---

Past Issues

August 2005

---

The FleetWatch Training and Development Academy officially opened its doors to delegates from the transport industry in July, with a two workshops running under the banner of 'A Roadmap to Cost Effective Trucking'. The course material, put together and presented by veteran transport industry consultant Max Braun, a regular contributor to FleetWatch, is designed to give delegates a 'hands-on' learning experience that empowers them with knowledge they can apply the minute they return to the workplace.

Transport operations are built to turn a profit but the industry is so competitive, operators are finding it extremely difficult to stay competitive and have a healthy balance sheet. The Academy deals head-on with the 'nuts and bolts' of running a transport operation efficiently and cost effectively, putting transport management principles and concepts into 'bite-size', easy to understand modules. 
 

Not rocket science
Many operators may consider the 'science' of running a transport operation complicated and perhaps unnecessary. The Academy strives to inform all delegates that running a transport operation efficiently using well-proven concepts and principles is really quite simple and definitely necessary for long-term success in the dog-eat-dog world of commercial trucking. 

Workshop 1, called 'Getting to grips with truck operating costs', is all about understanding the financial basics of running a transport operation. Knowing exactly what your operating costs are (your Cents per Kilometre or CPK), gives you the confidence to charge your customers correctly, neither pricing yourself out of the market or undercharging and running at a loss.

During the workshop, Max Braun addresses a number of issues directly affecting the operating environment, focusing on both the fixed and running costs of a transport business, like cost of vehicle, depreciation, insurance, fuel prices and consumption, tyre costs and driver wages.

Once the concepts have been explained and questions fielded, case studies are presented to the delegates. These serve as 'interactive learning tools', where delegates put into practice the principles Max is teaching. With the help of calculators and teamwork, delegates soon learn that road transport management is about basic business principles and mathematics, all of which has nothing to do with men in white coats loping around Cape Canaveral. 

The factory on wheels principle 
Workshop 2 is called 'Choosing the right truck. How to pay for it and make a profit'. As most of us know, the new truck sales industry is booming. What is not so widely known are the multitude of purchase and financing options available, their benefits and potential pitfalls. In this module, Max goes into great detail describing what a truck buyer should consider before taking out the cheque book, like what the new vehicle will be used for, where it will be used and who will be driving it, as well as an analysis of optimal purchasing options, be it buying, leasing or renting. He then explains the philosophy that should drive every trucker - that once a vehicle is purchased, it becomes a 'cost centre', a depreciating resource that must be utilised and managed efficiently in order to be profitable. 

In essence, the workshops 'demystify' the economics of transport and with lively exchanges between Max and the delegates, a broad array of issues are investigated and ultimately 'rationalised'. As Max so wisely says: "A truck is a factory producing ton-kilometres. It produces them every day. If you don't use them, you lose them!" 
 

Positive feedback
Delegates from a number of well known transport and trucking organisations attended the workshops and hearing what they think of the course content speaks volumes:

Pieter Bester, Coca Cola: "Definitely worth it. Will recommend it to anyone who is interested in the transport industry. We were able to ask questions freely and learnt a lot like that. The first day has a lot of theory and one should have at least some knowledge of transport, as some of the ladies who attended were out of their depth on the first day."

Henning Coetzee, Coca Cola: 'Very interesting, lots of detail. A must for anyone in the transport industry. Even my father, who has been involved in transport for ten years, would be able to learn something."

Alfred Lehutjo, Coca Cola: "Max Braun said: 'When a truck is standing in the yard you are losing the opportunity to invest'"

Ronel Wolfaart, Imperial Fleet Services: "The section on Full Maintenance Leasing was very interesting and what I've learned from the course will be very useful."

Jaap Breedt, Sasol: "The workshops reinforce the basic principles of transport. I feel I've been sensitised to what's fundamentally important in a trucking operation."

Wilna Groenawald, International Delivery Company: "I've acquired a better understanding of how to deal with our customers' needs and of the product we're selling."

Deon Smith, Coca Cola: "The emphasis with Coke is now on distributing for profit 
and understanding the economics of trucking really helps."

Bodhan de Wet, Volkswagen SA: "I'm pleased to see there's so much interest in these workshops, being a new entrant into the heavy commercial vehicle market."
 

---