Évora, 26th of January, 2023 — The distance traveled empty is not necessarily harmful, if it is considered in the quotation of the transport service, guaranteeing that we operate with a positive margin. However, reducing the distance covered when empty allows us to be more competitive.
Control of contracted transport ratio vs. empty running.
The ratio of contracted transport distance vs empty distance will dictate price competitiveness to the customer:
Total cost calculation:
Assuming transport cost €1/km
100km empty + 900 km service = 1000 km traveled
1000 km at 1€/km = 1000€ total cost
For the customer:
Assuming service price €1000 (0% net margin)
€1000 / 900 km = €1.11 / km
Empty kilometers reduce price competitiveness.
The Freight Manager is responsible for allocating resources to new services, in order to reduce the empty/contracted transport ratio. This process is done manually and often leads to suboptimal decisions. The decision process is in the minds of Freight Managers, its impact is not measurable and there are no tools to help.
Meight developed a tool capable of reducing this ratio, through a pre-planning solution with suggestions for sets of drivers and vehicles, taking into account the distance between the location of drivers and the loading points of new freight.
Meight Platform is a powerful tool for your traffic team to make informed decisions. The main benefits:
