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Gents,
We have manually closed all shipments for April, therefore this issue will not be around next month. I am attempting to discover how many loads that were not closed correctly have not been claimed & will provide an update as soon as I have determined the best course of action without generating more work for myself with duplicate payments.
Regards
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Gents,
This notice is merely an additional reminder to back up the message that appears on the Sundry Tool itself. Hopefully that notice went up a lot earlier than the day before cut off.
Regards
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Gents,
Both sides of changing the sundry rates or not changing the rates was discussed around the country last year. Obviously with differing views at different locations, I can manage the rates either by them fluctuating or not fluctuating however with the rate itself changing based on fuel it seems only right that the other elements that have valid formulas change also.
Rest assured that when fuel goes up the rates for these sundries will go up as will the load rate, it is pointless having a standard formula then not using it both ways, in the same way that in a volatile fuel market it is counterproductive to have either inflated or deflated sundries that have fuel elements in them not move for over a year.
From a logical standpoint if we do not move them as fuel fluctuates then in a market such as this come the time to renegotiate the new rate will either be loo low against current for the IHC community to accept (when fuel is dropping) or too high against current for CEMEX to accept (when fuel increases). Generating our age old problem of lengthy negotiations.
The method of moving them along with load rates is by far the fairest way of dealing with the issue as it means that the rates follow your actual costs as & when they change.
This of course does not mean that we will never ever discuss the formula for these sundries & or others as I firmly believe that we still need to fine tune the transfer formula & determine whether there are similar formulas we can use for other sundries.
On the subject of Euro 6 vehicles we have had 25 new 6 metre vehicles go into the fleet since April 2015 this will have had a positive impact on the average 6 metre 5 radial rate and can only further improve as more new vehicles go into the fleet.
Regards
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Paul,
The guaranteed day included in the offer this year was 5 loads at a 5 radial averaged across the UK 6 metre fleet (excluding London), this is going to be the mechanism moving forward & this means that the guarantee will move as rates go up or down, in general it is rare for the rates to go down so this change is as a result of the fuel rate being lowered as mentioned above.
What this does mean is that having agreed that 5 loads at a 5 radial is a fair guarantee that we will not be debating over what it should be in the future. So as the fleet gets newer the average will rise, when we are agreeing rates next year the proposal will be at the average at that time. With hopefully more new trucks on the road the guarantee will increase.
This is by far the fairest method of calculating what the guarantee should be & ensures that it moves every year in line with rates.
Hope this helps explain the situation
Regards
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Paul,
It is not as simple as just passing on a saving to the customer. As with any business CEMEX had a budget at the start of the year with lots of targets.
All of these targets are monitored and include;
Haulage Cost targets (which included a fuel cost reduction in the budget anyway)
Average Selling Price targets
Volume targetsetc etc
Not all areas are meeting their targets as we all know, volume being the one that impacts the IHC fleet the most. Some areas are not hitting their targets in terms of haulage cost & others in terms of average selling price.
The change does however provide the areas of the business with more options to deliver more volume to the fleet. If there is less pressure on haulage cost as a result of fuel reduction then we can target work slightly further away whilst still meeting targets or we can selectively sell below average selling price and still come in on target.
The process to gain extra volume if required will be different in each area and will depend on local circumstances, however I would suggest that you request from your ops super or cluster manager a briefing on how your local business is doing & what is in the pipeline for the future.
Regards
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