Ineffective decision making, lack of planning and poor visibility in the cold chain can cause companies to overpay, miss delivery targets, incur damaged goods, and lose valuable business. Yet this needn't be the case. There are simple and economical ways for businesses to reduce risk, enhance efficiency, and achieve significant cost reductions.
When businesses of all sizes manage transportation and shipping costs effectively, they improve financial performance. Ensure your business is taking advantage of these 3 great ways to reduce operation costs and improve delivery rates.
Cut Miles Travelled
Fewer miles travelled equals less fuel use, cutting operating costs and carbon emissions. By using advanced routing and scheduling software solutions you can ensure you make the best use of your fleet.
Most of these solutions use advanced algorithms designed to plan the most efficient multi route drops and delay order cut off with shorter route planning times. They can calculate the most effective delivery schedules for you in seconds. Optimised routes improve equipment utilisation and minimise mileage to lower fuel costs.
Smart Telematics can also help boost profits by focussing on improving driver performance by analysing everything from idle time to speed and harsh breaking.
Increase First Time Delivery
Failing to deliver is a significant cost for businesses. Statistics show that failed delivery costs are expected to be around £771 million this year alone, and this includes marketplace deliveries.
Giving your customers visibility and the opportunity to fully engage in the delivery process allows them to make more informed decisions about the service they want and to help manage the ‘final mile’. Keep them informed about when they can expect to receive their consignment and give them the chance to inform you in advance if they wont be available so that you can re-schedule their delivery.
Specific delivery windows, email and text notifications will all help you increase first time deliveries and result in a happy customer.
Reduce Costs of an Aging Fleet
Over time vehicles decrease in fuel economy and operational efficiency is reduced. Retaining and operating vehicles far past their optimum economic life can result in excessive maintenance expenses and increased fuel costs. This practice of utilising an aging fleet stems from previous practices, a lack of capital funding, or failure to communicate the costs and benefits of timely fleet replacement.
Consider all relevant factors such as the initial vehicle cost, reasonable projected resale value, fuel mpg, planned maintenance and projected repair to help you put in place short and long-term replacement plans.
Best-in-class fleet organisations utilise economic-based replacement planning tools to determine the proper lifecycles for vehicle replacement.