Costs are Rising…Technology to the Rescue?
If you could increase revenues, reduce expenses and improve profits without adding a single truck, employee or computer, would you do it? Of course you would. And many of your competitors are doing that now, but how?
A new technology has been quietly gaining acceptance in home comfort in recent years, but most fuel delivery and field service companies are only just catching on. Are you aware of how much more your business can accomplish with the latest smartphones and mobile devices than with the older cell phones that they are replacing?
Potential Cost Savings
The advent of smartphones and tablets is ushering in new opportunity for fuel delivery and field service companies. Programmed with the new delivery and field service software, these low-cost devices are helping small and medium-size businesses squeeze more profits out of their operations than they had thought possible. Get additional information about Digital Age
Can technology really help small companies obtain more benefit from a business that has already carefully fine-tuned each part of the operation over years of dedicated efforts? Well, ask the small oil/gas drilling companies who installed new fracking technology and saw their profits multiply by 10. Ask FedEx, the granddaddy of fast delivery, who is in the midst of transitioning from expensive, single-function handsets to a smartphone with a FedEx app. They expect to save $70 million on the devices alone and make more than that in efficiency improvements. Ask the dairy farmer who went from milking cows one at a time to 10 at a time via new technology.
New technology can be a major change agent in an industry. Imagine what it must have been like years ago to be the delivery guy with a trusty horse and buggy while some upstarts were starting to use trucks and cars. Technology can create new winners and losers overnight. Can new technology really improve revenues and cut costs? Yes and Yes.
Powerful Devices
So what is the new breakthrough and how can it help your business? First, consider the laptop or desktop computer you regularly work on now. If it is over three years old, then it has less power than the newest smartphones and tablets. This means that when we equip our driver and techs with a smartphone or tablet, they essentially have more computing power than most anyone in the organization – all in a ruggedized, and often waterproof package that can fit in their pocket or hang on their hip. With the right software this can enable them (and us) to do more – a lot more – in less time.
The new revolution in smartphone/tablet computing lets us combine several important dispatching/distribution/field management tools all on a single device. As the illustration shows, only the biggest and most profitable companies in fuel delivery traditionally could afford point-of-sale invoicing equipment, route optimization software and fleet tracking solutions. Those software packages provided benefits, but they cost a lot and didn’t always interface with meters, registers, or back office software.
Now with the computing power present in a smartphone or tablet, all these solutions can be combined. So with virtually no hardware costs and virtually no installation costs, small and medium size businesses can leverage technology in a way that even the biggest companies have not been able to do.
Using software designed for smartphones and tablets, small and mid-size fuel companies can obtain the same benefits that have helped larger companies obtain higher profits per customer. Many independent studies show that only 20 percent of delivery and service companies have implemented a point-of-sale or fleet tracking system, but the adoption is expected to change dramatically with the rise of this new, lower-cost model.
Diagram 1: Costs and benefits don’t always match up when companies deploy software on multiple dedicated devices.
Numerous Benefits
So what are the benefits to this solution? There are many. For starters, with route optimization installed on a smartphone, not only can you save 10 to 20 percent in mileage, fuel, maintenance and delivery payroll (think 2-3 extra deliveries per driver per day), but you can now re-optimize routes on-the-fly, making unexpected deliveries profitable rather than costly. Clerical work gets eliminated, as all end-of-day work is electronically batch uploaded. An hour per driver per day is saved in routing and dispatching time, freeing dispatchers and drivers/technicians to perform more profitable work. Dispatchers also have another couple of hours freed up every day via electronic dispatch, and they can improve routing and forecasting, further improving customer delivery and service efficiency.
Most companies that implement the multi-function field management system available via new mobile smartphone/tablet technology are able to improve profits by an average of $20,000 to $40,000 per driver or technician. Most of these savings come from improved efficiencies that help companies reduce payroll and fleet expenses.
