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Hiring a outside transportation will be profitable than having on our own transportation in retail business- logistics?

Saudi arabia ( low fuel cost ) + Consider material insurance cost + Maintenance cost

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Question added by Shaik Alavudeen Amanullah , Business Development & Operation Executive , Saadi Saad Al Harbi & Partners Company
Date Posted: 2017/04/23
Ghareeb Al Subiani
by Ghareeb Al Subiani , Material Management Manager , Middle East Specialized Cables Company

Beside the cost take in your consideration the benefits I mean customers satisfaction important than saving money. You most doing hard study before taking the decision.

Abdullah Aziz Eldain Morsi  Elgendy -        CMA  Candidate
by Abdullah Aziz Eldain Morsi Elgendy - CMA Candidate , Regional Receivable Accountant , Amiantit Group of Companies

 the comparison between using the own ones and hired is which of them  make the cost low with satisfied return

1- to imply on the company  transportation , based on the available budget  set from the firm   the you have to plan method of the transportation  cycle to avoid the break downs , the late  charges , the extra maintenance, the absence of drivers ,  to make  the invested capital without unused amount ,

2- to get hired you have to reserve money to  invest outside instead of the high  cost of owing  afleet 

 in fact the decision is created based on the nature and status  of     the firm  at all not  standard  base      

   

Mohammed Awad
by Mohammed Awad , Regional Supply Chain & Operations Director , Tamakkon Co.

Some maths need to take place to calculate the running cost of your own fleet against the 3rd party Logistics fleet.  You need to make lots of calculations as this is a one way ticket calculation and you do not want to be in a bad situation.

Shaik Alavudeen Amanullah
by Shaik Alavudeen Amanullah , Business Development & Operation Executive , Saadi Saad Al Harbi & Partners Company

Based on company capital investment and business growth.

In retail industry, having own transportation will help to improve your sales by quoting some offer such as " free delivery" on or above some fixed value .  Those cost were certainly added in the material costing in primary pricing.

Mahmoud Abdel Aziz CMA
by Mahmoud Abdel Aziz CMA , Finance Manager , Pan Gulf Telecommunication Co. - Pan Gulf Holding Co.

nothing is standard

1- if you are sure that your work capacity will utilize your resources capacity without any idle capacity - then you can use your won fleet.

2- if your work capacity in growing stage, then it is better to depend on a rented company and i prefer if you can acquire a full logistic solution which includes warehousing and transportation services

 

Ashraf E. Mahmoud (PhD)
by Ashraf E. Mahmoud (PhD) , University Lecturer, Freelancer Consultant and Trainer for Int'l Business & Banking TF. , FreeLancer

Thanks for invitation,

In most cases "YES", as this will minimizing transportation and logistic costs in addition to the propre handling and delivery.

Chiranjib  Roy Chowdhury
by Chiranjib Roy Chowdhury , Head-Audit & WMS (Retails) , Perfect Lifestyles Pvt Limited

Obviously if you hire Transportation form outside it will very cost effective

1. Cost Reduction

2. No over head Burden

3. Maintain proper Track of Record then it will go for good profitable

4. Build a good communication skillwith the Lower to Upper Grade

Abdul Sattar Abdul Rasheed
by Abdul Sattar Abdul Rasheed , Supervoisor , M/s. Samara Trading Company

Thank you for the invitation.Yes,this depends upon quantum of retail business.This has to be accessed by cost controller.Having own vehicle have lot of obligation & attracts its own basic requirement which is fixed exps. Hired vehicle nothing have exceptpay

Zulfiqar Ali
by Zulfiqar Ali , HSSE and Vehicle Maintenance Manager , Rasch Private Limited (Shell Pakistan Limited)

If you hire a transport from out side sources and takes its commission, it will be a fruit ful for company. However, please contract with them that all requirement/standard of company should be implements. Company should make own standard keeping mind latest requirement/safety standards of transportation.

If your make own transport then it will be more profitable, but management / staff should be qualified.

Prabin Rai
by Prabin Rai , inventory officer , bijaya motor

Agree with all answer given by export...

Marwan Saba
by Marwan Saba , Executive Manager , AL Sultan Sweets International

This is a very general question, In the long term you need to have your own fleet you can lease a few of them, but in the short term it is profitable to have lease option.

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