Well, there's a point. You can make a profit in the trucking business, buying ramshackle bangers and running thin into the ground with the minimum of maintenance permissible by law (and, all too often, less); or by taking the Eddie Stobart route of buying top-of-the-range kit and training both the drivers and the maintenace technicians to the highest standards in the industry.
The de minimis approach breaks down in any business that competes on quality - for employees as well as for customers - and is all to often a recipe for failure when competing on cost: efficient production requires investment in staff and machinery.
Effective cost-cutting is an essential commercial discipline; indiscriminate cost-cutting is bad management and the sure and certain route to a permanent loss of competitive advantage and eventual closure.
I would add that Stobart's are the most profitable freight haulier in the transport sector.
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timeasmymeasure
no subject
Date: 2007-07-12 08:49 pm (UTC)Well, there's a point. You can make a profit in the trucking business, buying ramshackle bangers and running thin into the ground with the minimum of maintenance permissible by law (and, all too often, less); or by taking the Eddie Stobart route of buying top-of-the-range kit and training both the drivers and the maintenace technicians to the highest standards in the industry.
The de minimis approach breaks down in any business that competes on quality - for employees as well as for customers - and is all to often a recipe for failure when competing on cost: efficient production requires investment in staff and machinery.
Effective cost-cutting is an essential commercial discipline; indiscriminate cost-cutting is bad management and the sure and certain route to a permanent loss of competitive advantage and eventual closure.
I would add that Stobart's are the most profitable freight haulier in the transport sector.