The best companies within the ice industry are always looking for ways to make their business more efficient, some doing this better than others. Often, the challenge lies in lowering costs and maximizing profits while maintaining a healthy relationship with their customers. One of the most important aspects of maintaining this delicate balancing act is how well ice companies are optimizing their delivery routes & allocating their resources.
When an ice company decides to cut costs by reducing the number of trucks on the road and minimizing delivery frequency, they may save on fuel and labor but risk leaving customers without ice, missing out on sales, and causing dissatisfaction. Conversely, having an excessive amount of drivers & making frequent deliveries make sure customers stay stocked on ice but can lead to premature trips, causing operational costs to skyrocket and profit margins to suffer. At the root of these problems are the traditional methods of making educated guesses based on demand and using sales history to determine where to go next.
Effectively managing a delivery schedule in the most cost-efficient way possible is challenging for many ice companies due to the unpredictable demand from season to season. However, it is a crucial factor in their success. Ice merchandiser volume sensors provide real-time visibility into the amount of ice in a merchandiser at any given time. This enables route managers and dispatchers to plan deliveries based on each location’s actual needs rather than making educated guesses about when a customer is running low on ice.
By planning deliveries based on real-time data rather than a rigid schedule, ice companies can significantly reduce unnecessary trips, saving on fuel and labor costs. Incorporating this data into an optimized route planning strategy allows ice companies to make informed decisions and maximize each driver’s inventory throughout the day. Routing strategies built on this data, have been proven to reduce diver frustration, increase efficiency, and enhance overall productivity and job satisfaction, positively impacting the business.
By having a volume sensor attached to the merchandiser at a location, you can say goodbye to customers prematurely claiming they are out of ice and having to rely on their word alone and customers who refuse deliveries when they are near empty. In each case the data from the sensors can be used to make informed decisions about sending a driver to their location.
For customers who often refuse deliveries when they are almost out of ice, route managers can call and say, “John, I know you’re at 10%. If I send a truck, will you fill it?” If the customer says no, it can be noted within Cool Running Software to call them again when it is empty. If the customer says yes, their approval can be noted for the driver and they can be instructed to fill it.
When a customer calls and claims they have “NOT ONE BAG LEFT,” a quick look at the sensor data allows ice companies to verify their claim. The call can then be noted and the delivery can be routed based on the sensor reading using Cool Running Software.
By using both Cool Running Software & the data collected from ice merchandiser volume sensors ice companies can keep their most difficult customers satisfied while saving on the fuel & labor needed to service them.
Ice companies that manage their fleets efficiently and maintain their vehicles well can significantly reduce costs and extend the lifespan of their trucks. Volume sensors and the benefits of route optimization play a crucial role in creating a strategy that guarantees each truck in the fleet has a clear purpose when on the road, thus reducing unnecessary wear and tear on vehicles.
During the off-season, each truck sent out can be planned to visit only the stops that need ice.
For example, if two trucks were originally covering 28 stops, the routes can be optimized to reduce this to one truck visiting 12 stops that actually need ice. This optimization reduces unnecessary trips and ensures that resources are used efficiently.
In peak season, volume sensors make certain that each truck sent out is hitting stops that are genuinely low on ice.
For instance, instead of sending out 6 trucks to cover 90 stops (with 5 stops not needing ice and 20 stops still at 75% full), the routes can be optimized to 5 trucks covering 12 stops each, totaling 60 stops. All these stops will need ice, making each trip profitable and eliminating non-productive trips.
By reducing the number of trucks on the road using volume sensors and utilizing Cool Running Software’s vehicle optometer tracking, ice companies can know exactly which vehicles to send out, achieving significant cost savings on fuel, maintenance, and labor.
With more available trucks, fewer unnecessary stops, satisfied drivers, and real-time insight into customer inventory levels, ice companies can leverage the benefits of volume sensors to expand their delivery radius. The money saved through efficient route planning allows for confident expansion. Without access to the real-time data provided by volume sensors, ice companies might hesitate to pursue expansion due to concerns about service quality at distant locations. However, with this data, ice companies can be confident that there will be no drop in customer satisfaction as they extend their reach.
Leveraging the benefits of Ice merchandiser volume sensors & Cool Running Software, Olmsted Ice saw their delivery radius double & their market share grow as a result.
By leveraging the real-time data from volume sensors, ice companies can increase their average invoice amount. With more available trucks and fewer unnecessary stops, companies can consolidate deliveries, making each truck fully loaded and maximizing each trip. Efficient route planning and resource allocation allow for prioritized deliveries to locations running low on ice, making each delivery significant.
Olmsted Ice implemented volume sensors and Cool Running Software, leading to a 48% increase in their average invoice amount. This optimization allowed them to boost revenue without increasing operational costs, demonstrating the significant impact of data-driven delivery strategies.
Volume sensors and Cool Running Software together create a powerful tool for optimizing delivery routes and improving operational efficiency in the ice industry. By leveraging real-time data from volume sensors, ice companies can make informed, data-driven decisions that reduce unnecessary trips, maintain timely deliveries, and expand their delivery radius without compromising service quality.
Schedule a free, no-obligation demo call to see exactly how Cool Running Software can transform your ice business!
