Road transport is one of those industries where costs are too easily compared in
cents/kilometre (CPK) without defining what is included in the CPK figure. In long-term
relationships that have developed over many years, there may be undefined services that
are not clearly visible in a CPK price for comparison purposes.
For example, the use of a back-up unit in case of a breakdown, or a tracking system that
enables accurate and disciplined fleet control – these are issues easily overlooked and
masked by the price/cost perception offered in CPK.
How does one define value in road transport? It is wrapped up in a formula where
transparent services are given a cumulative value and compared to price:
Hiring a truck on ‘price’ alone is missing the point – it is the value offered that will secure
reliable performance and minimum downtime. This is the success of Key Hire.
