Saving half a million dollars – The Namasco story
In times of unreasonably tight budgets and ongoing pressure to cut costs, businesses struggle. Fleets often feel it more than most because they’ve been hit with rising fuel prices, which adds a significant cost and puts extra pressure on fleet managers and VPs to come up with radical solutions.
Namasco is a typical large-scale fleet in America that faces the same challenges as other fleets around the world — maintaining a competitive edge while coping with rising costs. The company was experiencing spiraling costs and managers knew they had to do something to stay profitable, but exactly what was unclear.
What they were experiencing was common for many commercial fleets that feel the rise in fuel prices worse than other firms because of the scale of their operations. A small increase, even just a few cents per gallon, can result in a significant increase in costs for a large fleet. Namasco operates a fleet of over 200 diesel flatbed tractor-trailers with around 240 drivers, which means managing the cost of gas is one of their biggest concerns.
The good news is that Namasco found a solution to the problem. Rather than letting the problem beat them, and costing hundreds of hard-working drivers their jobs, Namasco turned to Telogis telematics. But exactly how were they able to save over half a million dollars in the first year?
3 easy steps to saving $500,000
Essentially there were three main areas where Telogis telematics allowed Namasco to reap some serious cost savings.
1 — Out-of-route driving
In 2009 when Namasco implemented the Telogis solution, operating costs for the fleet were at $2 per mile. It’s likely a lot higher now, but even then it meant that every unnecessary mile was hurting the bottom line. Drivers were taking liberties with their routes, sometimes tandem driving with workmates, stopping off at home for personal reasons or just taking the scenic route. When that was multiplied across more than 200 trucks it added up to a huge expense. Telogis Fleet helped Namasco curtail off-route miles because they could now see exactly when and where the problem was occurring.
2 — Excessive idling
“With fuel prices at record highs, each hour drivers spend idling costs Namasco a substantial sum of money,” reports Len Stark, Namasco Corporation’s Director of Technical Services. It wasn’t always the driver’s fault, either; sometimes customers would require trucks to wait for extended periods of time before unloading. Being able to track idling meant that Namasco could follow up directly with customers that were pushing up their fuel bills and work out a suitable alternative.
3 — Costly routing
Knowing where you’re going and thinking you know where you’re going can be two completely different things. Telogis calculated the optimum route for every delivery, and drivers were provided with detailed, turn-by-turn directions to their destination. Routes were based on working out the lowest cost per trip, thus saving Namasco even more.
Fleet management software goes the extra mile
But while Namasco was using Telogis to reduce fuel costs, they got more than they bargained for. Aside from a leaner, cheaper-to-run fleet, Namasco has also improved driver compliance (automating DOT HOS compliance), safer driving (important when you’re hauling 45,000 lbs of steel!) internal processes (automated delivery confirmation), and improved customer service levels (real-time tracking of deliveries to pre-empt potential delays and keep customers informed).
The Namasco story had a happy ending — half a million dollars worth of happy, to be precise. But how they achieved that outcome is of even greater interest to fleet owners. If you’d like to know how a Telogis solution can save your fleet a lot of money, get in touch with us today.