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The work of
a traffic office by S. E. Bradburn
Good records, an accurate costing system, polite and efficient staff, and an early invoicing system can pay dividends in running a transport company, whatever the size.
A GOOD SYSTEM of traffic administration will be equally suitable for any size of haulage operation, from one vehicle upwards. The system described resembles that used in any number of companies.
The majority of traffic inquiries are made by telephone. This is the first contact with a potential customer and from the ensuing conversation he will gain his first impression — good or bad — of the organization.
It is important, therefore, to ensure that staff delegated to deal with telephone inquiries are trained to do so politely, effectively and without delay, especially under duress. Perhaps the most difficult but very important part of this is the ability to say "no" politely but firmly, when the occasion demands.
Customer information The maximum amount of information must be obtained from the customer at the outset. Special requirements of loading, transit, protection from damage or weather, peculiar properties of the load, delivery constraints and so on should be established during the initial conversation in order to avoid problems when the job is done.
To ensure that nothing is overlooked, a standard telephone inquiry form should be compiled incorporating a simple check-list of information required. Completed during the intial telephone conversation, it becomes the foundation of an efficient administration system.
Every inquiry should be given a job number whether the work is obtained or not and the rate quoted recorded on the completed form. From this a written quotation which includes or draws attention to the operator's conditions of carriage can be sent to the customer.
Despite some argument to the contrary, most jobs will be obtained with the rate as the primary consideration. It will be appreciated therefore, that an accurate costing system is essential for accurate and efficient rate quotation. Commercial Motor Tables of Operating Costs can be used as a basis for establishing a costing procedure.
Over a period of time, standard rates, either for a particular customer or for a type of traffic, will be established. Occasionally, loads will be offered that will be compatible with existing flows of traffic and, as such, are attractive. The person quoting rates should be aware of what is involved and be able to judge work on its merits.
However, work at a low rate which might be attractive on occasions can be undesirable in the long term. It is important for the clerk to know exactly the limits of his power to make decisions and at what stage he should refer an inquiry to a senior colleague for decision.
For convenience, all rates quoted should be transferred from the original inquiry form to a card index so that it is easy to refer to them during a telephone conversation. This should prevent anomalies in rate quotation and ensure that everything quoted will fit reasonably into the general rate structure.
Traffic records for a small fleet can be kept on a single daily sheet. The exact form of this will depend on the kind of haulage the company operates. For heavy haulage, such as the transport of abnormal and indivisible loads for example, the headway is relatively long and only am and pm divisions might be necessary.
Highly intensive or multi-drop work might require a more detailed record involving an hourly or shorter breakdown.
Daily sheet The daily sheet should reflect the use of vehicles and staff each day even if the vehicle is off the road or a man is absent through sickness. It must be kept up to date so that items do not get forgotten and staff not normally active in traffic operation can take over if necessary and easily assimilate the current position.
Each entry should include the job number so that a check of work performed and reference made to other records can be made in the event of subsequent claims or proof of delivery inquiries.
Ideally, the daily sheet should be kept in a loose-leaf type of book so that it can be passed through for invoicing as a single entity. Forward entries can also be made to ensure that a vehicle ordered by a customer in advance is not overlooked.
It is important to keep the customer informed if things go wrong, particularly if there is any doubt that a vehicle ordered for a certain time will arrive promptly.
Sub-contracting This, perhaps, introduces another area for consideration, that of subcontracting. There are two basic ways in which this can be done.
Either the operator refuses to over-commit his resources and offers to assist the customer to find an alternative haulier or he can accept all work which is offered and try, himself, to find an operator who has spare capacity.
The first method has more to commend it. It is more likely to help to retain integrity and customer goodwill. The customer is more likely to gain a good impression of service and willingness to help. Moreover, the customer has the choice of accepting the alternative and knows where to direct his inquiries and claims.
The second method has obvious dangers, principally that of abstraction, though a haulier with a competitive rate and good service should have little to fear in the long run.
VAT requirements Invoices should be prepared and dispatched as soon as possible after the job is completed, especially where a manual system of invoicing is in operation. In any case, VAT requirements demand that invoices are rendered within 14 days of job completion. Apart from the obvious disadvantage of delay in settlement, delay in invoicing can lead to loss of revenue from additional charges such as demurrage. Thus it is essential to confirm details of the completion of a movement to a customer while the facts are fresh in his memory.
Invoicing can be initiated from the daily traffic sheet and the details of rate quotation and so on obtained by reference to the rate or quotation files. This is made easier because the job number has been recorded on the daily sheet.
To comply with Customs and Excise requirements in relation to VAT there are certain details which must appear on an invoice. Details of these can be obtained from HM Customs and Excise VAT General Guide No. 700, Tax invoices for outputs, page 53. Apart from these, however, the invoice should be as detailed as possible to avoid delay in settlement.
For a large concern to receive an invoice which simply states that on a certain date a haulier moved 10 tons from A to B at a charge of so much is to invite delay.
It is frequently possible to establish contact with the person processing invoices within the customer's organization from whom information about the kind of detail required can be obtained.
Some consideration might be given here to the cost to the operator of giving discount for prompt payment. When it is appreciated that prompt payment usually involves about six weeks' delay -invoices raised in the middle of one month might be paid at the end of the next — then it is obvious that it is costing the operator money to subsidize even this promptness.
For instance £1000 borrowed at, say, 12 per cent interest incurs 15 in interest in six weeks. Alternatively, if the operator is using his own money he should be looking for a 15 per cent interest and the cost of allowing six week's credit on £.1000 becomes £18.75.
If the rate charged reflects the true cost of doing the job plus a reasonable profit then the customer should be prepared to pay promptly without discount, or the cost of the credit he enjoys should be reflected in the operator's charges.
Finally, accounting records must be kept for at least three years to comply with statutory VAT requirements. Failure to do so will render an operator liable to a fine or imprisonment or both.