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Strategies for Profitability in European Road Transport

May 2006 | 80 pages | ID: S70009A6589EN
Analytiqa

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The Strategies for Profitability in European Road Transport report focuses on the flow of goods around Europe and the factors which impact on the profitability of the fleet operators that execute this economically critical activity. This report allows you to analyse product flows by country and provides forecast trade flows by road, rail and water in Europe.

In a highly competitive and tough trading environment, performance management is more crucial now than ever in ensuring commercial success. Arguably this is an area that has not had as much of a focus for fleet operators in past years as it should have had. This report analyses the three main indicators of fleet performance, namely revenues, volumes and margins.

For fleet operators increases in revenues do not necessarily correlate with increases in margins and nor does volume of goods transported correlate with margins or revenues. This report analyses the key performance measurement criteria in terms of the size, geographical scope and mileage of a company's operational profile. A key indicator from this analysis that is explored within the report in more depth, is the correlation between business performance and vehicle mileage. Is there really any substance in the age old adage when the going gets tough, the tough get going?

Whilst over 70% of fleet operators interviewed by Analytiqa use some form of Transport Management System (TMS), technology is an area where fleet operators are beginning to question the wisdom in spending vast amounts of capital on systems that don't improve what is inherently a weak operation, by design or default.

Are these systems really delivering value to the bottom line, or are they simply another expense draining what are already limited capital expenditure budgets?

Do operators consider these systems essential and if so, why?

Analytiqa has put these questions directly to key executives in this sector, in the context of an unbiased and independent interview.

The report identifies strategies for future growth and highlights the relative importance of the following requirements for operators in achieving future commercial success:

Niche sector focus

Understanding of customer requirements

Development of business operations

Expansion of geographical operations


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