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Thursday, July 1, 2010

Cutting delivery insurance costs!

Recently, I had a conversation with a customer about his delivery drivers.  He explained to me how his insurance company bills him based on the payroll hours of his employees.

The insurance company bills insurance for employees at $2 per $100 in payroll for kitchen prep and servers and then $7 per $100 for delivery drivers.

The issue that he had (last year and this year) is that the $7 figure on drivers is based on the clock in and out time.  Realistically, the higher insurance rate should only be based on the time the drivers are actually on the road and not based on the rest of the time when they are working inside!

So, the question was posed . . .  How could we help?

It turns out, quite a bit!  Utilizing our XML Ticket export in SP-1, we were able to gather some important data for the insurance company as well as some statistics to help understand delivery.  Over the last year they have had:
A total of almost 7,000 deliveries
Total time on the road - 2,830 hours
Average time of 24 minutes per run
The most important figure was the 2830 hours on the road.  This allowed the customer to show the insurance company that the rest of the payroll for these employees was in house and not on the road.

This resulted in a savings of $5 for every $100 in driver payroll.   The grand total in savings?

$1,100! 

So, if you deliver and are curious about what you might be able to save, call us!


Contact us at:
SelbySoft , Inc
Mike Spence
800-454-4434
Sales@SelbySoft.com
WWW.SelbySoft.com
8326 Woodland Ave. E
Puyallup Wa 98371

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