Car Tax v Fuel Tax – which is the fairest?
31st March 2012
Car Tax v Fuel Tax – which is the fairest?
Car tax is a fixed cost; it may change from car to car but isn’t based upon how much you use the car. Whether you use the car a minimal amount or constantly, the price paid is equal.
Activity based costs are like fuel tax, you only pay for what you use. Car tax is like contract logistics, which means there’s no incentive to improve the operation if a contract is by the hour.
2008 delivered a huge blow to the global automotive industry. With multiple car manufacturing plants extending shutdowns and working on reduced hours to reduce costs.
Then came the shock, there was one cost most manufacturers couldn’t cut
Even though the workload had dramatically reduced, the logistics contract remained the same. This meant a set fee was invoiced every month. The contract was centered on the current contractor performing a number of standard key activities at a fixed cost. This was fee charged whether required the activities needed to be carried out or not.
Here’s how the 360 onsite logistics audit and assessment works!
Put us to the test, what have you got to lose?
Contact us for a FREE ‘on site' logistics audit – carried out under a non disclosure agreement - our findings will be reported in full confidence and will provide a detailed analysis of where savings and improvements can be made.
There’s only one condition - you must be UK based and be operating in the automotive sector, with a head count of around 25 - 30 or more operating in logistics roles.