e-magination increases fuel efficiency with a single report
CLIENT | Tricon Ltd. Zambia Tricon Ltd is an established supplier, trader and logistics company in the SADC region specialising in cold chain food distribution.
Listen to our MD explains how we helped Tricon Ltd Zambia save fuel costs with a SINGLE report using Excel. Saving the company money and time
“Diesel is a quick and easy way to access funds in Africa, so we need to know exactly how much fuel is being used so we can keep our people honest, and ourselves profitable. Our manual process was very time consuming and prone to human error,” says Madden.
Diesel is the biggest operating cost for any logistics company. For Tricon, whose refrigerated trucks need diesel to power the vehicles as well as the cold storage units, this was even more so. Visibility and control over fuel consumption is critical to running a sustainable business.
Fuel theft is an issue, but so is inefficient driving.
Wayne Madden, MD of Tricon, and his team were spending up to three hours a day managing fuel consumption expectations against the realities and having in-depth discussions with drivers.
Tricon approached e-magination who presented a solution that was, according to Madden, “simultaneously cost-effective, incredibly fast and delivered far more benefits than we expected.”
e-magination began by investigating the business need. Justin Major of e-magination says, “Once we understood the impact of diesel consumption on the business as a whole, from the quoting to clients to the final recon of the trip, we began to see how to automate the process, improve the fuel controls and increase the speed and accuracy of the quoting process.”
e-magination employed Visual Basic to code an Excel Macro, which takes a number of variables into account such as distance, weight of the load and accepted industry guidelines to determine the recommended fuel consumption per trip.
The solution is easy to use and user-friendly. Anyone in Tricon can use the tool to determine the fuel costs of any trip.
“The result is that we know, within an acceptable margin, how much fuel should be used per trip and if a driver has used significantly more we are able to address the issue immediately and directly,” says Madden.
“Simply put, 85% of our trips are running within acceptable fuel consumption levels,” says Madden. “In real terms, this means we aren’t losing money.
MINUTES NOT HOURS
Tricon now spends minutes on calculating acceptable fuel consumption levels and because the system has been proven over the past six months, the data is completely trusted and the drivers don’t question its accuracy, which has reduced the number and intensity of the management conversations.
“An unexpected benefit of the solution has been that it has made quoting easier. Instead of working out the costs manually, we now just plug the variables into the system and the fuel costs are right there. It’s so easy and quick to get the right information,” says Madden.
“It’s the perfect solution for Tricon. It gives us complete control over our biggest operating expense, keeps everyone honest and has freed up three hours each day for us to spend working on our business,” says Madden.