T40 Technologies is helping transport service businesses to cut down on costs and increase revenue in Sub-Saharan Africa.
Attracting unnecessary costs can come in many different ways. They can come in the form of extra expenses that you are sustaining constantly but may not find a way to stop – like with incentive-driven marketing techniques that linger and incur operating costs but ought not to be there, or from a lack of structure and measures to ensure accountability – which results in inside theft, or even expenses that can be avoidable but tagged as miscellaneous activities.
Another form linked to running up your operational costs is when you could be creating more revenue from the resources at your disposal – yes, this applies to any established business that wishes to grow – you will find a lot of transport service operators caught in this situation, using outdated structures and systems. And for a third and slightly more interesting case, are the costs that you are totally unaware of but are steadily costing you in resources, time, and money – to add to it, they are usually very avoidable too, this can be from resources you could cut back on operating at a much leaner scale possibly more suitable for your business.
From a journal produced in late 2015, which focused on the competition and choice of bus operators in Nigeria using data from major transport service operators who also operate internationally, the level of competitiveness among the transport providers has increased because of the various strategies they adopt to attract customer patronage and stay in the competition - this represents one of the most common ways to sustain costs and losses. These strategies attract expenses, and in very common cases these businesses sustain losses that are sometimes heavy with time. Fortunately, in most of the cases, costs come in the form of expenses you can avoid by making use of other proven systems and methods, one of the most effective – using more affordable digital tools or systems.
Cutting down on costs is a strategy and profiting venture on its own. It will take skill and a combined organizational effort to achieve it, here are 5 ways you can do so.
5 Ways You can Cut Down on Costs
- Create a Vision. Working with a vision is there to serve as a guide for what you want to see in your business, in the present and in the future. This plan will cover how your intercity transportation business develops over time. It will map out key indication areas for possible growth, and these areas ideally should be explored. Then consistent progress will be made by implementing strategies to help drive your operations to meet this set vision.
Creating a vision will let you know the level your organization currently operates at, where it needs to be, and what it has to do to get to this promised land. Getting this vision across to everyone in your business sets a collective goal for everyone to achieve and gives them their roles to play. Similar to the cogs and gears in every vehicle that work in unison to drive it, each person committed to your transport service business will know to influence the process.
- Using Technological Support. We might not realize it or acknowledge it, but the road transport industry continues to rely heavily on technology. The use of automobile technology has been the backbone for this industry since it was formed, playing a huge role in simplifying what would otherwise have been astronomically resource-intensive activities transporting people. It is easy to see why there is such heavy dependence on this particular technology knowing it forms a crucial part of their business practices – making things easier, creating reward and is considered safe. Without this technology, this mode of business crumbles.
There have been transport service operators who have called upon the use of even more modern technologies to support their businesses, like retailing online and using digital systems. These technologies have gone on to become a crucial part of their operations and adds to their revenue stream. For some, it has come as an avenue to diversify their operations and income, and as well as adding more structure and methods to their activities.
Technology has been the driving force behind most recent success stories in the road transport industry because it is constantly encouraging change, innovation and competition. As such, a digital operations system can influence your business keeping you ahead of your competitors, and give your transport company the advantage. It can help grow your customer base and revenue, go as far as improving the overall journey for your customers, it has the potential to significantly decrease costs by simplifying operations, adding more sustainability to your business, and ultimately positions your outfit to succeed in an increasingly competitive market.
Using technology benefits both customers and businesses alike. A digital operations system is readily available to the customer 24/7 and attends to their need for quick and hassle-free purchases and delivery. On the other hand, it assists the operator’s business through providing management of their inventory, sales, operations, customer management and marketing, plus a lot more, all in one single platform.
Unfortunately, running your own digital operation system can cost you a lot in expenses and resources. Finding the human talent to work with such complex systems is a task in itself and setting up the infrastructure in terms of software tools usually will run your expenses into the minus. Setting up with a platform like the one T40 has in store, will save you costs and resources which you would incur doing it on your own - it will let you focus more on running your business overall.
Technology has since been proven justified, cutting costs and resources, and being very profitable, so why not adopt it?
- Adopt New Business Strategies. Again, if there are avenues to clearly increase your revenue and one does not make use of them, you are losing potential resources and cutting no costs. Most of the players in the industry do not have a clear picture of how to make increased income using other means or systems with the resources they have. But while a good amount have an idea, some rely only on the revenue out of ticket fares and frankly do not know how to implement their ideas, while some are too cautious to venture into new ways even though they have been proven to work.
Adopting tools like loyalty programs would save you from losing revenue from existing customers patronizing your outfit and you get to keep them around through this program. Trying on a new dynamic pricing system can do well to boost income and create more flexibility for the customer. There are many things to try.
- Increased Professionalism. Leaking income from certain areas also comes from a lack of professionalism and misconduct from your workforce. This can be avoided by encouraging more accountability, and employing strict rules and best practices that keep organizational conduct at a high level and help protect your business from inside theft, adding to its growth in the long run.
One practical way to keep track of your inventory and maintain accountability is through the use of digital systems that save records about your business activities and help you investigate discrepancies and red flags, which you will find using T40’s digital operations system. Also encouraged, is the use of excellent customer service.
- Critically Assessing and Tweaking the Performance of your Operations. Thoroughly understanding your operations can go a long way to saving you money, especially when it comes to route planning and creating schedules. Ensuring you maintain an optimal outcome in the way you manage your fleet simply creates profit and prevents losses.
Fortunately, the one tool capable of granting you access to information and data about your routes and operations in real time, is a digital operations system. Through its data, you can consolidate and organize your operations to create the best possible outcomes generating revenue while saving you from potential losses.
Information like the number of passengers plying a route in a particular month can give clarity on how to operate once that month comes by again. Most traveled routes over a short period would provide insight to routing more buses along that route. Using the data, there is also the chance for better travel time management, towards a suitable service to more customers. Similarly, with data that helps you plan ahead, you can attract potential customers through better positioning in terms of routing and distribution.
T40 Technologies is offering road transport operators a limited 60-day free access to their suite of digital products. Experience T40’s digital operations platforms as it helps your transport service business cut down on costs and increases revenue.