How transportation scheduling software impacts Fuel economy

transportation scheduling software

Transportation scheduling software can add much more value than an operations tool if employed strategically by the logistics companies. One of the main reasons for the transportation companies not being able to tap into the full potential of advanced transportation scheduling software is a lack of clear understanding about the prospective benefits. One of the most attractive and worthy benefits of investing in a good transportation scheduling software is observed in improving fuel economy. But again, to achieve an improved fuel economy, the logistics company really needs to focus on the constituent goals which combinedly helps in achieving the end goal. Transportation scheduling software can definitely help in the process afterward, but to select and implement right transportation scheduling software, a clarity of the end goals is irreplaceable.

General criteria to observe the improvement in fuel economy can be the fuel consumption. But it is not enough to understand the overall impact of the transportation scheduling software on the company fuel profits. We need to go a little deeper into the statistics and KPIs to judge that. For the same purpose, we are trying to decipher the individual areas of transportation operations where the transportation scheduling software contributes to achieving a better fuel economy. We will be also looking into the features which help in this to give you an idea of what should be your prime focus while opting for a new transportation scheduling software next time.

transportation scheduling software

How transportation scheduling software impacts Fuel economy

Optimized Network Design

While it might look too technical to understand, practical implications of optimized network design can be huge. In simple words, optimized network design in transportation scheduling software solution refers to the planned route which is used by the carriers for pickup and drops. Now, what are the parameters which can optimize a route? These are predefined in the transportation scheduling software as the route maps, the distance between distribution centers, the tentative time taken by the carrier, type of shipment that is going to be transported and intermediate stops. All of this information is then churns out to create a network which supplies maximum freight with least wastage of time and resources in the trip.

A strategically optimized network design can drastically reduce the detention periods for the carriers, which helps in faster shipping. Overall it helps in reducing the trip time by removing avenues which create delays which helps in making trips much more efficient.

Run fewer miles (Route optimization)

While we are judging the benefits of optimized network design in terms of trip time, we should not forget the exact reason which is responsible for fuel consumption. The total miles covered by the carriers, if reduced, directly impacts the fuel consumption. This means that if the transportation scheduling software is able to deduce a fine balance between the most profitable as well as the shortest route for shipping by the carriers, it is directly attacking the problem of unnecessary fuel consumption.

There is a reason that route optimization is one of the trickiest parts of the transportation management. It is a function of many variables such as weather, unexpected breakdowns, carrier and highway conditions and dynamic freight demands. For an instance, if the freight forwarder is unknown about the demand which is going to hit the market after 2 hours, he/she definitely find it difficult to accommodate the changing scenario in their current working scheme. But a completely connected and dynamic transportation scheduling software can aptly find out a new route plan to accommodate these changes in order to avoid severe loss of human lives.

Exhaustive Variable Monitoring

Transportation scheduling software based on conditional programming and macros to address the variable monitoring objective comes with extra control over operations. These solutions are capable of catering to unexpected scenarios without breaking down under the dynamic changes. Freight transportation is a fairly dynamic industry where automation needs exhausting planning to meet the performance parameters perfectly. By focussing and fixing these pain points, the transportation scheduling software not only becomes more dependable for the logistics companies but also curbs down the excess of fuel that is consumed to compensate for these variables.

Fuel Cost Management

While efficient planning ensures that the carrier runs lesser miles to deliver more, effective reduction in fuel consumption demands more innovative ways. Fuel cost management by transportation scheduling software encompasses the other aspects of freight transportation which affects not only consumptions but also the overall cost incurred on fuel. This is done by keenly assessing the parameters such as fuel tax, rates, and ROI generated over the planned route. This also motivates the transporters to accept new routes which might not be as profitable at first glance but can add huge value with expansive connectivity, lesser taxes, and more affordable fuel options.

Robust IFTA Reporting

International Fuel Tax Agreement (IFTA) compliant reports helps the transporters to plan the trips keeping tax cost structure in consideration. This in collaboration with the transportation scheduling software can help in devising the scheduling routes and options where the shippers are able to do maximum savings on IFTA taxes. Due to varied and vast nature of these fuel taxes, it is difficult to keep a tab on their impact on overall cost. With the transporters involved in multimodal transportation which is spanned across multiple geographies, it becomes much more complex. Having an inbuilt system which can take care of all these calculations makes the scheduling and planning efficient and faster.

Supply chain transportation majorly depends on 3 important pillars- Freight, Carrier and the driver. An expansive transportation scheduling software ensures that all three of these work in a rhythm to accomplish more with the least resources. Fuel economy can be only be improved when these objectives are attained by the transportation company completely and thus reducing the impact of fuel price dynamics on the business profits. So far we have realized that this is an achievable task till transportation scheduling software are conceptualized and loaded with the features which support fuel economy directly or indirectly.

One of the major difficulties that the logistics companies are facing in adapting these type of transportation scheduling software is their specific needs which demand customization. It is obvious that every logistics company works in a different market with different players in place. In such scenario, one size fits all type of transportation scheduling software doesn’t work. Seeking to this problem Dreamorbit always assures that a bespoke solution is provided to the customer which addresses the major objectives of the customer. To discuss any query related to transportation scheduling software, you can get in touch with us for a free discussion anytime.

About DreamOrbit:

DreamOrbit is a Logistics and Supply Chain Technology Development company. We have been creating meaningful and reliable software products for the industry which is “Always on the go” for the past half decade. We are highly motivated team aimed at innovation. Our philosophy is to “keep challenging the potential within”.  With the support of our happy customers and dedicated team, we strive to provide best possible solutions to industry problems. Visit our website to know more aboutDreamOrbit.

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