5 Reasons Why Your Business Needs Route Optimization

The writer of this article is a Marketing Executive at Locate2u

If you manage a delivery business and are stuck manually planning routes for your drivers then here’s 5 reasons why your business needs route optimization.

Time is of the essence so why spend hours planning when you can have the most efficient routes built in minutes?

This article won’t only focus on why you should invest in such software but also the types you should look out for. Last mile delivery is the trickiest part of the delivery process so it’s important to make life as simple as possible for yourself, your drivers and customers.

Route optimization is all about making the nature of delivery a seamless experience.

What is route planning?

Route planning is the calculation of the most effective process of deliveries through multiple stops.

Transport and logistics businesses often use delivery route planning software as a solution to automate the entire planning process, allowing fleet managers to save time and maximize their operations.

Having planned routes is a great way to maintain organization in the workplace and keep everything on track.

If you’re looking to purchase a route planner then it’s best to do your research and compare platforms so you’re aware of pricing and pros and cons. You should also check out reviews to see what users are saying.

What is route optimization?

Route optimization is a tool that takes into account a number of factors to create the most efficient route for your drivers. These factors include driver schedules, the order and number of stops, weather, traffic congestion, the type of vehicles and products being transported.

The types of route optimization

Static route optimization

Static route optimization

Static route optimization refers to routes being planned monthly or quarterly. This type of software is easier to customize on smaller networks with the ability to have control over route behavior.

Unfortunately, static route optimization doesn’t offer much flexibility and doesn’t take into consideration the many problems drivers experience throughout the day.

These problems include fleet managers being unable to respond efficiently to unexpected situations that can potentially impact a driver’s schedule.

Real-time dynamic route optimization

Real-time dynamic route optimization is the adaptation of routes throughout the delivery day based on new orders being popped into the system in real time.

Dynamic route optimization studies the entire fleet for route prospects and assists in preventing route issues from occurring throughout the day.

In contrast to static route optimization, this software is more expensive and needs extra resources.

What is the difference between dynamic and static route planning?

One of the main differences between dynamic and static routing is the type of data used to create routes.

Dynamic route planning uses real-time data whilst static uses fixed data.

Additionally, static route planning is used mostly by businesses on a limited budget with a formularized schedule, whereas dynamic considers weather and traffic conditions. Dynamic route planning can also be used for last minute route changes.

Why your business needs route optimization software

1. Reduced vehicle maintenance


Optimizing and reviewing delivery routes allows drivers to perform better on the road. As a result, you can reduce the need for vehicle maintenance and save your business potentially thousands.

Route optimization lets access driver behavior data so you can see who is speeding, excessively idling, harshly braking and so on. All these actions play a part in the wear and tear of company vehicles, potentially leading to expensive servicing and a reduced lifespan.

If drivers aren’t pushing fleet vehicles to the limit, you can spare the possibility of large transportation costs and lengthy downtime.

2. Reduced fuel costs


Given today’s climate, it’s important that business owners look for ways to reduce costs wherever possible. Route optimization software does exactly this by placing your drivers on the most cost-effective delivery routes.

Being on the most efficient routes means your drivers are spending less time on the road, ultimately cutting down unnecessary fuel consumption.

Not to mention taking a more efficient route means less idling in traffic, time wasted going in between stops and drivers taking the scenic route.

3. Increased visibility


With efficient route planning you can access live updates from your drivers so you can determine their whereabouts throughout the day. Such visibility between you and your drivers gives you peace of mind that everything is running smoothly.

If a driver is experiencing delays that will impact their arrival time, you can notify the customer so they are aware of any changes.

4. Faster deliveries


Placing drivers on the most efficient delivery routes enhances their ability to complete orders faster on a more regular basis. Drivers can also complete any last minute bookings without their schedule for the day being disrupted, boosting your business’ productivity.

Faster delivery is also an amazing way to meet customer expectations and improve customer retention so you can bring in more revenue for your business.

5. Improved customer experience


Businesses are always trying to find new ways to enhance their customer’s delivery experience. This can be achieved by optimizing your delivery routes, speeding up the overall delivery process and giving customers better service.

Depending on the type of route optimization solution, you can share the live location of your drivers with customers so they can see exactly where their order is.

Advanced route optimization software gives businesses the ability to prioritize customer needs and keep them a part of the delivery process. By keeping your customers happy you increase the possibility of repeat purchases and positive word-of-mouth promotion.

Conclusion

Manual route planning is a thing of the past. Route optimization tools are engineered to boost driver performance and enhance operational efficiency so users can focus on other areas of business.

Route optimization allows businesses to improve customer satisfaction, increase their visibility and communication and reduce maintenance and fuel costs. This solution is sure to transform your business and take it to the next level

This article was written by Chelsea Woods, Marketing Executive at Locate2u