Modern companies cannot focus only on their own profits. In order to run a truly profitable and respected business, entrepreneurs are obliged to act for sustainable development. The idea that perfectly shows how transport and logistics companies should develop is the concept of the Triple Bottom Line. Learn what its assumptions are and what you can do to lead your business towards sustainable development.

Triple Bottom Line Concept – What is it?

The term "Triple Bottom Line" was coined in 1994 by John Elkington, an American, an authority on the subject of sustainable development of enterprises and the author and co-author of about 20 books on the subject. According to Elkington, today's enterprises, in order to develop, cannot take into account only financial results. He believes that financial benefits are only one of three equal branches of business that must be taken into account due to the progress of consumption of goods and strengthening globalization.

The three factors that make up the Triple Bottom Line are PEOPLE, PLANET and PROFIT, which are influenced by all companies, including, and especially, those in the transport and logistics industry.

What tool helps develop TSL companies in the Triple Bottom Line concept?

The real impact on following the path of sustainable development in the transport and logistics industry is the use of tools that improve the work of the entire team responsible for planning and implementing routes. Such tools include, among others, route optimization systems, the operation of which is based on artificial intelligence algorithms using real-time maps. In the text below, we will present how a route optimizer (or route planner) can bring companies from the TSL industry closer to sustainable development.

The PEOPLE Factor – Does a Route Planner Lead to Better Employment?

Yes! Using a route planner can improve the comfort of work in your organization. The main beneficiaries in this case will be route coordinators and drivers, but it can indirectly contribute to better working conditions for management staff.

Reduce the time needed to coordinate activities

The route optimizer can save up to 80% of the coordinator's work time. Such results can be achieved using Routimo software. How is this possible? The system has a lot of automation, thanks to which it performs tasks much faster than a human. Thanks to the route planner, the coordinator's work can become much simpler and more enjoyable. After implementing the optimizer, the level of workload decreases, and the coordinator has the opportunity to become an expert in the process instead of being a "firefighting person". 

Relieve drivers by giving them the right tool for the job

Drivers' work is not easy. They cover dozens or even hundreds of kilometers every day and are constantly pressed for time. And this is certainly how it looks in companies that do not plan their fleet activities properly. The route planner provides drivers with a structured and logical route plan and an equal division of tasks. Drivers are evenly loaded with work and the number of points to visit. Additionally, thanks to the possibility of navigation on the phone, they do not have to look for delivery addresses on their own, which makes their work more peaceful and much better organized. Meanwhile, organized processes mean no overtime and excessive employee fatigue.

Make it easier for managers

The route optimizer within the PEOPLE factor can also improve the comfort of the managerial staff. They are responsible for the results and creating accurate forecasts. Route optimizers generate automatic reports, which saves the time needed to perform the necessary analyses, relieving the manager.

In addition, well-organized work at lower levels allows you to create a more predictable business. At the same time, less burdened and more relaxed lower-level employees mean fewer problems for the manager to solve in the team and no unnecessary tensions. Proper work planning is the key to the sustainable development of companies in the transport and logistics industry.

The PLANET Factor – How can the route optimizer help us care for the environment?

According to the Triple Bottom Line, large organizations have a direct impact on the environment and our planet. This is especially true for the transportation and logistics industries, which can be extremely burdensome for the natural environment, and especially contribute to air pollution and smog. In this case, using the right tools for better transportation management is key. 

Effectively reduce carbon footprint 

Road traffic is variable both in space and time. Therefore, simply shortening the routes of the fleet is not enough. The route may be shortened by a few kilometres, but spending long periods in traffic jams during rush hour will still increase the carbon footprint. Therefore, routes must be optimised in terms of their length, the time needed to complete the journey and the time of day. The route optimiser allows you to take all these factors into account in real time and design truly cost-effective routes – both financially and environmentally.

However, another function of the route optimizer is also of great importance for the PLANET aspect. Answer the question whether you will choose a car or a truck when going shopping to the supermarket. The answer is simple, and the example is exaggerated, but it clearly illustrates what happens in many companies in the transport and logistics industry. There is no sustainable development when the wrong vehicles are used for the tasks. Some cars are overloaded, while others make almost empty trips. The route optimizer solves this problem - it helps in planning the distribution of loads in terms of their size and weight and allows the selection of the type of vehicle for the task being performed.

PROFIT Factor - How a Route Planner Helps Increase Your Company's Profits

The PROFIT factor is the last, but easiest to describe factor in the transport and logistics industry. Route optimization systems are designed to save money and help generate additional profit. 

In the case of Routimo, there are three main aspects that influence financial matters:

Reduce fleet maintenance costs by up to 30%

Routimo route optimizer allows you to reduce the total fleet maintenance costs by up to 30%. This is due to, among others, lower fuel consumption, reduced number of necessary vehicle repairs, optimization of salaries (no overtime, no need to hire additional staff) or the possibility of reducing the number of leased vehicles.

Plan faster

Shorter and faster routes and better planning of the day for the entire crew results in more time. Routimo is able to reduce planning time by up to 80%. 

The route planner allows you to implement the Triple Bottom Line idea

Undoubtedly, implementing the idea of ​​sustainable development in the transport and logistics industry can bring numerous benefits. We have written about many of them in the text above. However, these are not all the advantages of following the Triple Bottom Line concept. Therefore, at the end, we present in several points the benefits of sustainable development of the company in terms of people, the environment and profit using the route optimizer:

✓ A healthier work environment and better employee relations;

✓ Better strategic planning based on data, not estimates;

✓Reducing negative impact on the natural environment and carbon footprint;

✓ Lower consumption of resources including fuel, tires and car parts;

✓ Creating new areas of profit generation;

✓ Better branding – greater trust and loyalty of customers and contractors.

 

Are you interested in implementing a route optimizer in your company? Contact our Sales Department.