How Can 3PL Providers Cut Fuel Costs by Adopting Norma?

Fuel costs remain one of the top-line items for a 3PL provider's budget. Whether you're a logistics company that depends on mileage to earn revenue, or an operator of warehouses or other facilities, cutting back on fuel consumption is crucial for staying under budget and for staying competitive.

In today's highly competitive market, companies of all sizes are trying to cut costs and maximize their margins. But, did you know that the current fuel crisis has a solution? Keep reading to know What is Norma, and how it can help 3PL providers cut fuel costs.

What is Norma?

Norma is an intelligent route planning software developed by Softec Technologies. Norma is using Machine Learning and evolutionary computing, two key disciplines of Artificial Intelligence, to optimize logistics distribution and provide cost-effective paths that can significantly reduce 3PL fuel costs, and improve efficiency, transparency, and consistency of their logistics operations.

1. Enhance Driver Productivity

A major factor that contributes to high fuel costs for 3PL providers is driver inefficiency. This can manifest in a number of ways, such as driving too fast, making too many unnecessary stops, or taking inefficient routes.

By adopting an AI-based route planner like Norma, 3PL providers will be able to help their drivers become more efficient and cut down on fuel costs as Norma takes into account traffic conditions, weather, and other factors to plan the most efficient route possible. This can help drivers avoid getting stuck in traffic, make fewer stops, and generally use less fuel.

2. Refine Vehicle Performance

Another way to reduce fuel costs is to make sure that vehicles are running as efficiently as possible. This means regularly utilizing the vehicles and ensuring that it is not overloaded.

Norma assists 3PLs in achieving the optimal utilization of their fleet, depending on vehicles' quantity, capacity, location, and availability and it minimizes the number of journeys while also reducing fuel consumption.

3. Eliminate Unnecessary Miles Driven

A lot of fuel is wasted when drivers take inefficient routes or make unnecessary stops. Norma can help reduce the number of wasted miles by providing the most efficient route possible.

Norma uses key business and traffic rules as well as traffic predictions and vehicle restrictions so that every journey is fully optimized each time. It produces the most efficient route plan with one click. This can help save fuel and money, and it can also reduce wear and tear on the vehicle.

For example, it determines the best time to make a delivery based on the location of the customer and the availability of resources. This can help ensure that deliveries are made in a timely manner and that resources are used efficiently.

4. Cut Down the Number of Vehicles That Are in Use

Another way to reduce fuel costs is to reduce the number of vehicles that are being used. This can be done by consolidating shipments. Norma can help here by providing information on the best way to consolidate shipments and which vehicles to use for each shipment.

Conclusion

In the end, these are just some of the ways that an AI-based route planner like Norma can help 3PL providers cut fuel costs by optimizing routes and delivery schedules.

Norma can help 3PL providers plan their logistics deliveries, track shipments, and communicate in real-time. It can further help 3PL providers by reducing empty miles, maximizing load factors, and improving delivery times. Therefore, using an AI-based route planner can save your company time and money.

If you're interested in learning more about how AI technology can help your business cut fuel costs, download our case study, and read the full story on how Norma is helping 3PLs reduce their fleet's fuel consumption and emissions.