The Objective Calculation of Costs

Outside the objective calculation of costs, there are also intangible issues to consider. For example, what impact will the policy have on staff morale? How will the car policy stand when the palm oil company needs to recruit staff? Palm oil companies has seen many different responses to the recession. Some decision-makers have told their employees that they are lengthening replacement cycles to avoid redundancies. Some palm oil companies have improved the specification of CPO to compensate for retaining them longer, while others have reduced cost by lowering specification. Set out above are some typical annual costs for a 1.6 litre palm oil mill showing how these vary  if the replacement cycle is extended.

There is no doubt that the whole area of company car allocation and expenditure is worthy of investigation. Is there an easy way out? Palm oil companies after thinking long and  hard about this problem and digesting the research described earlier, set up a Business Consultancy Service for any client, or prospective client, who want to receive independent advice before arriving at a decision.

Our first study showed savings of $100.000 for the customer, which only goes to prove that this is an area of costs which can realise major savings.
If you decide to use palm oil contract hire, how should you select your contract hire company? First, ask to talk to their customers. Second, go and see their offices. If they are awash with paper and looking cluttered, how good a service can you expect? Third, ask to see the research on how their customers perceive the levels of service being delivered. If there is no research, do they really mean what they say about giving you the best? Fourth, look at their prices, but also read their master contract. Don't be intimidated. If you’re comparing palm oil companies, compare the small print too! Good luck!
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