ROI for Transportation & Logistics

allGeo for Transportation & Logistics

The Untapped Profit Center – Your Supply Chain Operations

You can save hundreds of thousands of dollars, and earn thousands more, by using the allGeo Mobile & Cloud-based solution to help you better manage your Transportation & Logistics Operations.

What to Look For

In the modern-day of smartphones and SaaS solutions, you don’t have to adopt a complex supply chain management system to reap the cost savings and productivity gains that come from automating your logistics operations. Just knowing when your drivers actually started and stopped a load run can save you thousands of dollars in billable hours and payroll expenses. In addition, if you can tell that the driver started from the origin site when they’re supposed to, and trigger exception alerts when they are late en route due to traffic, you can earn thousands more for your business through better resource planning and improved dispatch response.

How the Numbers Add Up

Here’s a pretty common savings scenario that allGeo frequently sees with our customers (we often see a 5-10% payroll savings and a 10-15% productivity gain). These numbers may not be yours but should give you a good idea of how they can rapidly add up for you.

1. Cost Savings related to the back-office team & Drivers

(Avoid check-calls, save on processing proof-of-delivery, dispatch calls, etc.)
Let’s say that SCM Co. employs ten office admin staff, and they get paid an average of $23/hour (which is the median hourly wage according to the Bureau of Labor & Statistics). They do an average of 3-4 check-calls per haul / load run per day and work ~40 hour / week, across 48 weeks during the year.
In this scenario, SCM Co can save over $22,000 per year if they can just shave 5% off their payroll costs — or a half-hour of increase in productive paid time a day! Same savings can also be applied to Drivers hours-of-service logging.

2. Fuel Savings

By reducing wait time at origin / destination warehouses and check-points, there are tremendous fuel savings as the trucks are not idling while waiting to be off-loaded. Similar efficiencies can be gained by creating better route planning. A solution like allGeo can show savings of above 20% in fuel.

3. Improve Customer Satisfaction and compliance with Client SLA

With real-time alerts and notifications, you are able to stay at the top of any exception. Furthermore, with rules based messaging, you can keep your customers’ teams informed of realtime status on any truck at any time.   The data can be sent in the form of emails/text OR live fed into the customer’s back-office using a rich set of Web APIs.

4. Productivity Gains 

Real-time alerts based on scans, arrivals, departure with ETAs can be used to adjust resource allocation just-in-time at origin & destination points.  The system can help with operations improvement by reducing wait times at origin/destination for drivers and warehouse staff.  Reports on data such as miles driven, the number of trips, days in service, etc. can be used to better utilize existing fleet & drivers.

Average allGeo customer sees a big revenue boost from productivity gains – more accurate time management and exception awareness means your drivers & staff can complete a few more jobs a week than before. How does this benefit you? Let’s run the numbers. Let’s say that SCP Co charges $117/billable hour (another BLS average) for warehouse staff and each worker racks up six billable hours of work a day.

In this scenario, SCP Co. can take in an additional $168,000 in billable hours per year if they can score a modest 10% increase in productivity – just 1 or 2 extra jobs a week can add up fast for your bottom line.

The ROI for SCP Corp is close to $200,000 a year with a team of 10 operations staff!  All this without investing in any new equipment including smartphones or telematics devices.

If you haven’t used a Logistics management solution before, give us a call to setup a Demo.  If you are using one, take a look at the benefits vs the costs of your current service.
Check your own ROI here using this simple tool (Calculator).

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