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How to use flat rate pay for better capital utilisation in the transport industry

Transport Freight

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How many hours a day or a week does your equipment or machinery sit idle not making any money? Unfortunately, lease or loan payments need to be made whether or not the equipment is being used. Wouldn't it be great to use less equipment (which means smaller repayments) but still be able to have the same output or even better; in fact to get more 'bang out of the bucks' you already have invested in the equipment.

Our PEO arrangement can do this for you, which will greatly help your capital utilisation. The reason that most equipment stays idle is the costly penalty loading rates for workers outside normal hours. Our system allows for flexible working conditions including flat rate pay 24 hours a day, 7 days a week, 365 days a year. Workers also benefit as they can be given more hours if they want them, which means more money for them. Consider the capital utilisation diagram below;

Currently

40

40

40

40

40

 = 200 hrs

5 trucks working 40 hours a week

Proposed

50

50

50

50

 = 200 hrs    

4 trucks working 50 hours a week

That's one truck's work of expenses you now don't have.

We have already done this for several firms in the industry. For further information please email us or contact us on 1300 766 380.