Delivery costs for many companies represent the largest part of their distribution expenses (a recent National Council of Physical Distribution Management study revealed that it amounts to 45% of all distribution costs).
In today’s increasingly competitive environment, controlling the productivity of your delivery fleet means increased bottom-line profits.
Large investments are at stake: a tractor-trailer can cost $150,000 or more. Labor rates in many areas are in excess of $45.00 per hour, including fringe benefits. Operating costs continue to spiral upward. Consider the constantly increasing insurance costs, for example, and, just recently, the skyrocketing cost of fuel. This cost alone could have devastating consequences for any business, especially in consideration of the most recent projections made by well known economists and industry leaders.
Savings potential is huge: where the VSCS™ Program is fully operational, labor reductions of 15% to 25% are common. Fewer vehicles and drivers are required in order to provide the same delivery service or, in some cases, overtime is totally eliminated, thus generating huge savings for the company and happier employees. Also, vehicle and driver related costs are substantially lower.
Improvements in customer service and “competitiveness” are significant: customer or own-store deliveries are more timely and lower in cost. Customers are better able to plan their operations with less disruption in the delivery cycle since deliveries are faster, predictable, and reliable.
Management control of drivers and equipment is increased: The VSCS™ Program provides the tools to substantially improve management and control of all operations involved in the delivery cycle, from pre-trip, to delivery point, to post-trip.
How much time do your drivers spend in the yard once they have left the Dispatch Office?
How much time should they be spending? How much time did it take to unload the truck? How much time should it have taken?
Were they really delayed because there was no help available? When they returned to the distribution center, how long did it take them to perform their inbound yard tasks? How long should it have taken?
Have you ever thought how much more effective you could be in managing your drivers if you could show them their actual performance compared to a fair and accurate standard?
Better yet, have you considered how much easier your work would be and how much more productive your drivers could be if they were self-motivated?
How much easier would it be to reduce or eliminate delivery delays if only you had some factual management control information to support your position?
How much easier would it be to get better equipment utilization or to convince management of the need for additional equipment, if only you had accurate equipment utilization data showing the hours each piece of equipment was used every day, each week, month to month, etc. This unique program provides answers to all these questions…and more!
When it comes to a sophisticated approach to distribution and warehouse management, working with Applied Logistics was a natural. Their systematic approach saved us money and allowed us to run our distribution of nationwide products efficiently. Our partnership benefits all at Lowe's.Joseph Mabry; Executive VP of Logistics & Distribution
As one of the largest food & drug retailers in North America, Safeway Inc. is an innovative company founded on a simple value philosophy: taking care of our customers is what Applied Logistics did for us. Reliable and safe distribution and management systems allowed us to maximize our revenue.Jerry Tidwell, Sr. VP Safeway Supply Operations
Applied Logistics exemplifies the values of Snap-on. Their strong ability to demonstrate integrity, always respect the company in all situations, promote our teamwork, and listen to our inputs to suggested solutions, has made us value our partnership with Applied Logistics. Over the years our distribution, transportation and warehouse management efficiency has drastically increased due to their innovative software and management process. If you are not using it, you are simply wasting your money!Gary Henning, Operations Development