There’s Focus Placed on Material Costs, But What About the Cost of Trucking Inefficiencies?

May 29, 2019 Karli Langner

In the construction industry, construction project costs are subject to many things; including: weather, worker injury, material costs, labor issues, and delays. Keeping costs contained and as low as possible makes for a successful construction operation. Half of the costs of a project are attributed to the handling of materials. It is important that project leaders know what materials they need and how much of the materials are required.

Having an accurate cost assessment before the project begins is a great way to keep your money in check. You want to clearly identify every task, what materials it will require, the labor involved, and how long the task should take. You should also make sure projects run on time and are not delayed, which can raise total job costs. Using technology to manage materials costs can keep your project in check.

But What About the Cost of Trucking Inefficiencies?

Significant inefficiencies exist in the transportation legs of construction projects. Any time a truck driver has to climb down from his truck to punch in job information, then climb back up into the cab, inefficiencies occur. If the truck driver waits in line behind a slew of trucks, inefficiencies occur; and at an environmental level, idling at gates or in a line of trucks also uses unnecessary fuel and emits CO2.

Per the American Transportation Research Institute, the cost of operating a truck is $1.69 per mile. When routes are optimized, truck drivers can cut down on mileage, helping to lower fuel usage and save time. Knowing where drivers are in real-time allows you to message the driver if there is a change in plans so the driver can be diverted to another location or use a different route.

To improve efficiencies and reduce wasted fuel and man hours, your organization needs a robust supply chain solution that provides real-time data and improved communications.

Better routing of trucks, automated check in/out processes, removal of paperwork, and better scheduling will improve transportation efficiencies. With hundreds of companies working on the same construction project, it takes a smooth orchestration of material flow to ensure that trucks arrive at the right location at the right time. Information is power in this situation.

Command Alkon’s supplyCONNECT helps to manage inbound shipping processes and costs where you can find additional savings and efficiencies. With supplyCONNECT, users gain improved visibility, better efficiencies, reduce waste, and rate and fee management – to the tune of about 10% savings.

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