Reduce your supply chain working capital
Lasts weeks discussions again confirmed that too much capital is locked in the supply chain.
There are two angles to this. First you can save money by improving your supply chain control. Often companies lack the exact steering controls to manage their supply chain. You need to know them to the smallest detail. Too often companies lack these controls. In order to be competitive, you should actively collaborate with your supply chain partners, and be able to react in real time on opportunities and adverse events. If you'd like to know more on these topics, join the "Value Chain" event in Antwerp on November 13, 2014. http://www.valuechain.be/nl/Evenementen/Detail/40035/hoe-identificeer-en-ondersteun-ik-verbeterpotentieel-in-mijn-supply-chain
The second angle is the use of participation funds. In almost all regions in the Netherlands, there are investment funds of the provinces. These funds are desperately seeking for companies in the top sectors who want to grow and innovate. Logistics and manufacturing industry are in many of these funds in the sweet spot. So when you struggle with financing your primary operations and have the ambition to grow and innovate? See if you can involve one of the investment funds!
Save 10 to 25% of the cost per vehicle
This statement sounds too good to be true. Practice proves that it can anyway! Due to a recent invention, a small device that you can place in any vehicle is available. This box can record up to 200 parameters AND provide almost in real time feedback to your back office. Examples of the parameters are GPS position of the vehicle, current fuel consumption, engine revs, cornering speed etc.
But how to save money with these kind of data? Direct savings are on fuel. Practice shows that 80% of drivers will save fuel when they get immediate feedback and a "score-card" is available. Of course, the new driving behaviour has positive consequences on effect for the maintenance, accidents & damages and speeding.
Movements of the fleet are shown the map, and available to the planners. This enables them to respond quickly to disturbances. It also offers the opportunity to reduce the built-in planning margins. This leads to a higher utilization, and thus more profit.
The investment per vehicle is low. The initial cost are about 350 euros and the service fee is about 20 euros per month per vehicle. Given the amounts that other have been able to save, payback is less than a quarter!