3 ways to increase businesses gross margins with Zendera
Tight margins have infamously become an industry-standard in the world of logistics. Optimising your deliveries are essential for businesses to maintain competitiveness in the market while keeping gross margins up, or even stable.
Each truck must be used as optimally as possible. As easy as it sounds, there are several routes to archive this. We've had clients that prefer to spread out their orders between their trucks, to have all of their trucks used equally. Others wanted to fully utilize each truck before moving on to the next one, having a buffer of trucks that can be used for other things or left idle. One particular client needed to optimize for decreased Co2 emissions, as part of a contract level agreement.
All of these options give you a decrease in the time spent per stop, a decrease in the distance driven, and reduced administration. How will each of these impact your margin?
Three ways Zendera can be used to increase margin.
· ? Decrease in the time spent per stop so you can do more stops per day.
· ? Decrease in driving distance, lowering fuel costs.
· ? Decrease in administration costs so the costs per driver decrease in total terms.
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Decreasing the time spent per stop gives you more orders fulfilled per day per vehicle. Your margins can increase two ways from this, you can decrease the number of vehicles you use and maintain the same number of orders. Or if you're in a good market, you can use this to go out and get more business and increase your total number of stops served without increasing your current cost base. Both options make you more efficient per truck, just in a different manner.
Zendera finds the shortest route between stops, based on your time windows, traffic, local conditions, the type of truck you use and a range of other factors. Because of this, we decrease the distance driven per order,? sometimes up to 20-25%. For customers of ours with their own in-house trucks where they themselves cover all the costs, this savings goes straight into their pocket and cuts large costs from their logistics.
Zendera cuts the number of tasks the dispatcher must perform per hour. For one of our customers, this went from 90 to 30 tasks per hour, and he was able to cut one evening shift of dispatchers and cut his day shift from 2 to 1 dispatcher. This cut his dispatching costs by 66% with a corresponding increase in margins of £130,000 per year.
Zendera makes our customers much more efficient without increasing their costs, and there are different ways our customers do this. Some decrease the number of trucks they use, some increase their sales, and again choose to drive as environmentally clean as possible. Regardless, Zendera has helped them unleash their resources and helped them make their companies better.
Curious about how Zendera's digital dispatcher could benefit your business? Reach out to [email protected] and say hi!