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Routing optimisation · pricing and return

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Routing optimisation · pricing and return

Routing optimisation: pricing and return

Overview

This model sets out the cost of the programme, the savings it delivers and when they begin, and the return to the operator. Costs are organized by step, with each step showing its Datacom and Second Order AI fees separately. Each step carries a Y1 setup fee (one-time), a yearly fixed fee, and a monthly per-vehicle recurring fee. The per-vehicle monthly fees are additive across steps. The controls let you test each option and fee; the target is a return above ten times. Figures are in New Zealand dollars unless marked United States dollars.

Three controls set the scenario. Data preparation, assisted or internal. On the assisted path Second Order AI assists the client with preparing and calibrating the data, and savings begin in about three months for a fee. On the internal path the operator's own team does the work, which takes about six months and carries no fee but more of their time. Scope, Step 2 and Step 3. Step 1, the foundation and live planning, is always included. Step 2 adds week and month-ahead route reductions and depends on Step 1. Step 3 adds the strategic fleet reduction that releases capital and depends on Step 2. Basis, gross or net. Gross shows the savings excluding the operator's internal project costs. Net includes those internal project costs, so the return reflects the full investment.

Working model v35
How the model works · start here

At each stage the client makes a choice. Each node says what it involves; each branch shows what it costs or saves.

1 · How is the data prepared?AssistedInternalAssistedSecond Order AI assists the client withpreparing and calibrating the data.Savings start in about 3 months.Cost: a one-time setup fee.InternalYour own team prepares the data.Savings start in about 6 months.Cost: no fee, but your team's time.Step 1 · Live planning (always included)Plan routes automatically, day to day and inreal time. Saves about 7% of fuel, charges andmaintenance, and cuts planning time.2 · Reduce the number of routes?via automated week and month-ahead planningYesNoRoute reductionRemove about 5% of routes.Cost: a yearly route review fee.Saves the running cost of those routes.SkipLive planning continues unchanged.No extra fee.3 · Reduce the fleet size?via fleet optimisation (requires Step 2)YesNoFleet reductionRemove about 7% of trucks and free theircapital. Cost: a study fee plus asuccess fee on the savings delivered.SkipKeep the current fleet.No study or success fee.Outcome · operator returnsavings from the chosen steps, less the fees above