South Africa is home to Table Mountain, the largest man-made forest and the economic powerhouse of the African continent. It is also home to some of Africa’s largest and best-known cities… Johannesburg, the lightning, gold and diamond capital of the world. Cape Town, the mother city that’s known to hold some of the most beautiful sites in the world. Durban, the fastest growing economy of the continent and last but not least, Pretoria home of the Voortekker Monument and the largest collection of jacaranda trees in the world.
Onto truck hire! The industry of truck hire and logistics is a critical arm in the growth of any expanding economy and South Africa is certainly no different. In order to explain the role of a truck rental industry in an expanding economy, a hypothetical example is in need.
Company X mass produces toys for large retailers. Having a fleet of 10 full time vehicles means that they can meet demand for much of the year, but what happens when demand spikes? What happens when Christmas time and double-pay checks arrive?
All of a sudden the demand for toys doubles, the toy factory is working in overdrive but the 10 strong fleet cannot deliver the goods on time, this is where the need for truck hire comes in.
Truck rental provides businesses such as company X with the flexible, financial, risk and focus benefits. The option to make use of a truck hire company enables company X to run at maximum capacity without dragging down service delivery.
In terms of flexibility, company X has the option to rent trucks on a short-to-medium term basis, therefore allowing them to make use of vehicles as-and-when required without having to fork out massive capital outlays. This brings us onto the financial aspect in term of what the truck rental industry has to offer. Without the option for company X to hire trucks in from an external source, the business would have to purchase and maintain their own fleet of vehicles that can cope with demand all-year round, both peak and non-peak periods.
The risk benefit comes into play as to when company X does not have to implement procedures and systems in order to minimize risk for their fleet. Tracking devices, break-downs and other such risks are taken care of the truck rental supplier. The focus benefit means that instead of the CEO of company X having to focus on maintaining and financing his vast fleet of vehicles, he can rather focus his time and money on generating productivity in the toy factory, something he knows best.
So there you have it, truck hire plays a key role in the South African economy, merely because it allows businesses to manage their peak and off periods without compromising on service or product quality.
At Power Truck Hire, we love truck rental, we love to watch our trucks make your life easier.
Power Truck Hire is a quality truck rental supplier focused on the individual consumer market as well as SME’s and corporate companies in South Africa.