Efficient Dispatch Routes: Aceros Otero's Key to Cost Reduction

The experience of Aceros Otero once again demonstrated the excellent dispatch route planning service, which not only improved delivery times but also helped reduce transportation costs.

About Aceros Otero

As part of the Otero Companies group, Aceros Otero is one of the main suppliers of special steels for the industrial sectors of metalworking, mining, forestry, fishing, aquaculture, and construction in the country.

With over 30 years of experience providing services to major companies in the industrial sector, Aceros Otero operates through branches in Santiago, Antofagasta, Viña del Mar, Concepción, and Puerto Montt, serving the increasingly specific needs of its clients.

The Challenge: Optimizing Routes and Delivery Times

At Aceros Otero, they used to rely on a single person to plan their dispatch routes. However, during holiday periods or absences, this centralized process became problematic, affecting their quality of service.

Aside from that, it was also necessary for them to improve their service by optimizing the number of dispatches, as they were disorganized based on the type of transportation and the characteristics of the products to be distributed. The main challenge was to increase the number of dispatches in less time, which would lead to a decrease in transportation costs.

To improve their dispatches, Aceros Otero started using the Drivin application to plan their routes based on certain criteria provided by the company; deciding to give the system freedom to create the routes according to their defined parameters.

Working with Drivin

To stick to their KPI, they defined order parameters. For example, in the case of steel bars, they needed to determine which truck should be used for delivery based on their length. 

Initially, this wasn't as easy as it seemed, and one of the first steps they had to take during the implementation was to define the characteristics of the orders based on the length of the bars. Once they had that figured out, they automated those details by using an Excel formula, considering the measurements of the bar and the size of the transport.

Another aspect that required attention during the implementation stage was adapting the drivers to the change, as resistance is common during any process of this kind.

They worked on this by providing training and through Drivin's ability to address specific doubts, aiming to deliver a service that met their expectations. Additionally, Aceros Otero had to parameterize customer addresses in their ERP system and upload the information to Drivin, which was resolved through meetings and collaborative work.

Transportation costs reduction

After approximately two months of work, routes were fully optimized. The trucks delivering for Aceros Otero increased their number of customers per trip from 5-6 to 12-15, resulting in a 20% decrease in transportation costs.

Along with the above, the dispatch service level by 9 points, with no longer a dependency on a single person for route planning, as there is a group of planners.

"Our experience has been very positive. Drivin has been a great contribution, and I highly recommend it," says Roberto Pérez, Corporate Operations Manager at Aceros Otero.

If you'd like to find out how much time, money and resources you can save by implementing a TMS like Drivin, feel free to leave your contact details in the form below, and one of our customer representatives will be in touch.