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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