Inflationary increases in groceries and household items are among the most notable increases hitting stores, and although consumers are only just starting to feel it, logistics companies have been grappling with the issues for some time. behind some of these price increases.
The prices of ingredients and raw materials have increased significantly over the past year due to higher wholesale costs, particularly in the consumer packaged goods sector. At the same time, transport costs are also high, in part due to high fuel prices, which reduce the margins of freight transporters.
“Transportation costs are definitely increasing. With fuel prices and a shortage of truckers, it’s getting harder than ever to ship goods,” said Campbell Smith, account manager at PTV groupsaid.
Although many factors are beyond their control, fleets have been able to better control their transportation spend by using PTV Route OptimizerThe functionality of is designed to meet specific last mile delivery logistics needs for CPG items. By using the tool, savings of 17% or more are not uncommon, according to the PTV Group website.
Even in times of relative stability, the delivery of consumer packaged goods comes with its own unique set of day-to-day challenges, which have only intensified in recent years with the popularity of e-commerce and the increase in population in urban areas.
“We see a lot of challenges with moving certain types of vehicles into certain specific urban regions,” Smith said.
Due to the nature of the goods transported – such as dry, refrigerated and frozen goods – and their varying requirements, route planners have already spent hours trying to figure out which goods can be transported in which trucks. Vehicle types, capacity availability, and size and weight attributes also influence this load and route planning.
These factors, combined with the fact that goods are delivered over the last mile through densely populated areas, further complicate the planning process due to legal restrictions, traffic patterns and construction zone considerations. With PTV Route Optimizer, this planning process has never been easier.
Route planners manage many trucks at once and using PTV Route Optimizer they can easily assign loads to all their assets and vehicle types at once and find the best routes while considering these considerations.
This means lowering transport costs by minimizing unnecessary miles along inefficient routes, reducing fuel consumption and vehicle wear and tear, all in all adding up to serious savings every year.
At the same time, route optimization allows fleets to fulfill more orders in the same amount of time, which further increases revenue and frees up the capacity to accept more orders as demand for CPG items and e-commerce products remains an essential component of consumer spending. habits.
With PTV Route Optimizer, carriers are able to avoid arduous planning time, freeing up more time for other productive tasks.
“Nothing is theoretical. It is something very pragmatic. So, in the end, it allows on the one hand to reduce costs and on the other hand to increase the reliability of the services you provide”, said Matthias Hormuth, president of product management logistics at PTV Group.
PTV Group plans to launch its tracking visibility tools soon, which will allow drivers to notify customers of their estimated time of arrival, strengthening relationships with the other side of the supply chain.