Having a busy flow of orders and purchases from your customers may seem like a profitable result that is growing your business and profitability. However, you may not be as profitable as you think when it comes to your home health care deliveries. Just because product margins are profitable and selling well doesn’t mean that you are maximizing profits or even making money on an order. Delivery costs could be eating away at your profits and cutting into the margins that may appear. Here are some hidden costs that could be hurting your profitability and can be solved with the right HME and DME Delivery Software Solutions.
Fuel Costs Could Be Hurting Your Profitability
Time is money and it’s even more money when your drivers are sitting in traffic or driving inefficient routes when it comes to delivering your medical supplies. Avoiding high traffic areas or times that slow down your delivery process can reduce fuel costs that you may not be aware of. In a previous article called Fleet Management Improvements That Can Affect Your HME and DME Business, we discussed how it can cost you about 15 cents a mile in fuel and when you tack on a delivery truck running jammed up in traffic, it will only add to the cost per mile as well as driver time. With a solution like Curasev’s Delivery Management you can lower your fuel consumption with efficient route planning that can avoid heavy traffic and keep drivers on the right course without unneeded miles or idle time delivering medical products.
Your Fleet Size Might Be Too High
Your fleet size may be too high and you might not even know it. Without the ability to view each driver’s route in one place at one time, it can lead to unneeded hires that could easily be avoided with the use of a Delivery Management software. The right solution can identify deliveries that are in a specific area which allows you to set up a driver’s day of deliveries that are nearby and maximize their time. This ability can help you avoid payroll expenses. If you have 10 drivers and cut each of their driving times by 10% it would save you from hiring an additional driver. So instead of having 11 drivers running inefficient routes with added fuel and mileage expenses, you’ll have 10 drivers with less fuel costs along with faster deliveries.
Avoiding Hidden Overtime Costs
Oh no. It’s 5:00 PM and your driver still has 2 more deliveries left to make after their full shift. Overtime is now in effect and adding to your payroll expenses that you did not plan for when it comes to your profitability margins. Luckily it can be avoided when you plan routes efficiently and are able to capture a driver’s location in real time. This allows you to see trends and avoid reoccurring overtime deliveries. By identifying that a driver may have too busy of a delivery schedule or locations are too far apart to fit in a day of scheduled deliveries it will allow you to avoid pesky overtime expenses. Curasev offers the ability to view each driver’s route and balance and schedule routes that can keep deliveries on schedule without hidden overtime costs adding to your expenses.
Uncover these hidden costs and more with Curasev’s HME and DME software solutions. Check out our home health software that provides intake management, inventory, delivery management, analytic and revenue cycle management. Visit our website or schedule a demo to learn more and make care complete.