Blog /

X

minutes reading

Leer versión en españolLire la version française

Ontruck improves the ratio of collections per vehicle in the distribution of one of the largest freight companies in the world

INTRO

With over 100 years of experience in the logistics sector and 20,000 employees among the over 400 delegations worldwide for the Freight Forwarding department, this operator has found a partner in Ontruck for more efficient daily operation of its regional distribution.

Ontruck started to help this freight company in its locations in Madrid, Barcelona and Paris with urgent shipments caused by inefficiency in the fixed fleet.

Given the good results in vehicle availability and our quick capacity to react to same-day shipments, the natural next step was to help the Transport Managers in each region to avoid the need for said urgencies, making the operations in their daily distribution more efficient.

(Shipper orders from 2016)

Captura de pantalla 2019-07-11 a las 12.56.18.png

CHALLENGE

  • To reduce the operating costs implied by having a fixed fleet of dedicated vehicles, guaranteeing the goods rotation rate in a centre of over 10,000 m2.

The current routes required a varied fleet of 90 vehicles under the modality of dedicated freelancers. This implies fixed costs that cause inefficiencies during times of low demand as some vehicles are underused. Also, during peak times, extra costs are incurred due to having to hire additional vehicles.

The ratio of collections per vehicle was difficult to optimise under the fixed fleet modality. Therefore, Ontruck’s proposal to work with a flexible fleet that can be adapted to daily demand was the best option for reducing costs.

SOLUTION

AdobeStock_151808540.jpeg
  • Providing the vehicles and adapting the availability of the same to the freight company’s daily demand, optimising costs through better management of assignment and routing.

Ontruck adapts to the daily demands through its vehicles in real time, avoiding underused capacity during valley times or having to turn to extra capacity at a higher cost during peak times.

On one of its routes with approximately 25 daily shipments, Ontruck adapts its daily operation to the orders for the same day, with the freight company receiving the information every morning before 8 am so that loading can start at 10 am. Through the internal app, Ontruck accesses the shipments available in order to assign the most suitable vehicle and route.

PROFIT

  • In the first two weeks of operation, two dedicated vehicles were released, optimising one specific area by removing the fixed daily costs which are now flexible costs.

Through a daily control sheet showing the detailed expenses per route and provider, an average reduction of 5% per day has already been identified, simply by moving form 90 to 88 dedicated vehicles, covering the entirety of the route demand with the flexible Ontruck fleet.

The ratio of collections per vehicle has improved; previously they paid the same cost regardless of the number of collections, and the extra capacity was paid at a higher price. Also, savings have been obtained regarding the need for extra costs for additional vehicles.

NEXT STEPS

The goal for both Ontruck and the freight company is to continue to open new areas under the flexible fleet format in order to optimise the routes and traceability of each shipment and to achieve up to 35% savings in daily expenses for all routes.

Articles that may interest you

How to Maximise Margins with Differential Pricing and Client Clustering

Unlock revenue potential with differential pricing. Learn how to optimise profits and boost customer satisfaction with real-world examples.

Read more

AI-Powered Transport Sourcing: From Volatility to Profitability

Find out how LSPs can navigate volatile markets, maximise efficiency and boost profitability by applying AI to their transport sourcing strategy.

Read more

How to Enhance a TMS Transportation System with AI Without Reinventing the Wheel

Unlock the power of AI in TMS transportation systems. Learn how Ontruck streamlines adoption, boosting efficiency and reducing costs.

Read more

Outsourced Fleet Management: Leveraging Modern Technology for LSP Efficiency

Outsourced fleet management comes with a host of challenges. Ontruck discusses the various digital tools that can make it run more smoothly for LSPs.

Read more

En OnTruck os damos las gracias por este 2016

Despedimos el 2016 muy contentos con los objetivos alcanzados y muy agradecidos por las relaciones comerciales y profesionales que hemos desarrollado

Leer más

¿Qué peso tiene el transporte de mercancías en Cataluña?

Cataluña al frente de la logística en España. Es el gran referente nacional en el transporte de mercancía y de los más importantes en la Unión Europea.

Leer más

Los desafíos de la UE para el sector del transporte de mercancías

El año 2017 se presenta repleto de desafíos para Bruselas en el sector del transporte de mercancías jugando además un papel muy importante que afecta a todos.

Leer más

Los plazos de pago en el transporte se situaron en los 85 días de media durante 2016

El sector del transporte por carretera asume un repetido incumplimiento de la Ley de Morosidad aprobada en 2010 con una media de periodo de pago de 85 días

Leer más