When Tapping into Technology Leads to Growing Profits
As resistance to trucking technology steadily fades away, more fleets are discovering the profit-making benefits it can deliver. Route analysis and optimization is one example.
by David Beaudry of AmeriQuest
January 7, 2015
Photo courtesy of AmeriQuestcorp.com
3 min to read
Photo courtesy of AmeriQuestcorp.com
While there will always be those who are stubbornly resistant to change, I think the trucking industry as a whole has come a long way in a relatively short time in its willingness to recognize the value that trucking technology brings to private fleets and carriers.
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Some view technology as a way to increase profits while others see it as a way to lower operating costs. Whatever the motivation, there’s an undeniable, gradual shift in the attitudes towards it. As a logistics consulting professional who works daily with cutting-edge technology, I’m convinced this new openness will eventually lead our industry to sustainable, long-term growth.
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Let’s take the example of route analysis and optimization as a beneficial technology currently available to trucking fleets. Today’s robust modeling technology that is integral to the process can simulate fleet activities and identify opportunities for savings. The technology can be a game-changer for fleets and deliver any number of services, including:
Routing and scheduling analysis and optimization
Asset utilization recommendations
Productivity and customer service analysis
Driver compensation analysis
Productivity and customer service analysis
The first step in the logistics consulting process is to collect data from any number of sources including driver manifests, customer route listings, equipment lists, driver lists, etc. Data is also generated by newer trucking technology such as telematics, electronic logging devices, even smartphones. These statistics should show variations daily, weekly and monthly.
Next, the data is mined and analyzed from different perspectives and summarized into useful information. For fleets, this information can be used to increase revenue, cut costs, and improve customer service. The software helps us find correlations or patterns among the different databases.
The analysis enables us to take a closer look at how a company assigns work to drivers and which specific tractors, trailers, and straight trucks are employed each day. This study is necessary to identify minimum requirements based on current routes to make the best use of assets.
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The process allows us to analyze the weekly average of loads, stops, loading and unloading time and miles driven for each truck and drivers. Using the technology available to us, we study the flow of assets and activity. We can determine the effectiveness of current route configurations and identify preferable route plans and asset allocation, with the ultimate goal of lowering the cost per miles and having a positive effect on the company’s bottom line.
This service alone is a good example of the enormous benefits technology brings to fleets. Technology is giving fleet owners the tools they need to generate and mine data to uncover hidden opportunities for savings and enhanced performance. Controlling assets effectively, minimizing operating costs, reducing out-of-route miles, recovering productive driving time… what’s not to like?
Originally published on the AmeriQuestcorp.com blog.This article was authored under the guidance and editorial standards of HDT's editors to provide useful information to our readers.
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