Cost Per Mile Definition
Cost per mile is a brilliant way of analyzing your fleet's financial success and deciding how to run it more efficiently. Cost per mile involves comparing your fleet operational costs against the ultimate number of miles your truck operates. A productive fleet maximizes its cost per mile and always reevaluates it to guarantee a continuous improvement in the output.
The best way to do this is by breaking down your operational costs and analyzing your current truck mileage. You can then review and devise the best ways to cut down operational costs and improve the ultimate mileage-based profit.
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Once you incorporate cost per mile in your trucking business, you can easily determine the return on investment in your fleet records on every task it handles. You can also make a more accurate bid on the future loads you wish to transport. Some factors that impact the cost per mile include driver and non-driver compensation, fuel, mileage, insurance, maintenance, and various driving expenses.
Once you have a clearer idea of your cost per mile, you have a better understanding of the exact expenses affecting your bottom line. You can put these expenses into two categories: fixed and variable costs; Fixed costs refer to the regular expenses, most of which have no room for change, such as taxes, insurance, and permits.