Optimizing truck productivity and haulier payment schemes

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Transport logistics: Optimizing truck productivity and haulier payment schemes

Transportation costs are a major expense for cement suppliers, and so many try to make best use of their trucks in order to reduce costs by improving productivity. However, truck productivity optimisation does not necessarily imply a return on investment (ROI) for the cement supplier, as the ROI greatly depends on the way hauliers are paid in the day to day business. This paper addresses the issue of the accessible ROI through productivity optimisation in cement transportation. Based on several payment schemes and typical order books, the suitability of the payment schemes towards optimisation will be compared. The results show large variations between the schemes, some becoming more expensive while others imply a natural ROI. As a conclusion, the presentation will provide a condensed table that presents the consequences of each scheme along broad strategic recommendations assessing the expected ROI caused by the productivity optimisation.

This speech was held by Karsten Horn, Business Development Manager at INFORM, on Cemtech Europe in 2015.

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