Third party logistics companies (3PL’s) that use advanced fleet routing and resource planning tools have distinct advantages in optimizing truck and driver schedules to reduce distribution costs.  With an average price tag of $80 – $120K for an eighteen wheeler, and a $35 – $75K annual price tag for an experienced driver, the investment needed to have spare fleet resources is not realistic for most companies.  And, when opportunities are presented to expand business, these fleet operators cannot afford to spend weeks developing an optimized route and resource plan. 

3PL’s are expected to know the latest trends in shipping and to make use of best-of-breed logistics optimization solutions to help clients reduce operating costs.   A few advantages leading 3PL’s are able to provide their customers by combining advanced fleet routing and resource optimization are:

• Lower miles and hours
• Higher equipment utilization
• The ability to quickly adapt route plans to business changes
• More accurate route schedules
• Smaller gaps in truck re-dispatching times
• Better customer service levels

It’s not enough to know that approximately 20 trucks will be needed to handle the volume from an acquisition.  If the estimate is off by 10%, the $160K – $240K cost of under-utilized equipment is hard to swallow.  Companies cannot afford to keep extra trucks standing by even during robust economic conditions much less tight ones.  “Appian’s Direct Route™ and Resource Pro™ help us make the best use of our fleet resources and effectively optimize route plans for our clients to minimize distribution costs” said Marty Keppler, Vice President / General Manager of CRST Dedicated Services.  “This capability is very important in delivering value and signing new business as a result of superior cost-reduction strategies.” 

The Direct Route and Resource Pro combination allows companies to optimize fleet routing plans and optimize their truck and driver schedules using acceptable delivery windows, rolling DOT rules, slip-seating preferences, and other fleet routing constraints.   On average, plans developed by hand require 10-25% more trucks, drivers, and hours than automated plans based on proven, rules-driven systems. This equates to big dollars on the bottom line for distribution operations.  “The route and resource optimization tools from Appian give us a view into our operations that was once impossible to achieve.  The reduction in miles, hours and equipment help our customers slash their transportation costs all while delivering better service.  These tools help us become true partners with our customers and they are certainly grateful for the savings to their bottom line”, said John Reed, VP of IT at Aim Dedicated. 

How many trucks and drivers will be needed to take on that 300-store chain we’re bidding?  How many additional hours and routes are needed for the upcoming end-cap promotion?  How many trucks could we eliminate if clients agreed to a 30-minute delivery window adjustment?  In order to answer these types of questions effectively, a combination of fleet routing optimization and resource optimization tools are required.  Appian Logistics Software works with leading 3PL’s around the globe and is very familiar with the difficulties fleet operators face in effectively growing their distribution network. Nearly half of the Top 20 Logistics companies as ranked by Transport Topics magazine use Appian Logistics Software to answer these types of questions and help clients minimize distribution costs. 

For more information or to schedule a live demonstration, call toll-free to 800-893-1250 Ext. 105, or email sales@appianlogistics.com.