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Petrol Price Hikes and Route Optimisation

If you are in business and have a fleet of vehicles on the road, you will be very aware of the increase in the price of petrol. This morning’s story in the NZ Herald Business Section suggests that fuel prices won’t be going down soon. There is of course the tension in the Middle East which has driven oil prices as high as US$103 a barrel and the NZ exchange rate has suffered not only with the Christchurch Earthquake, but also the expectation that the Reserve Bank will cut the cash rate on March 10. This makes our currency less attractive and we have dropped 2 cents against the US dollar in the last month.

One option is to shop around. Cardlink has a website called Pricewatch, which shows what people who have their fuel cards are paying, but of course these are discounted prices. Prices vary around the country, but even then you will struggle to find anything below $2 if you consider $1.999 as being below $2.

The AA Petrol Watch web page suggests that the oil companies have only passed on half their increase in costs, so far. There has also been talk of shielding Christchurch of increases which is great, but of course the rest of us will have to subsidise that.

The problem from a business perspective is that whilst our running costs increase, our clients expect to pay the same or less for our products and services. If your products and services involve distribution, delivery or field work, this becomes a serious problem. This is a problem that GeoSmart may be able to assist with.

Our solution is Route Optimisation. We have a solution called Route2Go, which you may have read about in previous blogs. In simple terms, give us a list of the jobs that a vehicle has to do in a day and our solution will advise you which order to do them in, to drive the least distance and in the shortest time by calculating the fastest route. Even without the price rises in petrol, this is saving clients a lot of cost, but now it is even more attractive.

The best thing is that we offer you the chance to evaluate this product in relation to your unique business for free. As per the PDF which you can download below, if you would like to send us the addresses of 5 existing daily runs (we don’t need to know the names of the companies, or will provide a confidentiality agreement) in the order that they have been done, we will optimise them for free and send you the results.

Route2GO is a Software a a Service (SaaS) application which means there is nothing to install and no set up fee. You simply pay for the number of locations you optimise to. With the results of the free trial, you will be able to see exactly what your savings can be as a result of using the service.

What have you got to lose? Try us now. Please note this service is currently only available in New Zealand.

Route2GO Flyer

P.S. Did I mention green? If you are reducing the distance you drive you are of course also reducing your carbon footprint.

P.P.S. Optimisation can also mean that you can fit more jobs into a day without increasing your fixed overheads.

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March 3, 2011 - Posted by | Auckland, Business Tools, carbon footprint, Delivery, Distribution, driving, Freight, Furniture Delivery, geosmart, location based services, map tools, new zealand, petrol, Return On Delivery, ROI, route optimisation, Route2GO, SaaS, Sales, software, territory management, Uncategorized | , , , , , , , , , , , , , , , , , , , , , , , , ,

1 Comment »

  1. [...] have automated into an application that can be run from a web browser on a pay as you go basis. We blogged about this last week when we first heard of the $2 [...]

    Pingback by Dealing with Increasing Oil Prices for your Company Vehicles « GeoSmart Weblog | March 6, 2011 | Reply


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