Why professionalize your Transportation operations.

So important is transportation in the supply chain that it represents a significant cost for the producing companies, a cost that can sometimes even determine if there is a profit or loss based on the transportation expenses generated.

For this reason, the EFFECTIVE MANAGEMENT OF A TRANSPORT COMPANY HELPS TO GENERATE CONFIDENCE TO THE CLIENT SO THAT HE DOES NOT GO WITH ANOTHER COMPETITOR AND HELPS THE PRODUCTIVE COMPANY TO BE MORE COMPETITIVE IN ITS COSTS BY THE INTERNAL CONTROL OF THEM.

When we enter to PROFESSIONALIZE YOUR TRANSPORTATION OPERATIONS, we always detect that the main problem is that the decision-making made by the management team or the owner is intuitive.

Many carriers do not have a culture of planning, they are only dedicated to trying to control income, expenses, and utility, but this is very relative more when the information is not reliable, for example, the consumption of fuel can represent up to 35% of the total cost, it is the most relevant cost and if the area that controls it and the one that pays it to have to differ generates uncertainty as to whether or not the percentage reported is reliable.

Another symptom is the ignorance of employees about the activities and responsibilities that are assigned to them and do things that do not go with the activities defined for their position in most cases, functions are duplicated and do not deliver the expected results, this seriously affects since the manager of the area or owner ends up getting involved in solving the problem and stops doing their activities causing frustration.

Our concept of professionalization is to help our clients in defining, implementing, and validating a management system to be able to make analyzed decisions with all the resources delivered and validated in a timely manner.

With Management System we refer to define the following:

· Goals by process and area based on Strategic Planning,

· Responsible (Organization Chart).

· Management system based on key processes,

· Performance indicators by process/area,

· Operational Cost Reduction,

· Reliability of the information system,

· Control of income and expenses, and

· Accountability.

These concepts will allow the entrepreneur to delegate decisions to his management team and be able to focus on more strategic situations (he will be able to contact more customers, analyze investment of resources for the increase of his vehicle fleet, etc.) and not worry about operational or administrative problems since they will have a management system implemented that allows you to verify and analyze in an orderly, reliable, and agile way the results of your company.

Benefits of a professionalization:

· Generation of Annual budget and its follow-up,

· Increase staff competence,

· Measurement of process efficiency based on objectives.

· Increase revenue and profitability,

· Reduction in costs and expenses,

· Reduction of money leakage,

· Have a reliable information system (Accounting and Finance),

· Have an accountability aligned with the company goals.

Many times, customers require us to enter to solve problems that for them are critical, so our models, methodologies adapt to the current management of the company and improve it, making the right changes.

We decided to start a series of articles to provide a little value to entrepreneurs describing our consulting services, so in the coming weeks, we will present topics related to our MODEL OF REDUCTION OF OPERATIONAL COST, the first chapter is AVOID THE THEFT OF FUEL !!

Don't miss it!! and if you have questions contact us through our official channels.

Author: Carlos Alberto Avila Ortega .

Date: April 28, 2022 SGC Logistic Consulting.