Responding to The Fuel Crisis

Fuel costs are once again putting pressure on transport and delivery businesses, and the impact is being felt across the entire supply chain. Margins are tightening, planning is becoming more complex, and what worked six months ago is no longer enough.

For many of you, this probably feels all too familiar. You’ve had to navigate this kind of volatility before through the 2008 energy crisis, and more recently during the 2021–23 post-COVID surge, where fuel prices climbed by as much as 30–50%.

Each time, it forces tough decisions and puts pressure on every part of the supply chain.

At Radaro, we understand that your business doesn’t have the luxury of standing still. You’re being asked to do more with less, reduce costs, maintain service levels, and stay competitive in an environment that’s changing rapidly.

So what does this look like in practice? Below we discuss how businesses are responding, including Radaro customers, and what we can offer to help.

What businesses are doing right now to stay ahead

Across the market, we’re seeing operators take a mix of defensive and proactive actions to protect their margins:

• Passing on fuel costs through levies and pricing adjustments – Many large operators such as Woolworths and Australia Post are passing on a portion of the cost to consumers by increasing delivery charges or fuel surcharges to remain viable.

• Restructuring their entire cost base – Businesses are renegotiating contracts, increasing pricing review cycles, and looking for ways to share rising costs across the supply chain.

• Cutting or consolidating unprofitable routes – Some operators are actively reviewing route profitability and consolidating runs, or avoiding unprofitable runs to avoid running at a loss.

• Improving fleet utilisation – Many operators are looking to increase drop density, and maximise vehicle capacity. They are focusing on fewer, more efficient runs to reduce wasted space and ensure every trip delivers a stronger return on fuel spend.

How our customers are using Radaro to reduce fuel costs

We believe that the most effective way to manage rising fuel costs isn’t to reduce service, it’s to remove inefficiencies.

1. Optimised routing that reduces total kilometres travelled – Radaro dynamically plans the most efficient routes based on real-world constraints – cutting unnecessary distance, reducing drive time, and lowering overall fuel consumption.

2. Increased delivery density and smarter run planning – By intelligently grouping jobs and sequencing stops, Radaro helps you complete more deliveries per run

3. Load-aware planning that maximises vehicle capacity – Radaro ensures every vehicle is optimally loaded and intelligently sequenced, aligning how your trucks are packed with how routes are executed. This reduces wasted space, improves drop flow, and allows you to move more with fewer vehicles.

4. Real-time visibility to adapt on the go – Traffic delays, vehicle-restrictions, and last-minute changes can all lead to wasted fuel. Radaro allows you to adjust routes in real time, avoiding inefficiencies as they happen.

5. Reduced failed deliveries and repeat trips – With better customer communication and accurate ETAs, you minimise missed deliveries, removing the need for costly re-attempts.

6. Data-driven insights to continuously improve performance – Understand where fuel is being wasted across your operation, and identify opportunities to improve efficiency over time.

Our offer to our customers

While fuel prices and external pressures are outside of our control, how your operation responds is not. If rising fuel costs are placing strain on your business, it may be time to step back and identify where inefficiencies could be impacting performance.

At Radaro, we remain committed to supporting our customers through these challenges. To help, we are offering a complimentary route optimisation review for all customers.

If you reach out to our Customer Success team before June 30, we will work with you to:

• Review your current planning and delivery structure

• Identify opportunities to reduce mileage and improve efficiency

• Highlight areas where route planning and utilisation can be improved

• Quantify potential fuel and cost savings across your operation

This is not a sales initiative. It is a practical way to uncover opportunities and ensure you are getting the most value from your current setup.

If you would like to take advantage of this, please reach out to your dedicated Customer Success Manager or contact our team directly.