Friday 2 September 2016

OWN FLEET OPERATION




Most of manufactures, wholesalers and retailers prefer to operate their own fleet of vehicles to deliver the good for them. Such vehicles may be owned, leased or hired by the firms.

Advantages of own fleet operation
1.   It could be cheaper than using transport firms vehicles.
      2.   Own vehicles can carry free advertisement for the firms.
3.   The vehicles are always on hand. Therefore, the traders can use them at any time to carry the goods.
4.   The firm can use its own drivers which reduces the risk of theft and damage.
Disadvantages of own fleet operation
      1.   More capital could be needed.
2.  If the vehicles are not fully used it would be more expensive than using road transport firms.
3. Additional cost for servicing employment to drivers, garaging and licensing the vehicles are created.

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