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Road transportation business - What are the best practices

posted by: shakthydoss on 2014-08-27
tagged: marketing, india, management
score: 1

Recently my retired father had started a road transportation business (goods carrier) located in India.
He managed to buy a truck with financial support from the bank. We both have limited experience in logistics and transport management.

I am writing now to ask for your suggestions, best practices, tips and advice for us to improve our business.

Also please recommend good starter books for logistic and transport management.

Thanks in advance.

Answer 506

posted by: Avestron on 2014-08-27
score: 2

As with any business it is important to be able to accurately assess:

the projected revenues against the projected expenses.
the projected level of demand for the service being provided (it is good to have expressions of interest in your services from customers earlier rather than later)
the obstacles that might either prevent you from delivering your service or cause you to render it at lower efficiency (weather, regulations, road conditions, cargo transport requirements, etc.)
The cargo requirements (example - if you are transporting sheep then fallen sheep might be smothered to death, also the time-line before perishable goods run the risk of turning bad in what temperatures (presuming not refrigerated - and if it is - calculate how that affects costs))

Since your business is transportation then it is also important to study the road network to determine the most effective routes that may be taken (always have a secondary route - your primary route might, for instance, be afflicted with a 10-car-pileup).

Also, an awareness of the trends in prices and availability not only of fuel but vehicle repair parts/ services is to be considered an asset.

I am afraid that I am not in a position to recommend any logistics-related books but hope that the above gives food for thought.

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