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Are Higher Gas Prices Costing Your Business?

Are Higher Gas Prices Costing Your Business?

The price of fuel per gallon is one of the many ways individuals are affected by the constantly shifting industry costs, and for those who commute to the office, it can become a considerable expense. For distributors, the changes in gas prices can be the difference between sitting on a gold mine or losing valuable resources. For the small distributor, changes in gas prices can make all the difference in determining how much it costs to truck goods across the area. How can smaller businesses take advantage of IT solutions to keep costs down while gas prices increase?

Many distributors fall into one of two categories: those who are tied to a larger organization, and those who are contracted by one. Smaller manufacturers rely on an efficient distribution of their product, which ultimately means that shipping costs will ideally be as low as possible--otherwise, the consumer feels this in the price. In 2018, the fuel supply is actually outpacing demand for the first time since the gas price spike of 2014, meaning that gas prices are up, but they aren’t really impacting consumers as much as you might think.

This is actually due to the distributor, or the manufacturer that deals with the distribution, analyzes the costs of doing business in this sector. However, when gas prices rise (as seen with the almost 30% increase in cost since last May), the cost is inevitably transferred to the distributor. This happens for any organization that utilizes fleets of vehicles to transport goods. Gas prices have a huge impact on the economy in ways that you might not immediately think of, thus making it a good idea to look for strategies to decrease the costs of running an organization reliant on this expensive asset. Information technology provides a great opportunity for businesses in all industries to cut unnecessary costs and streamline operations.

Fleet and Asset Tracking
Thanks to tracking solutions, these organizations can significantly cut down on the price of distribution by taking only the best routes. A company is able to reduce the amount they spend on fuel costs while also cutting down the amount of maintenance needed to keep the vehicles on the road. Furthermore, a fleet tracking solution can reduce fleet insurance, making it more affordable than ever before.

For example, each vehicle in the fleet can be equipped with GPS devices that are tracked by web-connected endpoints. GPS technology can calculate the best, most efficient route for the purposes of saving fuel. Other variables that can influence the best route include hassles like construction and bottlenecks in traffic, all of which can be avoided, ultimately cutting downtime and optimizing resources to make the most efficient service possible.

Similarly, this technology can be utilized to better track just about any assets your organization uses to maintain operations. By using this to your advantage, you can ensure that you have a full grasp on all of your shipping costs, procurement processes, distribution, and so much more. Just imagine the success your organization can achieve just by cutting out a tiny fraction of your business’ expenditures.

If you like the idea of saving money, your business could benefit from fleet and asset-tracking software. To learn more about how your business can take full advantage of its technology assets, reach out to Symmetric Engineering Group at (813) 749-0895.

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