How This FMCG Giant Saved 12% on Their Fuel Cost with LocoNav

Overview

One of India’s leading FMCG consortium approached LocoNav to optimize their supply chain and operations in order to cut back on their fuel expenditure. This multinational runs its trade by means of an expansive distribution network. The company has been in operation for more than a century, with its service network spread across 150+ countries. They have had an extensive experience dealing with production in different verticals, ranging from food and beverages to nutritional supplements.

The Challenge

Since the company documents more than a billion consumers worldwide, it was imperative for them to look into means for being more fuel efficient. As one of the leaders in supply chain across the globe, their operations pan India were not being carried out in a sustainable manner, much to their dismay.

Due to the unpredictable traffic choking the roads, the organization was unable to meet its delivery deadlines. Apart from this being a branding issue, the company reported a higher share of fuel consumption than they anticipated: a sharp 7% more fuel usage than they expected or even intended to incur.

Another problem that was highlighted by the company executives was the notorious case of idling. Delay in deliveries was an indicator for the same, apart from frequent fuel tank refills. An audit was conducted by the conglomerate internally that proclaimed an increase in the carbon footprint documented with respect to the Indian segment of their operations.

LocoNav was brought on board to undertake initiatives to improve the fuel efficiency, along with aiding the business in meeting shipment timelines and counter idling. The undertaking was carried out keeping fleet sustainability standards as a benchmark.

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The Solution

LocoNav offered a comprehensive solution to enhance the fuel utility rate of the organisation’s fleet of vehicles. With embedding of LocoNav’s proprietary vehicle tracking systems in the company’s fleet of vehicles, a three-fold approach was followed to indulge in fuel monitoring. A detailed fuel report was provided to the fleet managers that specified the status of the fuel level in each of the vehicles under their jurisdiction. The fuel spending allowance was regulated and was distributed threefold:

  • Fuel spent by individual drivers
  • Where fuel was being purchased
  • Drivers that were buying the most fuel

With this data, the need to allocate fuel cards was propelled. This significantly improved accountability and transparency within the organisation’s supply chain ecosystem.

Apart from this, two other facets were looked into that contributed to tremendous fuel consumption: idling and over speeding.

Idling Alerts

A dashboard was curated for the company’s fleet and supply chain management team that depicted the current position of all their vehicles on the road. This was done with the help of expansive mapping of position coordinates.

After an approximate of 10 minutes buffer, if the ignition status was turned on while the position coordinates remained the same, the case of idling was registered and the vehicle was appropriately handled. This enabled the company to minimize idling to a great extent, which in turn reflected in their fuel expenditure reports.

Over Speeding Notifications

To combat the problem of over speeding, LocoNav created a customizable tab to regulate vehicles going beyond the speed limit. The customization came from the fleet managers defining the speed threshold, along with the time range for which the vehicle remained in the same speed, surpassing which the vehicle was considered to be over speeding.

An instant notification was sent to the server that made the fleet managers aware of vehicles exceeding the stipulated speed threshold, along with identifying cases of harsh braking. The mileage of the fleet improved, and fuel costs receded.

In the end, the enterprise, after employing LocoNav’s fleet management solutions and tracking devices, was able to report a well sustained fuel economy, and was able to streamline their shipment and delivery schedules.

Effect on business

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LocoNav offers your business solutions for Vehicle Tracking, Fleet Monitoring and Telematics, along with FASTag. LocoNav helps you in optimising your operations and business while you focus on the growth of your enterprise!

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