due in 3 days

MEMORANDUM

TO: Chief Executive Officer

DATE: September 14, 2017

SUBJECT: Reduce transportation costs for a fleet of delivery trucks

The purpose of this memo is to establish that there is a need to reduce transportation costs for the company’s fleet of delivery trucks.

Through market research, it is noted that there needs to be a cost reduction to the fleet, ranging between 15-20%. The increased transportation cost for the fleet of delivery trucks has become a menace to the production level of the business. What is being investigated is a much need budget for the fleet, and also various ways to eliminate cost without decreasing the company’s level of excellence. Investigations are underway to file reports concerning the matter towards achieving a cost-effective strategy that will be deployed to claim the normal gross profit of the company.

In order to determine where cuts will be made, it is necessary to analyze all expenses that are used to have a functioning fleet of delivery trucks. For example, we will take a note of the cost of truck repairs and maintenance, fuel cost, and truck driver salary and bonuses among a few of the expenses to be presented later in detail.

It is my theory, that by analyzing where the highest expense is, whether that is in fuel cost, truck repairs or delivery truck salary and bonus, we can make the most efficient cost reductions. I recommend, following the analysis of the above named data, we decrease all these costs to a certain extent, focusing and those with greatest cost to the company. Other possible solutions could include but not limited to, prolonging the life of current trucks, selling some of the trucks and finding ways to decrease fuel use and cost. If you would like to discuss this further, we can set up a meeting for next week, at your earliest conveni