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Home » RCMME » Commercial Vehicle » Increased productivity, higher profitability

Increased productivity, higher profitability

By | August 21, 2014 5:59 am SHARE

Increased productivity, higher profitability
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In any business or industry, productivity is vital and it holds good for the transport industry too. This means making best use of both the trucks in the fleet and drivers’ time. After all, at the end of the day, it’s all about maximising the income your truck generates

R evenue depends on how far the goods are transported, the amount of goods transported and of course the freight rate. Fortunately, there is a lot you can do to optimise – payload and mileage – improve the factors that influence them.

Payload is the quantity of cargo an operator transports. It is defined as vehicle capacity multiplied by load utilisation. Mileage is how far an operator transports goods. It is defined as driving time multiplied by average speed.

Small improvements, big gains
A 1 per cent productivity increase can mean a lot more than you think.

A typical long haul truck is designed to generate a certain amount of income per year, imagine what just a 1 per cent increase in productivity would mean in terms of extra income per year. This adds up during a typical service life of 4 years! With a fleet of such trucks, it will translate into a big increase in generated income.

More cargo, more money
Despite the fact that the amount of freight being transported has grown dramatically in recent decades, there has actually only been a moderate increase in the number of trucks. A key to improve productivity is to transport more cargo with fewer vehicles, while ensuring better control of the transport flow.

Even a 1 per cent utilisation increase might seem difficult as a lot of variable comes
into play, but the fact is that every percentage improvement generates more income.

Drivers belong on the road
Round the clock, a truck owner’s operations and profits are in the drivers’ hands. “Volvo builds trucks considering the driver in mind and gives every driver the best work environment and support services designed to help him deliver higher productivity,” Volvo Trucks said.

The right truck means productivity on the move
A truck is generating income only when it is on the move. Therefore, the less time needed for fuelling, loading, checking and inspections the better. In order to get the most from your truck and make it more efficient, ensure the right truck for the task is used to maximise load capacity. Equally important, the truck must empower the driver. In addition to promoting safer driving, the right truck allows the driver to work more efficiently and effectively.

A Volvo truck is a true enabler for the driver and operator alike. Customers are able to configure the truck so that it is optimised to the precise needs of the transport assignments and operation. Drivers can look forward to superior handling and a range of world-class features and support systems that enable him or her to work more efficiently, safely and comfortably.

Dynafleet – a more efficient way of working
With Dynafleet, Volvo’s fleet management system, no matter how many trucks or what they carry, Dynafleet shows the way to a more profitable transport operation. Real time overview of every truck’s position and status, for example, makes it easy to trace deliveries and find free capacity.

Make room for more work
Dynafleet gives an overview of the vehicles best suited for a new assignment. Factors such as geographic position, remaining work time and speed limits are all weighed in to support you in making the optimal decision. The system provides up-to-date information about trucks and drivers and all the facts to make the best decisions in real time.

Every drop counts
For long haul operators, fuel accounts for roughly a third of total operating costs. With Dynafleet, one can monitor fuel consumption in real time from the office, analyse trends and find out where there’s room for improvement. Because Dynafleet improves fuel efficiency, maximises vehicle usage and reduces administration, it pays off in a big way every day.

Every improvement in vehicle capacity, load utilisation, driving time and average speed will increase productivity. It’s all about finding ways to make our customers’ trucks work more efficiently.
Jarkko Aine, Transport Solutions Manager, Volvo Trucks

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