Delivery company saves thousands in minutes
Efficient mobile workforce management can make a huge difference to the bottom line for a mobile business, including field service or delivery companies. Just how much it can save, and what areas of the business it can improve, may surprise you.
In fact, a recent study conducted on one food & beverage business highlights just how much a mobile business could save using Telogis to optimize their current route plan.
To summarize briefly how Telogis Route optimizes a mobile workforce, it starts with the current routes and builds in all the current vehicle, driver, customer and depot information. It also takes into account whatever constraints may apply, including customer delivery criteria, necessary vehicle and driver attributes, and any applicable restrictions on working hours or product handling requirements. This is known as the “problem”, and when set up, Telogis Route is ready to create the “solution”.
How one fleet saved thousands — in minutes
A recent analysis undertaken on one particular Californian food & beverage company uncovered significant potential savings within minutes of running the route optimization tool.
Food & beverage fleets, like a lot of delivery and field service companies, run up a lot of miles and driver hours every day. It’s an extremely mobile business and very customer-service oriented. It’s also competitive. This means a lot of decisions need to be made on what customers to service, when and by whom. And in a short space of time. It’s very nearly impossible for a fleet manager to make those calculations manually and reach the best decision. But often they try, based on gut feeling and experience. While the business might be getting by, this leaves a lot of room for wastage and inefficiencies.
The business we tested was amazed at just how much room there was for improvement.
Optimizing their current routes, we discovered the following opportunities for them:
- Reduce the number of individual routes by 36%
- Reduce the total number of miles driven by 60%
- Reduce the number of driver hours by 47%
By implementing the suggested changes to their current routes, this fleet would save a massive 58% on their current operating expenditure, saving them thousands. Yet the process involved in optimizing their current routes took just minutes.
But it’s not just benefiting a fleet’s profitability; it also reduces their carbon footprint. In the tests we ran on this fleet, the savings in GHG emissions would have amounted to 25,027 lbs (or 11.38 tons) less CO2 into the atmosphere (based on a truck average 12MPG and the EPA’s carbon calculation).
Savings will vary for different fleets, based on factors such as size and delivery constraints, but when profitability and excellent customer service are key to staying ahead of the competition, it’s worth investigating any saving opportunities.
Use the online ROI calculator to measure some estimated savings for your own fleet.
Route planning that lives in the real world
For a route planner to be usable it needs to keep its feet on the ground. It needs to understand that some constraints can’t be moved or changed; that some customer or worker preferences are non-negotiable, no matter how much more efficient a different way might be.
Telogis Route understands this and optimizes routes based on these restrictions. Obviously the less restrictions there are the more routes can be optimized, but Telogis Route will always stay within the constraints you provide. Thus it’s always a good idea to make sure you review the routes entered for unnecessary restrictions before optimizing.
There are also times when route planning hits a brick wall. The constraints entered make a work order impossible, such as when the only vehicle available on that day lacks the necessary attributes or there are no qualified drivers working. Telogis Route alerts you to these violations, allowing you to make changes to the customer job, or ignore them and continue creating the routes.
Route planning isn’t simple and only gets more complicated as your mobile workforce grows and your business expands. But it doesn’t need to be hard. With Telogis Route you can not only simplify mobile workforce management and workload balancing, but also make significant savings to improve your bottom line.