Inflation is a major concern for businesses as rising costs can squeeze margins and profitability, especially if a business can’t increase its prices to match the rate of inflation.
The current global rate of inflation is around 7%. So if you can’t increase your prices by the rate of inflation, there is a good chance that your profit margin will be declining.
As the cost of inputs of goods and services increases, businesses need to find ways to save money. If your business delivers goods or sends field service staff to your customers’ homes, optimizing routes could help you reduce costs in your business.
Route optimization is the process of finding the most efficient way to deliver goods or services. By optimizing routes, businesses can save money on fuel, labor, and other costs, thereby offsetting price increases on your inputs.
Locate2u, our route optimization software solution, can help your business to:
- Identify the most efficient routes
- Allocate jobs to the most appropriate driver
- Schedule deliveries in a way that minimizes costs
- Provide route navigation to drivers
- Enable direct communication between your customer and the driver
- Track the progress of your deliveries or field service staff
Here are some specific examples of how route optimization can help your business in an inflationary environment:
- Reduce fuel costs: optimized routes can reduce the amount of fuel used;
- Lower maintenance costs: optimized routes can lead to lower distances traveled by your vehicles; and
- Reduce labor costs: route optimization can help you to reduce labor costs by reducing the number of drivers you need which could save you money on salaries, benefits, and other costs associated with hiring and managing drivers.
Another intangible benefit is the improvement that route optimisation and driver communication can make to your levels of customer service. Timely deliveries build customer loyalty and satisfaction, which will help you retain customers.
If you are a business owner, I encourage you to consider using Locate2u to help you save money and counter the impacts of inflation on your business.
