Spend A Little, Make A Lot

Do you know that fuel pilferage alone can lead to a loss of INR 2.25 lakh per year per truck? Do you know that poor driver behaviour can lead to a loss of INR 30 lakh per year per truck? The surprising part is yet to come, all of this data is readily available and just requires simple maths. The surprising part is that even after having all of these figures with us, these pilferages continue to happen. That even after knowing all this, transportation in India still costs 4–5 times more than that of developed countries.

While each one of you may have their own reasons to believe why this is the status-quo, we know that the lack of synergy between technology and transportation is one of the major reasons. While these two terms do have something similar on the paper, in reality, they are far apart from each other. Since time immemorial, transport industry has been one of the last industries to adopt the technology, especially in India and we are still paying the price of it.

Logistics cost breakdown

With the advancement of technology, it is no longer a far-fetched proposition that vehicles can be tracked. A lot of path-breaking startups such as Uber and Swiggy are taking full advantage of this technology. But even after all of this, the transportation industry has not been able to adopt technology and unleash its true potential. One of the major reasons for this is apparently the high initial investment. While it may seem so, let us just try and look at it from a different perspective.

Investments should always be looked in the light of the returns that they can guarantee. While it is impossible to put a figure on the multiple benefits a simple feature like real-time tracking can provide, let us try our best to become more quantitative wherever we can, let us talk about fuel.

According to the industry average, 15–20 litres of fuel is stolen per day on long-haul trucks. Even if we consider the figure to be 10 litres per day and put the math in place, INR 15K is lost on a per month basis per truck. A typical fuel monitoring solution in the market would cost somewhere between INR 25K-30K (inclusive of everything). So it is easily understandable that the investment can be recovered in a period of maximum two months. Isn’t this great? Post that period, every drop of fuel saved is directly the saving. In a year, you would approximately be able to save INR 1.5 lakh per truck, just by plugging fuel pilferage.

All of you need to understand this and understand this quickly, it is the recurring expenses/losses that hurt and if these can be stopped by any reasonable one-time expense, not even a second thought should be spared.

We have just shown one simple example. We are sure the more you delve into this, the more you would realize that

“Spend a little once, make a lot always”


Originally published at iotrl.io on October 16, 2017.