2 November 2010
Marginal costing insights in latest Optrak routing system
New features have been introduced in the latest version of the Optrak routing and scheduling system to help users to plan routes that take into account the balance between meeting customer service commitments and managing customer and account profitability.
The company says the value of each order can be compared with the marginal cost of delivery, making it easier to identify orders that are either not profitable or marginally profitable. It is then easy to allocate these to be sent more cost effectively by a third-party carrier.
As an example, Optrak cites the waste industry, pointing out that it faces many challenges such as planning multiple waste streams and dealing with compartmented tankers, high densities of visit locations and varied tipping rules. The latest version of the company’s software allows users to analyse the value of picking up a bin in relation to the profit for that customer.
According to managing director Tim Pigden: "More effective management decisions can be made with a view to reducing costs and increasing overall profitability."