In our latest post, we are taking a statistical look at Pantonium’s operations and cost-effectiveness. We feel data is a useful tool when evaluating fleet management software and the value it can provide. Measuring performance and analyzing statistics helps illustrate the benefits to transportation management companies and how this type of technology can help their bottom line.
Without using tangible metrics to help define success, deploying new tools can easily become subjective and difficult. For example, a common complaint from dispatchers when using new paratransit software is how they do not care for the way the optimized routes “look”. What does “look” mean, in this case? While an aesthetically pleasing design and easy-to-use interface are important to software, these components are not worthwhile if they are not serving to strengthen a company’s numbers. If the goal is reducing total miles and vehicles, then the trip plan may not look like the routes put together in the past. However, the vehicle fleet management software may have taken out 15% of the total miles driven and 10% of the fleet resources used to service the same number of trips. Evaluating success from this perspective is much clearer and more logical and can play an important factor in setting expectations with users to help ensure the expected value is achieved from the optimization technologies.
Capturing and using operational data to help with business decisions can be very helpful for people transportation businesses. A study on large successful organizations by analyst and advisory firm Bloor Group confirms 75 percent of these companies already have operational data reporting tools. As well, a further 51 percent are in the process of deploying some means of capturing operational data. In the world of people transport, especially medical transportation management, evolving from relatively manual paper processes into more data centric processes and strategies can be the difference between staying competitive and closing up indefinitely. For more information on how data reporting and virtualization helps businesses, check out a video interview with Bloor Group senior editor Mary Jo Nott regarding data virtualization here.
Operational data provided by integrating technology into the day-to-day operations of a business has also proven to be a time saver. The improved operational efficiency of people transportation companies is made possible by the ability to obtain real live data at any time. A report by the Aberdeen Group found 93% of required information for businesses is available in real-time and on demand in best in class organizations. Today, people transport companies are able to find the data needed to help with strategy and decision-making on the fly with cloud-based visibility and transportation management software.
And now, on to the numbers:
“How much will it save me?”
This is the question everyone asks when thinking about adding route optimization tools to their business. The short answer is 5% – 15%. The long answer requires some thought around the degree of change associated with use of optimization technology. The low side comes from optimizing the current processes and taking into account the current restrictions faced by the business. The high side of the range is based upon looking at the business processes and restrictions and inquiring on what can be done differently to take full advantage of the optimization technology.
Competitiveness
– + 75% of organizations already have reporting tools
– + 51% of businesses plan to implement operational data
– + 16.71% compound annual growth rate predicted by TechNavio analysts regarding the Fleet Management System market in the Americas over the period 2014-2019 (as reported here)
– + 93% of required information available in real-time and on demand in best in class organizations (as reported by the Aberdeen Group)
Operational Efficiency
– – 75% reduction in overtime
– + 12-20% reduction in labour times
Labor savings are realized through automation of back office activities as well as driver accountability resulting from increased visibility. In addition there are savings from reduced exceptions and errors. Other operational efficiencies not quantified include:
– Increase in speed and promptness in serving customers
– Reduced communication time between customer service, dispatch, and crew
– Reduced time to find historic information
– Reduced time for accounting and billing
– Reduced field-based exceptions
Environmental Factors
– Up to 20% decrease in mileage driven
– 90% reduction in paperwork
Reduced paperwork from order forms, vehicle logs, driver logs, reports, etc.
Economics
– + 20% employee efficiency improvement
– + 20% service profitability
Fuel Costs
– + 15% of transportation service costs saved by utilizing routing and tracking technology (mostly based on reduced fuel costs alone)
Routes planned using estimates and rules of thumb as opposed to route optimization technology can account for up to 15% of a vehicle’s fuel consumption. Any reduction in unnecessary detours creates an immediate impact on fuel costs. As labor costs increase, there is an increased demand for finding a more efficient way to operate without compromising service. Capturing operational data can play a key role in helping companies reduce their labor costs through technology.
These are just a few of the statistics available to illustrate how utilizing web-based fleet management software can improve the margins of people transportation businesses everywhere. For more data on Pantonium’s fleet management software system, please feel free to email us at info@pantonium.com or tour our system here.
