According to experts, UK fuel prices are continuing to rise. With petrol prices predicted to hit £2.50 a litre, and diesel to rise to £3, and show no sign of slowing down.
For businesses that rely on product delivery and distribution, this poses significant cost challenges. And as these costs accumulate, UK businesses are likely to experience an increase in pressure in an already tight economic environment.
To navigate this challenge, in both the short term and the long term, here’s our advice.
The most logical to reduce spend on fuel is to reduce the number of miles a business is running.
This doesn’t have to mean taking fewer orders and making fewer drops. Instead, it means being smarter with delivery routes.
Through route optimisation businesses can quickly produce efficient and reliable routes which take into account traffic conditions, road works and delays, vehicle capacities, order volumes, and delivery time windows.
All of this information supports businesses in building more efficient routes that reduce excess mileage.
MaxOptra route optimisation, for instance, has been proven to reduce daily mileage by 20%!
As fuel costs rise, businesses may find themselves pressured to pass increased costs onto their customers. Particularly in terms of delivery pricing.
That is unless they are able to cut costs elsewhere.
Reduction in miles will of course save money in fuel costs. But there are other business costs that can be reduced so that brands do not feel the pressure to increase prices for their customers.
For instance, by creating routes that are more efficient and logical, businesses will find that they actually need fewer vehicles to complete their routes. Fewer vehicles brings significant costs savings. There is the cost of the vehicle itself, fuel, tax, insurance, and upkeep.
As well as tactical ways to reduce costs, there are strategic practices that can be embedded into the business for long term cost savings.
By educating yourself and the wider business on the driving habits that can increase fuel consumption, such as fast acceleration, driving in low gears, and speeding, your employees can support the business whilst saving money and the environment.
If, however, you’re still feeling the pinch of rising fuel prices, then speak to the experts.
At MaxOptra we offer industry-leading route optimisation technology, alongside the support of our industry experts that have worked with delivery giants such as Amazon.
Contact us to find out how we can support you and your logistics operation.