Improving Logistics Operations and Reducing Fuel Expenses: A Case Study of Dhara Logistics.
Dhara Logistics is a renowned logistics and supply chain company based in India. The company provides services to a large number of exporters and importers across the country. However, with a fleet of 60 vehicles, the company was facing challenges related to diesel consumption, leading to an increase in operating costs and a decrease in profitability.
THE NUMBERS
₹16 Lakhs plus saved per month
12% saving on fuel spend per month
30% reduction in operating costs
THE CHALLENGE
Dhara Logistics was facing significant difficulties in monitoring and managing the diesel consumption by their vehicles, which was causing an increase in their fuel expenses. The lack of an efficient monitoring system meant that the company was unable to track the fuel consumption of its vehicles, leading to an increase in operating costs and a decrease in profitability.
THE SOLUTION
To tackle the challenges arising from the lack of an efficient monitoring system, Dhara Logistics decided to seek help from an expert. They turned to a logistics technology company that offered different services to help them find the right solution.
The logistics technology company suggested installing fuel sensors in the vehicles to monitor their diesel consumption. The sensors were connected to the cloud-based system, which enabled real-time tracking of the vehicles' fuel consumption.
THE RESULTS
After the installation of the fuel sensors, the fuel consumption of the vehicles was reduced drastically. Dhara Logistics was able to monitor the fuel consumption of its vehicles, and track them in real-time. The real-time tracking allowed the company to identify any discrepancies in the fuel consumption of its vehicles, enabling it to take immediate corrective action.
As a result of the installation of the fuel sensors, Dhara Logistics was able to reduce its fuel expenses significantly. The company was also able to optimize its operations and improve its profitability.
CONCLUSION
The adoption of a real-time fuel monitoring system helped Dhara Logistics to overcome the challenges it was facing related to diesel consumption. With the installation of fuel sensors, the company was able to reduce its fuel expenses, optimize its operations, and improve its profitability. The success of this initiative highlights the importance of leveraging technology to optimize logistics and supply chain operations.