The recent diesel fuel price hike has considerably increased the operational and other costs incurred by the freight logistics firms. A hike of 3 rupee per litre on diesel fuel will increase the operating expenses considerably as most of the full load trucks have a fuel economy of 4 to 7 kilometres per litre.
A 30 MT truck that has a fuel efficiency of 5 kilometres per litre will now have an additional expense of .60 rupee per kilometre with the new diesel price. Consider a truck that covers 500 kilometres a day. The fuel price hike will bring in an additional cost of Rs. 300 per day. If there are 50 such trucks for the firm, the total additional cost per day shoots up to Rs. 15,000. This in turn produces as monthly value of Rs 450,000/-. Thereby the approximate annual operating cost goes up by Rs. 54,00,000/-. The hike will also affect the companies those hire trucks from outside. The rate for hiring the trucks will be increased by the truck owners and this will again cause a burden to the transport firms.
From the past trends, it is evident that the price of the diesel fuel will keep on rising and in near future we can expect the diesel price touching the 65 rupee per litre mark and the petrol price reaching Rs 100 per litre. With the series of hikes happening and the huge amount of additional cost incurring, the best way to improve your profits is by simplifying back office operations, reducing the cost of serving customer etc, and here, SA-FMS ERP advantage pays off with its cost saving benefits for freight and logistics industry.
Some features of SA-FMS include:
- Incorporates best practices in Freight Logistics industries
- Excellent controls for accounting and inventory to avoid pilferage
- On time and within budget implementation practices
- ERP with guaranteed return on investment (ROI) through operational efficiencies
- Time tested ERP solution for large and small freight logistics companies
INR 100 = USD 2.2






