DHARA LOGISTICS INCREASES PROFITABILITY BY 12% PER MONTH WITH OMNICOMM FUEL MANAGEMENT SOLUTIONS
Dhara Logistics is one of the leading logistics and supply chain companies in India, providing logistics services to a large number of exporters and importers across the country. With a fleet of 60 vehicles carrying cargo all over the country, Dhara did not have an efficient system to monitor and manage the diesel consumption by these vehicles which, in turn, was increasing their fuel expenses. This also led to an increase in operating costs and a decrease in profitability.
To tackle the problems arising from the lack of an efficient monitoring system, Dhara decided to seek the help of Omnicomm and make use of the different services offered to help them find the right solution. After installing the Omnicomm fuel sensors, the fuel consumption reduced drastically and Dhara was able to monitor the vehicles as well as track them in real-time.
With mounting fuel costs and operational costs, Dhara needed to upgrade their manual fuel monitoring system that depended on the drivers for data, which was often inconsistent and led to a lot of pilferage and loss to the business.
Further, the claims of drivers couldn't be proven without an automated fuel monitoring system and this created discrepancies with vehicle mileage. Dhara was concerned that the mileage of the vehicle was not up to the standard given by the OEM that raised doubts about the functioning of the vehicle and this further led to higher operational expenses. According to them, only in the scenario of a technical issue with the vehicle such as failure of the clutch, issues with the engine, etc., the mileage should drop from the standard claimed by the OEM. For a company spending 2,500,000 INR per month on fuel, misinformation was leading to increased fuel expenditure and inefficient use of resources.
In addition to this, the company was also facing problems with tracking vehicular movements across the freight routes, where they could not monitor delays in reaching the destination or other difficulties encountered en-route due to the lack of real-time location data. This led to many inefficiencies in the system.
To solve these problems, Dhara needed a robust and transparent fuel and vehicle monitoring system that did not depend on the drivers and could be completely automated.
Dhara logistics decided to install OMNICOMM LLS-4 fuel sensors on 3 trucks for a pilot run before the complete launch in Feb 2019. Along with the fuel sensors, GPS trackers were also installed for efficient monitoring of fuel and vehicle location.
Once the test run was successful, Dhara had a fleet of 60 vehicles fit with sensors and trackers. After the installation of the sensors, the drivers were informed, through one on one discussions with the supervisors, that the company is monitoring fuel consumption for their vehicles. This further resulted in the reduction of incorrect fuel data provided.
Now, the company can effortlessly monitor the fuel consumption and also cross verify the filling data from the drivers.
Dhara Logistics reported drastic changes in their fuel expenditure after OMNICOMM fuel level sensors.
- 12% of fuel was saved per trip.
- Saving on fuel costs up to 1,512,000 INR per month.
- Because of the huge savings in fuel costs, the profitability of the company has increased by 12%.
Due to the application of the solution, the company can now monitor the real-time data of fuel in the fuel tank as well as vehicle consumption. All vehicle events have become easier to monitor, for which they had to earlier depend only on the driver's word of mouth with no proper evidence.
OMNICOMM solutions have helped Dhara logistics get a better handle of their business with automated systems that are more transparent and help in better monitoring. OMNICOMM along with its partners has been successful in solving a major problem that was crippling Dhara’s business, thereby improving productivity, cutting costs, and increasing their profitability.
“We are extremely happy with the excellent performance of the Omnicomm solution. The sensors are robust and highly accurate which helps us track the consumption of fuel better with real-time fuel data” - R Suresh, GM, Dhara Logistics