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Petrol Will Keep Going Up in Cost

You don’t need to be a rocket scientist to understand that petrol and diesel could well hit the highest prices ever this year. This is likely to have a significant impact in New Zealand and Australia where we rely on other countries to provide our fuel. Irrespective of the state of our economies, we are relatively low in the rungs of priority if supplies become short worldwide. Obviously oil demand is increasing globally, irrespective of international politics and our exchange rates. The following graph shows the trend just over the last 3 months.

The implications are obvious. If you have a fleet of vehicles on the road, your running costs are going to increase and you have very little control over what you are going to pay for fuel.

Using technologies such as Fleet Management from our partners, you will have the ability to manage some costs. This includes:

  • Monitoring driver behaviour such as harsh acceleration, speeding and other activities such as engine idling time where reports can identify drivers who may benefit from education on the impact of these activities to your costs.
  • Monitoring the use of the vehicles, eg personal use or order of use.

You might look at operational improvements such as whether it is more economical for the driver to start from home, closer to their first jobs in the morning as opposed to leaving the vehicle at the depot. You might want to focus more on load management, are you sending trucks out with a load but bringing them back empty? You might want to look at whether there are other jobs in the vicinity of the vehicle that could be completed without the vehicle coming back to base and going out again.

GeoSmart has a number of tools that can help you with these considerations. For example Route Optimisation with Route2GO can help you eliminate the guesswork of what order jobs should be done in. If someone is going out and doing one or 2 stops and going back, that’s one thing, but if a vehicle is making several stops on a trip, it is unlikely that many people have the ability to work out the best order to do the jobs in.

Route optimisation takes into consideration every possible sequence of all the stops on your trip, with an underlying knowledge of turn restrictions (one way streets, no left turns), road class (speed zones, a shortest route might include many compulsory stops trying to cross busy main roads and driving slightly farther might not only speed up the trip but by not stopping and starting through the gears, will consume less fuel) and other considerations. The computer has no emotions, it just solves a technical problem and provides you with a result that will tell you the best order in which to do the work, complete with expected driving distance and time. This can produce a run or job sheet that can also give you an idea, based of your knowledge of expected time on site, as to how many jobs may be completed in one day.

Business Intelligence is a whole new story. Imagine being able to see all your clients on a map, run queries and reports based on any information you have in your database or work management application. How would you like to be able to manage run territories, understand profitable clients, see where upcoming jobs and priorities are, without having to install any software? All you need is a web browser and an internet connection. A picture speaks a thousand words and being able to visualise your business on a map can shed a light on what is going on in your business in a way that is often very difficult to get from spreadsheets and tables. GeoSmart’s new BIonaMAP Business Intelligence on a Map can help you put the pieces together and show you what your business looks like.

We can help you keep your fuel costs under control with practical web based tools that will provide you with the information you need by visualising and viewing your business operations on a map. Information is power.

These solutions support all of Australia and New Zealand so if that is where you are, why not contact us to find out how we can help?

January 19, 2012 Posted by | Australia, Business Analytics, Business Intelligence, Delivery, Distribution, Fleet Management, Freight, geosmart, new zealand, Oil Price, petrol, route optimisation, territory management, Uncategorized | , , , , , , , , , , , , , | Leave a comment

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.

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

The Travelling Salesman Problem

GeoSmart now has a solution available for people wanting to know which order to visit their clients in, so that they can keep time and travel costs to a minimum. This is a form of Route Optimisation known as the Travelling Salesman Problem. GeoSmart also offers complex Route Optimisation under the banner of Route2GO, but that is another story.

With the price of petrol now permanently above NZ$2 a litre and time at a premium, this tool can easily assist people in making the most of their travel.  It could be a delivery truck working out the order of their deliveries and in reverse order how to load the truck. It could be a sales person working out the best way to make their sales calls.

In the illustration you can see that we set the first and last addresses as fixed. In other words we are defining where we start and finish for the day, they don’t have to be the same, the last one could be a motel yo are staying at for the night and the first one might be your home or office. You could just fix the start point and be flexible on the end point and then go to the AA Maps website to decide where to stay for the night and even make the booking before you leave.

In the illustration, the sales person guessed an order in which to do the calls, but the optimised route cut 34km from the route and at the (adjustable) per km rate resulted in savings of $10 on the trip.

This tool doesn’t just have to be used for a set of destinations. It could also be used as a trip/price calculator. For example one of our new clients is putting this tool (slightly modified so that you can’t edit the price per km which only he can do on his site) so that people can get their own quote on a delivery job without having to ring the company.

Many companies pay staff or contractors on the basis of an agreed distance, it could be for commuting, or for visiting clients, patients etc. This tool can calculate the ‘fastest’ route between clients and will deliver a consistent result that can reduce arguments and deliver an equitable result.

There are other standard features to this tool, for example click on any of the letters denoting locations and the map will instantly zoom to that location so you can see it better. The maps are dynamic and do of course have full pan and zoom functionality.

This optimisation is possible because GeoSmart has a full turn restriction database for New Zealand so when it calculates these directions it knows all about one-way streets, dual carriageways, no right turn, no left turn etc. This is in fact the same database used by te leading car navigation brands including TomTom, Navman, Siemens VDO, BMW, Ford, Honda,Horizon and Nav N Go.

If you have a route optimisation problem, please send us an email to info@geosmart .co.nz or follow the directions on our Contact Page.

June 16, 2008 Posted by | car navigation, cartography, Delivery, driving, Freight, gps, maps, new zealand, petrol, Sales | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment