How distribution optimization saves Quaker State time and costs

At the beginning of 2020, with the outbreak of the Covid-19 pandemic, Quaker State found themselves in a difficult situation where they did not have enough staff to plan and execute delivery routes. At that moment, they realized it was essential to standardize their delivery procedures to reduce operational risk. Route planning is a complex process, but they needed it to be accessible to any employee and to allow for operational consistency, so they wouldn’t rely on a single key person.

Faced with this challenging situation, they sought a solution, and Routal met all the company’s needs. Thanks to the intelligent route planner, Planner, they were able to unify several processes into one. Additionally, it was crucial that this process could be executed and accessible to any employee, regardless of their training level or experience within the company.

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The implementation of Routal at Quaker State has led to significant savings in fuel, reduced overtime hours for staff, and the standardization of all logistical processes. Additionally, the integration of the Routal platform with SAP has ensured compliance with national digital waybill regulations, allowing for the automated specification of kilometers traveled for each delivery, among other benefits such as quick warehouse sorting and other operational advantages.

Quaker State faced a significant challenge: improving the monitoring of their operations and enhancing the company’s resilience against the loss of key personnel. The Covid-19 pandemic stressed the entire organization, accelerating their internal process improvements and operational risk reduction. Another objective, driven by state regulations, was the digitalization of the waybill. The waybill is a legal document that proves the existence of a transport contract and is mandatory for the transportation of goods in Mexico. Until then, complying with this law was technically complex and costly. Thanks to Routal, Quaker State can now automatically complete all required waybill data daily through the integration between Routal and SAP.

Faced with the challenge of optimizing logistical costs, Quaker State was incurring significant expenses on fuel, vehicles, and personnel. The need for an effective solution was imperative. Routal stepped in with a meticulous analysis of Quaker State’s logistical operations, evaluating how to maximize return on investment (ROI). The study revealed that by integrating Routal’s solutions, Quaker State could not only optimize their processes but also achieve an estimated annual ROI of between $1 million and $2.8 million. This strategic transformation promises not only financial improvement but also significant advancements in operational efficiency and environmental sustainability.