Advantages and Disadvantages of a trader owning their fleet of vehicles

Advantages to a trader of operating own fleet of vehicles.

• Goods can be collected and delivered at any time.
• Goods in transit are safe from theft and damage
• Minimises the delays of goods which are ready to be ferried.
• There is personal contact with customers
• The delivery persons:
• Can deal with queries from customers.
• Have good knowledge in handling the firm’s products
• Conduct transaction en route e.g. sell more goods, collect payments, collect crates for example a bakery vehicle.
• Return loads are possible e.g. empties and crates.
• Can advertise on the sides of vehicles.
• There are special vehicles for special cargo.
• Vehicles can be hired out to earn extra income for the trader.
• The status symbol of running their own fleet of vehicles.
• It is cheap and cost effective if the vehicles are adequately utilised.
• Can be used to ferry workers to and from work.
• Independent of public transport strikes and delays.

Disadvantages of a trader owning and operating their own fleet of vehicles.

• The initial capital cost of buying the vehicles is high
• High maintenance and servicing costs.
• The vehicles depreciate in value.
• High insurance costs for the vehicles.
• The vehicles may be underutilized especially if the fleet owner is a small business with infrequent deliveries to make.
• The vehicles may be misused.

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