EXECUTIVE INSIGHTS
Fuel prices have become one of the most critical pressure points for companies in Australia and New Zealand – and not just those in the transport sector. In the wake of the ongoing global conflict, it has sent a loud and clear signal that fuel pricing affects almost every part of the supply chain from manufacturer to consumer, and it could have an effect for weeks or years to come.
It’s in these crises that a company’s most complex challenges and choke points (or their strengths and well-thought-out preparation) are truly exposed. Inefficiencies, dysfunctional supply chains, a fragmented workforce, and margin bottlenecks become more apparent than ever before. The bigger picture across your business is revealed.
The question is, could your company be better prepared for these crises?
With better decision support systems and optimised operations in place, most companies could be. If this isn’t you, the best time to start is now.
Our NZ fuel price dataset is increasingly being used to understand where cost pressure is building and how that flows through to margin. But fuel data is just one piece of a much larger puzzle. Executives who prioritise optimised systems and operations - not just one toolkit - across the entire business greatly reduce their risk. They meet volatility with predictability. Costs reduce, margin is protected, their people are looked after, and the company reputation stands strong.
You don’t need a vehicle fleet for fuel price pressures to affect your business. Let’s dig deeper into how your company can go beyond fuel price data and use proven frameworks to optimise your entire business - from operations, pricing and to fleet. This is about being prepared for volatility and giving you confidence no matter which way the economic winds blow.
Optimise your operations and systems
The best way to be prepared for any sort of volatility is to have predictability and the ability to adapt to changing forecasts. However, this must be baked into your operations and bigger decision support systems. Whether it’s in your network capacity planning, demand and volume forecasting, risk management or supply chain efficiencies, each area needs access to the right information at the right time, with systems all speaking to one another. Static approaches slow down your business, making you susceptible to risk and cost recovery can slip through the cracks.
Let’s look at how this may apply to specific sectors:
Logistics companies can use fuel data to support decisions about depot locations, hub and spoke vs direct delivery models. It can also help with capacity planning (such as fleet utilisation, subcontracting, and delivery frequency) and risk planning to help prepare for price shocks or supply disruptions
Airlines can use data for route planning and understanding which routes are viable, reduced, or suspended, schedule optimisation, and aircraft fleet strategy -informing short and long-term decisions about aircraft type, efficiency, and retirement schedules
Optimise your pricing strategy
You know the drill: when fuel costs rise, typically so do the cost of goods. But implementing a blanket price increase across all your products or services may not be the most strategic move. This can erode customer trust, damage reputation, and negatively affect your profit margins even further. Integrating fuel price data into your company’s pricing models can help you make proactive, data-driven pricing decisions that optimises and protects - and even grows - your margin during times of volatility and stability.
Optimise your fleet
In Australia and New Zealand, with our strong dependence on transport networks to keep our economy moving, there’s a real advantage in knowing how your fleet should respond in times of fuel price increases. Data and analytics can help companies that have fleets with:
Risk management and modelling different scenarios
Scheduling more efficient routes
Smarter fuel purchasing decisions
Performance monitoring
Asset and vehicle strategy decisions
Sustainability and emissions reporting
From there, confident decisions can be made to ensure you can continue operating efficiently and protect margin.
Fuel pricing is just the beginning. For leaders looking to ride out the economic storm with confidence, going beyond the fuel data and baking responsive systems into their entire business operations is critical. This means your business can prepare, adapt and pivot in real-time. You can make proactive decisions that protect your margins, reputation, customer loyalty, and your workforce.
We’ve helped Australian and New Zealand companies navigate economic turbulence for over 30 years - from the 2008 global financial crisis to the pandemic. The companies that weather the storm the strongest have optimised their systems and can adapt swiftly to changing conditions. It’s a true test of leadership, and we’re here to be your sounding board and trusted partner. Let’s get you prepared. Talk to one of our consultants about what this might look like for you.
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