How to combat transport downtime in logistics
The car is stationary, the engine is silent, and no one is going anywhere. It seems that a couple of minutes of downtime doesn't change anything — but that's when you're slowly losing money. If you ignore small losses, they quickly turn into systemic ones that will be clearly visible in the long term.
This publication by Sargona Private Capital Ltd will help you see where you are already losing profits and what you need to do to stop the leaks.
This publication by Sargona Private Capital Ltd will help you see where you are already losing profits and what you need to do to stop the leaks.
How much does each minute of downtime cost?
The problem is that most people only consider the direct figures, according to Sargona experts. But the real cost of a minute of downtime is not just the driver's salary or the cost of renting the vehicle for that period of time. It also includes the lost opportunity to make an additional trip, the disrupted schedule of the next vehicle, and a dissatisfied customer who has to make changes to their processes. When you add it all up, you suddenly realise that a minute can cost much more than it seems.
How to record downtime correctly
The main rule is to stop believing in the words ‘approximately so much’. Downtime must be recorded accurately: arrival time, loading start time, departure time. Every minute is data. If you don't have it, you're driving blind. As soon as you have reliable statistics, you can see which stage is causing you problems. And then you can stop guessing and start making decisions.
Delays arise where there is no system in place – poor coordination of loading, slow dispatch decisions, unpredictable routes, empty spaces in warehouses. Sometimes the reasons are not obvious at all. For example, when a trivial detail such as a smoking area located far away or a coffee machine in the wrong place adds twenty seconds of waiting time to each trip every day while the driver walks to the vehicle. This imperceptibly turns into significant time losses in the long run. Then they result in tangible losses.
Where downtime and delays come from
Start with communication, advise managers at Sargona Private Capital company. Give the driver clear instructions, ensure that the warehouse knows the exact time of arrival, and agree on the process in advance. Update schedules, clarify details, and eliminate unnecessary approvals. And start gathering information to better understand where exactly you need to apply pressure. Sometimes reducing downtime is not about robotisation or huge investments, but simple discipline.
The most profitable investments are those that reduce uncertainty. These include GPS-based transport tracking (e.g. Wialon), automated route planning using TMS systems for transport management (e.g. Routimo), and vehicle turnover analytics. The latter is based on BI reports using data from TMS or telematics and helps identify problems and make more accurate decisions. These options don't just save time - they give you control. And control in logistics is the most important thing. What you invest in reducing downtime will pay off many times over: in speed, accuracy and new customers who value stability.
Downtime is like a small hole in your pocket: it doesn't seem like a big deal, but then suddenly half your profits disappear. It's better to sew it up now than to look for money scattered along the road.
Downtime is like a small hole in your pocket: it doesn't seem like a big deal, but then suddenly half your profits disappear. It's better to sew it up now than to look for money scattered along the road.
What can be done immediately to reduce downtime at no cost
What investments will help reduce downtime
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