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TDG believes fleet management software is playing a key role in helping it save £250,000 a year running the transport operation for Pilkington Building Products Europe.

The logistics firm says the four-year contract, which began in 2008 and is worth £6m per year, will cut 25% off the glass manufacturer's transportation costs by 2012.

Nick Mancz, TDG general manager for  Pilkington, claims the introduction of new fleet management software from Paragon is playing a key part in delivering the savings.

He adds: "The system optimises our routes, loads and vehicle selection based on access constraints, allowing us to make informed choice as to whether or not we use a rigid, articulated truck or van to make the delivery."

Simon Clarke, project manager at Pilkington, says the fact TDG manages his firm's transport operation centrally is an important advantage in cutting costs.

He adds: "Previously, individual sites were largely unaware of each other's movements when they were organising their own deliveries and consequently there were a lot of duplicated routes and unused capacity. There are significant savings to be made by coordinating the sites.

"Already, TDG have calculated they will use up to 20% fewer vehicles."