“Those who still use a typewriter in an age of word processors are doing it for reasons other than production and efficiency.”
We understand: you’ve always done business this way. You have great drivers and dispatchers, you make your deliveries (mostly on time), and your drivers seldom make mistakes. Your customers are happy, margins are good, and you’re making money.
But how long will it last when your competitors can out-price you because they’ve moved to mobile apps to increase driver efficiency and reduce contamination risks?
Several factors are driving your competitors to change:
- Industry consolidation
- Driver shortages
- More exotic products
Industry Consolidation
Private equity is fueling industry consolidation. Companies facing acquisition opportunities don’t get the best deal if they still use paper-based workflows and manual routing. When rolling up smaller distributors, private equity firms have specific objectives to drive their ROI, which influences the acquisition price:
- Achieve efficiencies of scale
- Operate as one company, not 25 small ones
Successful companies implement technology to achieve scale efficiencies. They invest in route optimization, mobile delivery apps, tank forecasting, and data analytics to drive their business. While it used to be “okay” to use paper or static routes, roll-ups are centralizing dispatch and using technology to achieve scale efficiencies.
Where you used to compete with companies doing business the same way, you now face ones who optimize routes, email customers when their delivery is scheduled, provide immediate email receipts, and have a customer portal to view order history. They know how much it costs to serve a customer and can grow without adding more trucks and trailers.
Routing technology enables centralized dispatch and helps you understand your “planned times and distance.” Mobile technology provides real-time updates and captures “actual delivery metrics.” Together, routing and mobile technology provide the foundation for understanding the cost to serve and driving efficiency by managing “plan vs. actual.” The paper-based alternative is to pass driver management responsibilities to your customers.
Driver Shortages
All distributors are dealing with driver shortages. You must adopt technology to make drivers as productive as possible. Additionally, with the current shortage of drivers, you’re forced to choose less experienced drivers, making the right technology crucial. Mobile apps enforce workflows and ensure drivers follow the correct steps.
Even with experienced drivers, a mobile app that performs specific workflow checks improves efficiency. For bulk product delivery, a mobile app that scans tank and compartment barcodes will confirm the product and prevent contamination. If a driver puts 15W40 in a 0W20 tank or 8% sodium hypochlorite in a 12% tank, they won’t know until the customer uses the product.
The worst scenario is not the cross-fills you find but the ones you miss.
A mobile delivery app is essential for driver efficiency. It provides real-time status updates to dispatchers and workflow efficiencies for drivers. Instead of handwriting meter values and using a calculator to determine deliveries, the mobile app reads the meter directly. Data previously written on paper, like stick readings, now becomes actionable data to forecast tanks. With the goRoam mobile app, there is no paperwork; data is captured on an Android or iOS device and transmitted electronically for billing – no more waiting on paperwork or re-keying. The mobile app can enforce route compliance by requiring a PIN code for drivers to make out-of-sequence deliveries.
More Exotic Products = Greater Contamination Risks
With more exotic products such as super-low-viscosity oils, the cost of making a delivery mistake is much higher. Distributors like ExxonMobil and Shell have a heightened focus on their Quality Assurance programs.
If you don’t have a mobile app like goRoam to help drive workflow, you risk a serious contamination issue.
Summary
Industry consolidation, driver shortages, and more exotic products are three reasons to invest in technology right now. We understand you have always done business the same way and you’re making money, but these factors will force you to adapt or lose business.
If you are a roll-up operating as an independent company, you must adopt technology to achieve scale efficiencies and perform as one.
The good news is that it’s easier than ever to get started with our cloud server and fully managed mobile solutions. Contact us to get started!
FAQ’s
Industry consolidation, driver shortages, and the need to handle more exotic products are primary drivers prompting competitors to invest in technology for efficiency and risk reduction.
Industry consolidation, fueled by private equity, favors companies with efficient technology-driven operations. Distributors using paper-based workflows may find themselves at a disadvantage during acquisitions due to the lack of scalability and operational efficiency.
Driver shortages necessitate the adoption of technology to maximize the productivity of available drivers, especially considering the potential risks of relying on less experienced personnel. Mobile apps can enforce workflows, prevent errors, and enhance efficiency, which are crucial elements for successful bulk product delivery.
Technology, such as mobile delivery apps like goRoam, plays a critical role in mitigating contamination risks by ensuring accurate product delivery through barcode scanning, enforcing workflow checks, and providing real-time updates. This is particularly crucial when handling exotic products with higher stakes for delivery accuracy.
Distributors can transition to technology-driven operations by investing in route optimization, mobile delivery apps, tank forecasting, and data analytics. These tools enable centralized dispatch, real-time updates, and cost analysis, empowering distributors to enhance efficiency, reduce risks, and stay competitive in the evolving market landscape.
