GeoSmart Weblog

Just another WordPress.com weblog

How Furniture Shops can Save Time and Money on Deliveries with Route2GO Lite

Do you have delivery vehicles? How would you like to be able to do more deliveries in a day just by being a bit smarter? It’s expensive running a truck, especially in the city where traffic congestion is a given most days of the week. In the furniture business you may have a plan of which areas you will deliver to on certain days of the week. That’s a plan, but if a customer says he will only buy that expensive lounge suite if you deliver it tomorrow, do you walk away from the business? Times are better than I thought if you can do that.

In this industry and today’s economy a furniture store or chain needs to be smart, deliver on its promises and be competitive.

So what does your vehicle truly cost you to operate. Your accountant should be able to give you information on the total cost of ownership for your trucks or vans per annum. This includes depreciation, maintenance, petrol and oil, road user charges if applicable, insurance, tyres and other consumables and of course petrol. You will know the distance the vehicle has driven over the 1 year period, so can come up with a per km cost for this vehicle. So now divide the total cost of the vehicle for one year by the kilometres driven and you have your per km rate. This is important because you can’t calculate your return on investment on a service without knowing what your initial costs are. This of course doesn’t include the costs of the driver and possibly second staff person required in the truck because much furniture is to bulky or heavy for one person to manage.

A key problem with furniture delivery is that no two days are the same. This means that you can’t just plan a route out and repeat it. Each day you need to prepare a new run sheet and rely on someone to put it into an appropriate order. Sounds easy and obviously this is what people are doing every day. The problem is that, even with a printed road map, you may not know about one way streets, no right turns, dual carriageways where you can’t do a U-Turn and so on. We are currently working through some recent daily run sheets for a medium sized furniture retailer. The very first run sheet we processed through Route2GO, the optimised route was half of the distance of the route they did. It cut down their driving time for the day’s work by about an hour, meaning they could have easily done two more deliveries in the same amount of time.

So what skills do you need to be able to use Route2GO Lite? The minimum is the ability to correctly spell the street names you are going to and to follow the instructions in our user manual. You enter the addresses you are going to and we tell you what order to do them in.It can be as simple as that. If you have someone on staff that has basic spreadsheet skills, you can do so much more.

You can load the truck in reverse order so you’re not wasting time re-handling the furniture on the truck each time you stop. You can do much more and we’re going to tell you more about it in this blog. You can also get some more information on our web site. Best thing you can do is talk to us about your business. you can contact Luigi Cappel on phone 09 9668 768, or email luigi.cappel@geosmart.co.nz. Send us a job sheet for a run you have already done and let us check it for you. We’ll tell you whether we think we could have suggested a better route. Want to try it for yourself, we can set you up with a free trial so you can see how it works for your business.

Subscribe to this blog if this is of interest because I am going to come back and provide more information about how this can help your business grow. You don’t have to be a rocket scientist, you just have to have the desire to increase productivity and profit and provide a competitive level of service that will have your customers coming back for more and recommending you to their friends. Now check out where the tangible ROI comes from.

Finally remember that the companies who are best prepared in tough times are going to profit the most when the economy picks up. We want to help you. You understand the furniture trade, we understand New Zealand roads and how best to get around them.

Advertisements

September 21, 2010 - Posted by | Route2GO, Uncategorized | , , , , , , , , , , , , , , , , , , ,

2 Comments »

  1. Follow The Money!
    Everyone knows the transactions as a result, less money from the perspective of those who are on-call clients, we concentrate on people who have the money. Let me look at this from a slightly different angle.
    Last week I had a conversation with a good seller. It is a very complex sale done. There were very high stakes for him and his company, follow it expects more than $ 10,000,000 in the first year, jobs and businesses. He has a good job so far, but the deal was blocked. He seemed to be in a position to win, but was struggling with moving the customer is. Had the right people, who had met all their needs better than anyone else and worked was a sound business justification. He works all the questions, but failed to resolve the agreement to break.
    He was making almost everything right (we can never say someone is doing advisers well, not only in our BSI).
    It was really a difficult situation, I asked all the standard questions about the competition, decision making, the value proposition, the business justification, the availability of funding, all I could think about. Had reasonable answers to everything, he had obviously done their homework and the work was really the business.

    Comment by Rudy Arifin | September 22, 2010 | Reply

    • I wasn’t sure what you were getting at until I read your blog. I take your point. ROI can be measured in lots of different ways and often the result is less easy to quantify/ I will be writing a number of blogs on the topic of route optimisation and will take into account in a future blog, the issue of the needs of customers and staff when they are doing a transaction. For example from a workload perspective, if the customer wants the furniture tomorrow, but the traditional job sheet says they can’t deliver any more, there is pain for the customer and for the sales person who may be letting a certain sale walk away. Lose lose, but not on the ROI calculation.

      Comment by Luigi Cappel | September 22, 2010 | Reply


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: