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Big firms talk of fleet efficiency gains

Date: 26/03/2013 10:19:49
Category: Fleet tracking
Author: David Howells

A number of hauliers and distributors have spoken of how they reduced overheads by improvements in route planning.

Representatives from large firms including Wal-Mart (which owns Asda) and FedEx spoke to arabnews.com in order to extol the virtues of more closely monitoring fleets for better fuel efficiency.

Wal-Mart, for example, achieved an improvement in fleet efficiency of close to 69 per cent in 2011 when compared to the 2005 baseline. In real terms, this equated to delivering 65 million more cases yet driving 28 million fewer miles.

FedEx, on the other hand, set itself a target of 20 per cent mileage reduction over a similar period but ended up achieving 22 per cent.

The trend for becoming more efficient is something that is born out of two desires; one to reduce costs and the other to become "greener", a PricewaterhouseCoopers (PWC) report claimed.

Other firms looking to emulate such successes may want to consider their own mileage and ways it can be reduced, such as fleet tracking device to monitor journeys and report back with in-depth findings. These could then go on to influence future decisions such as routes and time of travel.

Commenting on the findings, a representative from the University of Pennsylvania, which published the PWC report, told knowledge.wharton.upenn.edu: "Adding efficiency to any part of the supply chain produces better returns.

"The good thing is that much of what we do to improve fuel economy translates to the bottom line as improved profitability. Every bit of energy you save is money in your pocket."

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