Despite being a fully paid up member of the Green Generation, I am just as easily frustrated by the “tree huggers” as everyone else.  However there is a real link between environmental goals and business goals: poor fuel economy is bad in so many ways; higher running costs, more emissions (think Carbon tax and asthmatic children), less ‘feel good’ factor for your customers, and a higher price for them to pay too.

So what role do your systems play in getting you ahead of the competition?  Your systems are collecting a wealth of information about your business.  Their reports are objective and based on real data.  These reports don’t tell you what you want to hear – they tell you what you need to know:

  • What is your average fuel consumption, by vehicle?
  • How much time does your fleet spend idling?
  • What is your average turnaround on a customer’s site, or in your own depot?
  • What is your average loading (by number of pallets, tonnes, litres, etc) on your local trucks then each of your distance routes?

In the face of rising prices, managing these items could keep your outgoings at least stable, with a side benefit for the environment too.

Targets: lift your eyes to the horizon

Consider what measurements, such as those above, are most appropriate for your fleet.  Review your current figures to determine your actual performance in each area and set some realistic improvement targets.  Your role is to provide leadership to ensure the business is consistently successful, your staff are the ones who will deliver the targets which you identify. Tackle fatigue – long distance drivers know their routes, their customers and their truck’s performance, sometimes to the point of complacency. Give your drivers a challenge to meet fuel consumption targets which can also address excessive idling and speeding.

Task your managers and sales team to learn what is delaying turnaround at customer sites; poor planning by you or them?  Delivery time clash with another company? What can be done to reduce the time your vehicles spend in your depot? Your staff are in charge of every element here. You don’t earn money by having vehicles stationary in the depot, so minimise the time that they are spending there.

Innovative alternatives

Evaluate external options to address poor load utilisation.  Firstly, if you are spreading your costs between too few units loaded on the vehicle, your price per unit needs to be higher to the customer.  How long will they accept that?  Secondly, there may be another operator who has a similar problem.  Is a complementary load sharing agreement possible instead of competing?

Just because your company has always been self reliant for finding customers and delivering your own promises, it doesn’t make it the right answer for the future.  The availability and mobility of business data now means that you can monitor the progress of any freight which you have asked a partner operator to deliver so you no longer have to worry that your promised service levels are being compromised, you can see for yourself.

Now is the time to innovate in your business; scan your reports and look for trends which indicate any hazards or opportunities on the road ahead.

At university I wrote my thesis on the role of metro freight hubs to reduce the total number of vehicles in a city centre. Separating the long distance feeder vehicles from the nimble delivery vehicles. Locating these operations at a mutually convenient location to ensure that the minimum number of trucks could be sent into the city carrying maximum loads. The UK environment, which I was considering at the time, has a bigger congestion problem than NZ. Do not follow in their footsteps – learn from their lessons and avoid creating the same issues which they are facing.

Greenwash or Business Intuition?

Higher load factors mean lower cost per unit and in turn a more competitive price for your customer.

Higher load factors mean fewer trucks causing congestion in loading and unloading areas.

Fewer trucks mean lower total overhead. Fewer trucks mean lower emissions. Fewer trucks to carry today’s freight means there is spare capacity to manage the projected growth over the coming years. Continuing at the current levels of utilisation is not a sensible way to protect your profit or your future generations.

Stay alert, think ahead and plan your trip.