EVALUATING ACQUISITIONS THAT HAVE ROUTE DELIVERY OPERATIONS
Route deliveries are a fact of life for many consumer-focused businesses. However, they are often inefficient and represent an area that is ripe for improvement. While the existing driver management team is often confident that the way they are doing it is the best way, in many cases an objective analysis can identify areas of significant improvement.
Based on my own experience with clients, savings of up to 20% can be realized through following an organized routing process using off-the-shelf technology. A recent client of ours was able to reduce their delivery fleet from 25 down to 20 trucks, and take out 5 drivers as well. Not only did this help the bottom line, but we were able to remove the lowest performing drivers which has resulted in improvements in route efficiency and customer satisfaction.
As part of your diligence process for a target with route delivery operations, don't forget to evaluate route efficiency using an objective outside party. Your bottom line and customers will appreciate the difference.
For examples of transportation related value creation, visit - http://wynnefordsolutions.com/case-studies/