Route optimization is a process of determining the most efficient route from point A to Z. This optimization tool takes fuel, load, and time into consideration to provide the most direct route for your delivery drivers to use. Your company will be on the cutting edge of efficiency and customer service when utilizing route optimization.
When determining the best routes, several factors include the number of stops in between destinations, the different locations, and the time window between deliveries. These are just a few of the factors taken into consideration. If you’re not convinced a transportation management system with included route optimization is the best choice, continue reading for more information.
Importance of Route Optimization
Many benefits come with leveraging route optimization. Some of them include;
- Avoiding Unnecessary Miles
Analyzing all the best routes for your shipments and taking the shortest ones to help avoid unnecessary miles. This information will help you decrease costs and delivery periods.
- Cut Down Costs and Increase Savings
Identifying the most cost-effective routes will help you cut down on shipment costs and increase the profitability of your business. This includes reducing fuel, maintenance, and even the number of drivers on staff.
- Improved Safety
Decreased time on the road may lead to increased safety. Analyzing different potential routes allows you to choose the shortest one if it’s the most effective. Some safety challenges your drivers may encounter on the route include:
- Tricky turns
- Inclement weather
- Traffic
- Improved Customer Service
Strategic route optimization allows you to take the shortest possible route, helping you to avoid delays. A more efficient delivery provides better customer service.
- Increased Productivity
Common sense provides that the longer you take to deliver one shipment, the more time it will take to deliver more shipments. Having to backtrack due to traffic, construction, or poor optimization can cripple your company. Route planning addresses this problem by using GPS and real-time tracking.
- Decreased Fuel Costs
It makes sense. If you are on the road less, you will decrease fuel costs thanks to better routing. You will also decrease wear and tear on your vehicles while increasing employee satisfaction. Their day is more productive and less frustrating.
- Improved Driver Scheduling
Speaking of your drivers. Route optimization ensures you have the correct number of drivers for your deliveries. This will save you money in the long run. It will also keep your drivers motivated since they know you are considering them.
Conclusion
Remember, the goal of route optimization software is to ensure you take the best route for your shipment. To determine the best route, it’s important to properly use the information you get from your route optimization software and analyze every detail to determine the best route. This includes traffic, weather, time of delivery, type of shipment, and more. It may take some time to set up the software and learn how to use it effectively. Rest assured, the time you gain once route optimization is in place will provide you with rewards time and time again.