As the global cost crisis looks set to continue throughout 2022 and according to some industry commentators, the current geopolitical situation which is largely responsible for driving the current increase in costs is showing little sign of improving anytime soon, it is widely expected that energy prices will continue to be volatile well into 2023.
In light of the current situation, Vrio has compiled a list of quick-fix cost saving tips and best practices for transport companies operating in Europe that can be implemented easily and cost-effectively to help counter the increased operational costs that the sector is currently experiencing.
Competition is high in the fuel card sector and your consumptions are valuable to all fuel card operators. Fuel costs currently account for approximately 30% of operational costs for transport companies.
By operating multiple fuel cards, you can review prices from various providers to ensure that you are paying the lowest possible price…. Work with your fuel card providers to identify the cheapest locations on their networks and on your routes. Price differentials between stations and zones can be significant, so it is essential to understand where is best to refill and plan accordingly.
And don´t be frightened to negotiate… That´s right, pick up the phone and speak to your providers and account managers to push them on price, at the end of the day even a saving of 1 cent per liter can have a significant impact on any size of transport operator…….
Take one truck that travels approximately 120,000km per annum, based on an average consumption of 35 liters per 100km, the truck will more or less consume 42,000 liters annually. A saving of 1 cent per liter, simply by fueling in a more competitive station and/or negotiating on price…. you can save up to 420€ annually, multiply that saving across each truck in the fleet and the savings soon start to add up…
Fuel cards also allow you to recover your VAT easily and efficiently through VAT compliant invoicing, this will save you time and money with the VAT recovery process in comparison to purchases made with cash/credit cards where tickets/receipts are issued and normally involve higher processing costs and longer recovery times by VAT recovery providers and tax ministries alike.
Vrio provide a range of fuel cards which cover all EU territories, including the UTA fuel card which has coverage at over 55,000 stations across Europe.
Paying for motorway toll costs with an approved payment device will automatically entitle you to the official discount structures that apply across Europe, these discounts can be as high as 50% on the cash price, therefore these payment methods can contribute to significant savings when travelling across the European toll network.
In addition to the discounted pricing structure, it is also important to consider the benefits that free flow tolling offers, one important factor is the improved fuel efficiency that can be gained from not having to stop and start at each and every toll booth, free flow also leads to a significant reduction in time lost at the toll booths.
As more toll networks are planned to be introduced across the European motorway network, and many networks imposing a pricing structure that is linked to inflation, the cost of tolling will continue to form a significant cost base of international transport operators going forward.
Vrio is one of Europe’s fastest growing toll providers, as an official partner with the main EETS providers, let us tailor our offer and service to your business requirements, call us today.
Knowledge is power, as they say…
There are many route and fleet optimization platforms that provide you with detailed access to a wide range of metrics that really can be considered not only valuable but essential data.
From assessing the best routes with real time traffic data, accurate fuel consumption data, vehicle efficiency, average speeds and driver behavior in terms of cornering and braking…there are many factors that can help save costs.
This data can be used to identify, understand and improve which vehicles and drivers are performing well within the fleet and where improvements can be made, as well as helping to quickly identify any underlying problems with specific vehicles which are impacting vehicle performance.
Eco Driving is not just for Sunday´s…
There is evidence to support that by reducing the average speed of a truck from 90km/h to 80km/h, it will consume approximately 10% less fuel, in turn reducing the litres consumed per 100km by up to 3 litres per 100km travelled, which based on normal driving hours could equate to a consumption reduction of up to 20 litres per day, 600 litres per month or 7200 litres per annum… you get the point, with current fuel prices that is a significant saving for any operator of any size.
By improving fuel efficiency through improved driver behavior, transport companies can quickly impact the operational costs of the fleet, and through improving how driver´s perform when on the road this can also lead to reduced maintenance costs and prolong the life cycle of not just the vehicle but also some components such as brakes and tyres.
