There are a “Vital Few” key metrics that can determine the health of a project or operation, and this applies fuels, lubes and bulk chemical delivery.
Just three vital KPI’s can tell you how efficiently your business is running and trending.
- Plan vs. Actual route time
Plan vs. Actual time is an indicator of excess hours by drivers
There are always exceptions for traffic, weather, and mechanical issues, but without this measurement, you cannot manage your labor costs and overtime.
Anecdotally, one of our customers had a long-time fuel driver who always ran an 8-hr shift with occasional overtime, so nothing looked out of the ordinary. He was highly resistant to our mobile solution and kept making excuses and claiming there were technical issues. Our customer continued to restrict his trips but still had issues with him. They gave his route to another driver who consistently did the route in less than 4 hours – with the same stops. If you don’t know how long a trip is supposed to take, you don’t know if drivers are working the system.
Gal/Trip is an indicator of whether you are fully utilizing your equipment
If you are not using a route optimization solution, you are not building trips with the most efficient order combinations. Aggregated unused capacity on your trucks is a running loss of opportunity that can never be recovered– though you never see the bill for it, it comes at a cost. We’ve seen customers do the same number of trips with 8.5 trucks vs. 10 saving more than 15% of their total transportation costs with route optimization. This saving s alone can cover the cost of deploying a dispatch and delivery system!
A more advanced method of increasing gal/trip is to route all current, open orders, and then use our virtual tank forecasting and trigger tanks to determine which keep full accounts you can top off with products also on those routes. We’ve seen customers increase truck utilization by more than 20% using this approach. Even if a customer’s tank has not reached its safety stock, it can still be topped off to avoid a separate trip just to hit that tank a couple of days in the future. That’s a win for your customer and improved operational efficiency! The important message here is that technology is not just an expense; it’s a tool that can drive out unnecessary costs and improve customer satisfaction while paying for itself.
A word about tank monitors: Installing tank monitors on every tank at every customer is expensive and labor intensive. At the same time, knowing the level of every tank is invaluable from a customer service standpoint. When you use BizSpeed’s bulk delivery solution, you don’t have to put a monitor on every tank to track utilization. You can still accurately forecast some tanks without monitors with statistical modeling and Machine Learning(ML)/Artificial Intelligence (AI). While the intelligence is artificial, the results are real.
BizSpeed’s goRoam can use historical delivery data and put unmonitored tanks into groups along with similar traditional monitored tanks to calculate utilization trends. These calculations can be tailored to account for different usage patterns to predict when a safety stock level will be reached.
Gal/Hr is a measure of how efficiently you route
It is correlated to gal/mile but provides a better indicator because it captures any slack time a driver takes or “meandering factor.” When drivers linger at the yard before/after a trip starts, or where they take an unplanned break during a trip. Their gal/mile may look good, but it took an extra 30 minutes of delivery time while the mileage did not change.
There are some other KPI’s that help manage your business, such as:
- On-time %
- % of the fleet used
- Ordered vs. delivered variance
- Total mileage
These should be tracked as well, but the vital few KPI’s will give you an accurate snapshot of your logistics efficiency that shows you the biggest places to save money. BizSpeed’s goRoam software combines these with our Driver Scorecard to keep improving your operational efficiency and customer service. You can start to develop a comprehensive picture and plan for the health of your operation today. Reply to this email to start the conversation.