38% Reduction in Costs
In this example, a client was distributing their goods throughout Australia. Their clients ranged from small businesses to large distribution centres. For close to 30years they would award a contract to different transport companies taking over based mainly on price - this seemed to work as no one really knew what else could be done.
When Alvaro Transport was invited to tender for the work, they not only wanted to provide a better service but were determined to find a solution that provided a more comprehensive vehicle and a cost to recovery ratio that was second to none. Working closely with their body builders and together with Mitsubishi Australiasia they developed a one of a kind vehicle that could quite comfortably carry 55% more product. This development not only streamlined the delivery mechanism but had a huge impact on the carbon footprint.
After 9 months and an investment of over $3,000,000.00 they had 16 vehilces ready to roll out throughout NSW. The realised savings to their client translated to 38% or hundreds of thousands of dollars each year to well over $1,000,000.00 over the term of the contract.
Savings can always be found, the amount saved is determined by a company's ability to implement change. Anyone can provide a truck, BUT not everyone can provide a solution.