ZIMSEC O Level Commerce Notes: Transport: 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.
To access more topics go to the Commerce Notes page.
Quick NetOne, Telecel, Africom, And Econet Airtime Recharge
If anything goes wrong, click here to enter your query.