Fleet

ERP for transport and logistics: cost per trip, not cost per month

ERP for transport and logistics: cost per trip, not cost per month

Transport companies usually know their total fuel bill, total maintenance and total payroll. Far fewer can say what a specific trip cost against what it was charged, which is the only comparison that tells you whether a contract is worth keeping. Everything else is an average hiding the contracts that lose money.

The trip is the unit of account

Fuel, driver hours, tolls, maintenance accrual, depreciation and any subcontracted leg belong to a trip, and the trip belongs to a customer and a route. Once that structure exists, the questions management actually asks become reports rather than investigations: which routes, which customers and which vehicles earn their keep.

Fuel reconciliation, done properly

Fuel cards, tank issues and cash purchases compared against odometer readings and planned route distance. The comparison is simple arithmetic and it is the single most common place a transport business is losing money without knowing it. Most fleets reconciling this for the first time find a vehicle or a route that does not add up.

Proof of delivery is a billing document

An invoice disputed for lack of a signed delivery note is cash sitting still. Capturing proof of delivery on a phone at the point of handover, with the signature, the timestamp and a photograph where needed, attached to the trip and the invoice, removes the most common reason freight invoices age past terms.

Accessorial charges are the revenue most often lost

Waiting time, detention, multi-drop, overnight, return loads and handling. These are agreed on the road, recorded on paper if at all, and frequently never invoiced. Capturing them against the trip at the moment they occur is one of the few changes in logistics that adds revenue rather than reducing cost.

Subcontracted carriers need the same arithmetic

When demand exceeds the fleet, work goes to subcontractors, and the margin on that work is thinner and easier to lose. Holding their rates, the job they carried, their invoice and any claim against the same trip record is what stops subcontracting from becoming a volume business with no visible profit.

Driver documents and hours

Licences, permits, medicals and visas expire, and a driver stopped at a checkpoint costs a delivery and a customer's patience. Expiry tracking is the cheapest control in this sector to put in place. Hours worked matter for the same reason they matter in safety: the schedule that looks efficient on paper is often the one that cannot legally be driven.

Start the conversation

Want this working in your business?

Book a consultation and we will map what this looks like on your systems, your data and your team.

WhatsApp us