Is gasoline getting more expensive? Methods to reduce fuel costs in goods delivery
Unfortunately, discussing inflation and price hikes in Iran has become part of our daily conversations. In recent months, news of the rising cost of essential goods has become the main headline every day. Since the increase in these prices directly affects people's lives, it also impacts various expenses such as rent, taxi fares, and even salaries. Besides these confirmed price hikes, there are also rumors about gasoline becoming more expensive, which could not only heighten public dissatisfaction but also further increase the aforementioned costs.
Inflation has become a part of our lives as Iranians.
Inflation, a Burden on Online Businesses
This price increase affects not only families' lives but also business revenues, especially online businesses. In this situation, businesses have three options to continue; 1- Increase service prices 2- Cease operations and 3- Reduce costs.
At first glance, raising service and product prices seems the most logical option. However, if we take a broader view, we will realize that when the prices of the most basic needs have doubled, purchasing and using online business services may no longer be a priority for people, and the result of increasing service prices could be losing customers.Ceasing operations, although it may not seem logical, unfortunately, can be an option for small and startup businesses.And now the third option; reducing costs. A difficult option that if company managers and each business sector knew its impact on their organization, they would have taken such action sooner than the price hikes. But the question that may arise for you is how to reduce costs?
Reducing Costs in the Delivery Section of Online Stores
If you own an online store that delivers goods to your customers and have decided to reduce your costs; before doing anything, you must identify various costs, make a list of these costs, and make some tough decisions regarding these matters.
Let us explain more with an example:
Suppose you are an online store with 5 couriers, each of whom goes to 10 locations in the city daily to deliver customer orders. The average salary of a courier in Tehran is between 10 to 15 million Tomans. (This number is lower in other cities. So if you manage a business in one of the cities, you need to calculate these numbers and the numbers mentioned later according to your city.) So far, you need to pay about 50 to 75 million Tomans in salaries monthly. With the rumors about gasoline prices, it can be guessed that if it becomes more expensive, the rate will be between 5 to 6 thousand Tomans per liter, and assuming each courier consumes 50 liters of gasoline monthly, your gasoline cost will be 2.5 million Tomans monthly. Besides these costs, you must account for unexpected costs, vehicle repair costs, and other expenses.
So overall, for an online store with 5 couriers and an average of 50 orders per day, the monthly delivery section cost is between 60 to 80 million Tomans.
But how can these costs be reduced?
Cost Reduction Strategies in the Order Delivery Section
As we said, the first step in reducing costs is identifying and listing them. After doing this, you should move towards optimizing costs. This means comparing existing resources with demand in each section and optimizing various processes. For example, if you have 50 orders and 10 couriers daily, these orders can also be managed with 5 couriers.In addition to this point, there are many tools and software that help us reduce these costs. For example, for customer relationship management, you can use software like Didar or HubSpot. There are also many financial management software options that help you manage your organization's finances. Using these tools not only helps save your time but often reduces your costs as well.
One of the tools suitable for businesses with couriers and delivery is courier management and order delivery software.
How Does Logiico Help Reduce Costs?
Logiico is courier management and order delivery software. Logiico provides you with the tools to have complete control over your order delivery process and optimize your business's order delivery process significantly with comprehensive and intelligent reports alongside real-time tracking, reducing fuel costs, and even decreasing the number of couriers in your organization.
The biggest advantage of Logiico for you is that you will be informed of your couriers' status in real-time and perform activities such as reporting and assigning tasks to drivers and smart routing more easily than before.
With Logiico, you can easily enter missions (customer orders) into the system (using Excel or manually). Assign these missions to your drivers and couriers and determine an optimized route for these missions using Logiico's intelligent algorithms. These missions are displayed in the Logiico Android app, which must be installed on your couriers' mobile devices, and your courier can start their work.
Once the courier starts working, you can view the real-time location of couriers along with the online status of order deliveries, the battery charge level of the courier's mobile, the number of stops on the route and the duration of each stop, the online or offline status of the driver's GPS, and the waiting time of the courier at the customer's location live. In addition to these, in the Logiico reports section, various reports from all parts of the order delivery process are provided for you to receive the report you want from your business.
Sign Up and Get a 7-Day Free Trial of Logiico Software
To view the demo and get a free trial of Logiico, simply use the link below to access the Logiico demo. After entering your information, you can explore the Logiico software environment.
Click here for free demo registration and 7-day trial
After free registration, our sales experts will contact you to determine your needs and guide you towards a suitable purchase.
How Do I Start Using Logiico?
After viewing the Logiico demo, testing it for seven days, and seeing its impact on your business, simply use the free trial panel to click the purchase button and select your desired package. After payment, your panel will be activated with the same username and password you used to access the demo, and you can start your work.
Conclusion
Costs have increased dramatically. This rise in costs has made it difficult for businesses, especially online businesses. The most logical way to survive in this situation is to reduce costs, which is often overlooked. There are various ways to reduce organizational costs, but before starting anything, it's necessary to identify the current business expenses and optimize them as much as possible. Once the list of expenses is clear, use various tools and software to reduce these costs. The Logiico delivery and order management software is a useful tool that helps businesses involved in customer delivery to significantly reduce their delivery costs.
For more information about the Logiico delivery and order management software, visit the Logiico website. Website address: logiico.net