Vrio´s in house route and fleet optimization system, aptly named Optimo is one of the most intuitive and easy to use systems on the market, everything from simple tracking through to a fully integrated solution, let Vrio assess your requirements to build a personalised solution around your business needs… let´s Take Control with Optimo.
For transport operators who are based outside of the Euro zone, the cost of currency conversion can also erode margins, especially when traditional banks are involved who tend not to offer the most competitive exchange prices (that is being kind) between currencies.
As many companies are generating costs in Euros from providers and in the form of VAT and Tax recovery, it could be more beneficial to receive and pay your European operations in Euros also.
As most providers will be happy to accept payment in Euro´s and it is easy to open a Euro based bank account, transacting in euros for your Euro based payments and receipts can lead to a significant reduction in your currency exchange exposure over the year.
With the recent explosion of the Fintech sector, we have also seen many companies establish multi-currency platforms and digital wallets which makes it simple to move money around in a transparent and competitive way all with the touch of a few buttons.
Vrio´s flexible accounting and invoicing processes allow you to select if you want to pay in your own currency of the local currency where the services contracted have been used….and what is better, we don’t charge any commissions or surcharges for this service. Call your account manager today to discuss your needs.
It may be tempting to consider cutting corners to try and save a little here and there, but as we have all seen time and time again, compliance is king. With legislation tightening, and controls becoming more commonplace on European motorways, non-compliance is an expensive and dangerous game to play if you are caught.
The European government have made it clear with their new Mobility Package what the expectations are for drivers, their working and driving hours, salary conditions, tachograph details, returning vehicles to base, maintenance and upkeep of vehicles and equipment…. The list goes on, and on and on….
The essence of compliance is less about cost-saving and more about cost-prevention. Fines in Europe are big business for the authorities, where a single fine can run into several thousands of Euros for a transport operator, between the fine amount and the loss in productivity that can inevitably follow.
Vrio provide a range of services from minimum salary reporting, fine management and money forwarding to assist clients who require assistance with these services across Europe. Call us today for more information.
We have all heard the horror stories…once upon a time a friend of a friend was fined three thousand Euros for a dirty and broken wing mirror in France.
Admittedly, the above scenario may be one of ancient transport myth, but the message is crystal clear, the cost of repairs on the continent are not cheap and many operators feel that European workshops inflate the price when they see a foreign plate number pinned to the front of the truck.
By maintaining your trucks and trailers regularly through your local dealer network or indeed with your own in-house mechanics is by far the most cost-efficient way to avoid any nasty surprises on the road.
As we previously discussed, legislation is getting tighter and roadside inspections are becoming more thorough and more frequent.
Don´t leave it to chance, inspect your trucks, trailers and any other equipment you operate to ensure it is good working order, good condition and meets the requirements of the authorities across Europe.
Whilst Vrio cannot assist directly with the maintenance of your vehicles, the UTA card has an integrated roadside assistance and workshop services built into the service package. Call us for more details to activate this service on your cards today!
It goes without saying that if the wheels are not turning, you are not earning. The increased costs of what feels like absolutely everything has put significant downward pressure on company finances and above all…. cashflow.
For companies operating in Europe, one quick solution to ease liquidity is to convert your current EU VAT reclaim to a rapid payment solution, reducing the payment cycle from months to days and without any complicated and binding financial agreements, and normally a much cheaper short-term financing solution than you can find from traditional lenders.
In response to the current economic climate, Vrio has recently launched a new FastVAT payment service, which operates on a weekly payment cycle. Any invoices received before 16:00 on a Friday will be processed and paid to you the following week, meaning that you have the VAT refund before your invoice is due for payment. Call us today for more information about this service.
It is clear that there are a range of actions and measures that can be taken to help reduce the operational costs to protect profit margins. Whilst individually these gains may be small, this “marginal gains” approach to cost cutting across the business will start to add up across time, identifying these gains will be the challenge….and on that note, happy hunting!
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