving vehicles idling for long periods of time,poor admin & daily checks,reporting defects etc & some of the drivers taking the mickey with the time they take to do certain runs & also just a lack of knowledge of drivers hours & rules.
hopefully i can help improve things all round over a period of time.

[simon71]

"jrl driver:
the main things wrong with the artic side is just poor route planning,same again,as in leaving vehicles idling for long periods of time,poor admin & daily checks,reporting defects etc & some of the drivers taking the mickey with the time they take to do certain runs & also just a lack of knowledge of drivers hours & rules.
hopefully i can help improve things all round over a period of time.

This might be contraversial but if drivers are taking the ■■■■ and dragging the job out on hourly rates perhaps you could suggest amending their contracts from hourly paid to weekly/monthly salary. The firm I work for employs around 400 drivers on weekly salary, there are always a few moans from some drivers thinking that they are getting all the long runs but it’s swings and roundabouts and evens itself out over time. We just offer to compare their hours with other drivers on the same shift using Trutac, works every time.

Sound like you’ve got your work cut out so good luck!

[wheel_nut]

Simon71:
This might be contraversial but if drivers are taking the ■■■■ and dragging the job out on hourly rates perhaps you could suggest amending their contracts from hourly paid to weekly/monthly salary. The firm I work for employs around 400 drivers on weekly salary, there are always a few moans from some drivers thinking that they are getting all the long runs but it’s swings and roundabouts and evens itself out over time. We just offer to compare their hours with other drivers on the same shift using Trutac, works every time.

Sound like you’ve got your work cut out so good luck!

This is where it might bite him on the bum, he is saying he gets along with the drivers at the moment, but would they work so easily alongside him if he touches the most precious thing, Wages!

You can probably get away with sleeping with your mates wife or mother, but money is important to drivers

[foxstein]

hammer:
Can’t help you with hookloaders but I run a 6x4 tipper on quarry work in a pretty hilly area. Usually get between 8.5-8.8mpg, sometimes worse, sometimes better.

I work my costs per mile out like this;
Diesel cost per litre = £1.40 x 4.546 = £6.36 per gallon.

Divide your cost per gallon (£6.36) by your MPG (call it 9mpg) = £0.707 per mile.
Less VAT at 20% = 56.53 pence per mile.

You need to make sure that you accurately measure your fuel consumption and that your drivers follow the same procedure each time they fill up otherwise your results will be skewed and you won’t get an accurate idea of where you stand.

sorry hammer, but if you subtract the vat the figure is 58.92 pence per mile, addind 20% then deducting 20% won’t get you the same figure. To get the correct figure you divide by 1.2…e.g. 120 divided by 1.2 = 100. 120 - 20% = 96
Right the bells gone! Have your lunch then back in for double English

[hammer]

Very true, good job I add the VAT on, rather than take it off when I bill my customers or I’d be out of pocket!