Hala Supply Chain Services (HSCS), a leading Saudi Arabian supply chain and logistics company, has introduced a new route optimisation service in the Kingdom.
The service connects a digital roadmap system to the route optimisation software and its implementation is projected to increase the number of deliveries per van, per day by up to 20 per cent.
"Studies have indicated that the fast-growing Saudi Arabian economy is characterised by relatively low service levels. A reliable and cost efficient outbound distribution system is critical for better turn over and improved competitiveness," said HSCS's Technology Manager Stephen Hayward.
"Improved sales levels at lower costs are a potent formula for profitability and market share growth. HSCS's route optimisation facilitates this process by increasing the number of deliveries made per vehicle per day."
Route optimisation is done through the use of multi-level GPS-based maps of Saudi Arabian cities, resulting into significant reductions in fuel, capital and vehicle maintenance as fewer trucks are required, Hayward said.
Employee overtime costs are also reduced, while vehicle tracking helps control sales as well as improve delivery integrity
HSCS's digital maps for all main Middle East cities include road type, direction, distance, speed and street address. This enables HSCS to build an optimised road network, and then plot the customer base accordingly.
Once the system is in operation, the benefits are measured and continuous studies are conducted on how to bring costs down further and enhance service levels.
"As the only supplier of this advanced route optimisation software, HSCS is in a position to offer all the needed functionality to do a proper balanced journey plan within the Middle East," Hayward said.
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