This presentation examines the traditionally fragmented approach to technology in the LP Gas delivery industry compared to business outcomes gained when that technology is integrated across an organization. The end-result is an ability to leverage existing technology to predict route profitability before dispatching fleet assets.
Originally presented by TouchStar Americas General Manager Shelby Ahmann at The 27th World LP Gas Forum and 29th AIGLP Congress incorporating the 2014 Global Technology Conference.
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Cost-to-Serve Reporting and the Unrealized Potential in the Propane Industry
1. Cost-to-Serve Reporting and Planning
The Unrealized Potential in Propane Technology – Proactive Profitability
2014 WLPGA Global Technology Conference
Shelby Ahmann
TouchStar
2. Introduction
Today, nearly everyone has some level of automation – technologies
improving efficiency and reducing costs.
Mobility & Administration
Automation
An integrated solution enables predictable profitability prior to
dispatching trucks.
Telematics &
Fleet Tracking
On-Board Inventory
Delivery
Automation
Fuel Management
3. Typical Challenges in the Propane Industry
Customer Management
• Exact location
• Proximity to other customers
• Tank level & capacity
• Predictive usage
Route Management
• Route building processes
• Based on tribal knowledge
• Defined routes/territories
Operational Cost Awareness
• True cost of delivery?
• Looking past usage & price per gallon
• Only available post-delivery
Fragmented Data Sources
• Drivers & Vehicles
• Dispatch
• Management
• Sales
• Customer Service
4. Where the Industry Can Improve
Improve Data Availability
Gather useful, meaningful information at every delivery step and establish Key Performance
Indicators. Enables intuitive reporting reflecting most important KPIs.
Consolidate Vehicle Technology
Enable multiple functions within a single user interface:
• GPS Navigation
• Telematics & Driver Behavior Management tools
• Bread Crumb Tracking
• Customer Billing & Invoicing
• Automated Time & Attendance/Activity/Payroll on-board vehicle
Integrate Technology Across Entire Organization
Measure available technology for predictable profitability via meta-data collection, deliberate
planning, and accurate reporting.
7. Business Outcomes
Improved Resource Management
• Drivers and trucks
• Eliminate reliance on
seasoned/experienced employees
• Scalable business
• Consistent workflow
Business Intelligence
• Predictable costs & profit
• Optimized routing based on profitability
• Service on your terms
• True cost-to-serve planning & reporting
Customer Service
• Proactive customer management
• Anticipated delivery scheduling
• Web portal self service
• Reduce out of gas situations
Risk Management
• Accident prevention
• Asset protection
• Margin management
9. Business Outcomes - ROI
Improving processes across the business through integrated solutions allows for tasks to be
completed more efficiently, ultimately reducing time and associated costs spent on these each day.
Potential Cost Reduction Through Integrated Technology
and Cost-to-Serve Reporting
50%
90%
60% 50%
20%
Pre-Trip
Processing
Driver Time &
Utilization
Back Office
Data Entry
Driver
Communication
Dispatch Preparation,
Scheduling, and Routing
Post-Trip
Processing
Overall reduction in driver,
dispatch, and associated
administrative costs.
29%
15%
10. Testimonials
“Automating our delivery process allows us to capture all relevant field
data. We integrate data collected with each of our back office systems to
improve planning and dispatch processes, ensuring efficient and
profitable routes are created.”
-Boyd McGathey, Chief Operating Officer
“We have used automated field and delivery processes for many years and
continue to leverage additional solutions to integrate systems across our
business. This has proven to be a highly beneficial investment for Blossman
as we continually experience improved efficiencies and enhanced planning
capabilities.”
-Randy Doyle, Chief Financial Officer
11. Conclusion
Is Cost-to-Serve Planning and Reporting possible?
• Yes – though not by using technology as we do today. Individual, fragmented
technologies can only do so much.
• Consolidated in-cab technology communicating data to back office systems
enables true Cost-to-Serve capabilities.
• Drastic shift from most current operations.