Best of all, with smartphone apps for point of sale invoicing, route optimization, fleet tracking, inventory tracking and more, you’re using a device that you can get virtually for free! Most companies that go this route find that by re-subscribing for their present field cell phone plans, their cell phone carriers subsidize the costs associated with purchasing a new smartphone or tablet. They are able to get the newest military spec, ruggedized smartphone or tablet for next to nothing, and can do it again in two years when their contract is up.
Diagram 2: Consolidating multiple applications on a tablet or smartphone reduces equipment costs and increases number of cost saving tools.
Lower Operating Costs
Imagine a five-truck operation getting an additional $150,000 in bottom line profits via the new mobile technology that is available now. This is the new way businesses in our industry are going to grow profits and fend off the ever-increasing costs of doing business. Some companies that implement smartphone apps are finding an opportunity to invest more in sales, marketing, customer service and growth, while others are taking the profits as a windfall.
This new software can be used on smartphones and tablet computers, which are readily available and relatively inexpensive, making upfront equipment costs as little as one tenth of what they used to be. Employees only need to learn one device and software system, and the company can upgrade software quickly and easily. Some of the solutions and benefits are as follows.
• Route optimization software enables companies to complete more deliveries and/or service calls per day.
• Real-time wireless dispatch software increases safety, because drivers and techs automatically get all new jobs directly on the phone/tablet so they don’t have to stop work, drive to the side of the road, or play phone tag with the dispatcher.
• A combination of electronic dispatch and instant route optimization can free up dispatchers to perform other functions, because the time they spend routing is cut from hours to a few minutes.
• Point-of-sale invoicing from a smartphone or tablet means no more lost paperwork; reduced customer invoice issues; fewer invoice errors; and faster customer payment. The system can connect to a printer on the truck and record all delivery/service information, prints exact costs, discounts, taxes, additional fees, time, date, special messages, etc. It helps your drivers/techs work faster and makes their jobs easier.
• You can simplify your onboard technology and eliminate the need for multiple systems like GPS fleet tracking equipment, single function point-of-sale computers, route optimization solutions and inventory tracking systems.
Good Screen Sizes
Some wonder if the viewable screen on new smartphones or tablets are large enough. In fact, the newest smartphones have larger screens than the best handhelds being sold today. Here is a quick comparison of the Samsung Note 3 and the leading handheld sold in our industry, the Intermec CN3.
Samsung Note 3 Intermec CN3
Screen Size 6” 3.5”
RAM 16,000-64,000 MB 128 MB
Speed 1960 MHz (Fast) 520MHz
Weight 182 grams 454 grams
Cost $200 $3,000 to $5,00
Year of release 2013 2006
Can act as full time cell Yes No (typically drivers and techs carry
a cell phone and plan)
Live Real Time Updates Yes Maybe (requires additional costs)
Signature capture Yes Yes
Turn-by-turn directions Yes (included) ? (may require additional fees)
Access to online apps Yes (included) No
Battery life 21 hours talk time 13 hours (no talk time)
Barcode scanner Yes (included) Yes (may require additional fees)
New smartphones actually provide an upgrade from the best handhelds presently used in the industry, and the new tablets have even bigger screens.
Another important advantage is the ability to consolidate all the mobile software on one device, which can mean lower expenses for hardware and training, compared to multiple-device solutions. There is no downside to the lower equipment costs associated with smartphone-based apps, because the smartphone apps can support features similar to those supported by costlier handheld devices.
Additional Advantages
Another benefit of using smartphones is that they are easy to protect with after-market protective cover solutions that make the devices waterproof and shockproof. These are available online or from a local store. Also, with the growing popularity of smartphones, companies are finding their employees to be familiar and comfortable using the devices. Get much more details about SEO Denver
Additionally, insurance policies for smartphones are inexpensive in comparison to a few years ago. A company can purchase insurance on smartphones and tablets through their cell phone company for pennies every month…try to do that with the old hand held or in-cab computers. Don’t tell the competitors but you can replace all your smartphones virtually for free every 2 years! No more capital replacement costs 5-10 yrs down the road.
Smartphones and tablets are helping delivery and service companies connect to their field employees and improve their performance – and bottom line – like never before. Don’t get left behind. Check out the new smartphone and tablet technologies today.