Contract Management & Asset Utilisation
Case Study:
First Mile 3PL Logistics for a Brewery Client.
Case Study:
Client Challenge
A 90-truck contract transporting beer between breweries and depots was at risk of termination because the trucks were struggling to adhere to the fixed standards for each trip and location, and thus could not recover all of their costs from their client.
Better visibility of the actual time spent at client locations and distances travelled was needed so that they could renegotiate better standards and performance manage vehicles responsible for excess time or travel.
The Solution
By leveraging Uber’s H3 spatial indexing algorithm and accurately defined geofences for locations, BSC built a cloud solution in Databricks and Qerent that connects directly to telematics data to accurately determine time and distance spent travelling between and at locations.
Applying concepts from lean manufacturing, BSC then calculated the wasted time and KM against fixed standards for each trip, allowing the client to attribute under performance to specific locations, trips and drivers.
Solution Value
- The client used the insights from Qerent to negotiate more realistic standards for the contract.
- Underperforming locations, trips and drivers are identified and addressed on a daily basis.
- These actions together saw the contract turned around from a loss to a R2m+ profit per month.