If you have delivery drivers then you probably have this issue:
Your insurance company bills you higher fees for your delivery drivers. With one of our customers, the example was $2 per $100 in payroll for staff and $7 per $100 in payroll for delivery drivers. The issue that comes up is that your drivers are not actually driving for the whole time they are on the clock.
Utilizing our XML Ticket export in SP-1, we have the ability to gather data that can let us help reduce your costs. This export let’s us see the total number of deliveries, total time on the road and average time per run. The most important is the total time on the road. In one example with a customer we found that their drivers spent a total of 2,830 actual hours on the road.
When we calculated the insurance rate based on hours on the road and not based on hours clocked in we found a difference of over $1,100!
Want to take a look at this? Give us a call!
Here is something that comes up every once in a while. . . If you have delivery drivers, then you might be paying more in insurance than you need to.
Most insurance companies bill you based on total payroll hours for all employees working the store. Delivery drivers are billed at a higher dollar per hour than kitchen prep or cashiers. This is done because there is obviously more risk when an employee is on the road. The problem here is the you are also paying the higher rate for that employee when they are not on the road as well.
For example . . . Let’s assume your insurance company bills you at $2 per $100 in payroll for prep, cashier etc and then $7 per $100 for delivery drivers.
For this store, they did 7,000 deliveries and 2,830 hours on the road. That is an average of 24 minutes per run. Insurance should only be billed at the higher rate for that payroll that was on the road! By taking the total payroll for all delivery drivers and subtracting out the payroll amount for those 2,830 hours on the road, we can get a true figure of how much payroll should be billed at the higher rate.
In this case, it was an $1,100 savings in insurance!
If you have deliveries, see how we can help you with our XML ticket history report.
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?
So, if you deliver and are curious about what you might be able to save, call us!
Contact us at:
SelbySoft , Inc
8326 Woodland Ave. E
Puyallup Wa 98371