With a route optimization software, you’ll spend much less time planning – and the routes produced will be far superior to manually created routes.
For a mobile workforce, route optimization is the process of determining the most efficient routes, in terms of cost, resources, and time. All other relevant factors such as order and driver restrictions, as well as the various workflows of a particular business, are also factored in.
The aim is to maximize efficiency and fulfill more orders: getting to more addresses with fewer resources. This allows businesses to save time, costs, and ultimately increase their revenue.
With route optimization software, your business will:
- increase earnings by 10-30% simply by allowing you to complete more orders
- improve employee productivity and customer satisfaction
- cut operating costs and overtime by 30%
Using a map, or any other manual means, to create optimized routes is incredibly difficult and time-consuming. As the number of drivers and orders increases, the complexity of the task of dividing up the work accurately and efficiently grows exponentially.
Route optimization software uses incredibly sophisticated algorithms to plan and optimize routes in a matter of minutes. This frees up to 57% of the time previously spent on planning – allowing staff to spend their time on other important tasks related to running and growing a business. This applies whether your business has 10 drivers, 150 drivers, or more. Even as your business grows, your route optimization software will produce the same fast, consistent, and accurate planning.
Route Optimization Software Sends Your Business in the Right Direction
- Increased Productivity, More Revenue
With route optimization software you’ll spend much less time planning – and the routes produced will be far superior to manually created routes.
What’s more, route optimization software ultimately gives your business the opportunity to increase revenue. When your existing workforce is able to get orders done in less time, you can easily take on more business without needing to increase staff or work hours.
- Controlled Expenses and Informed Decision Making
Businesses with route optimization software as an integral part of their operation can cut fuel and other driving expenses by 20%. Their overall distance traveled and time spent on the road is minimized, thanks to more efficient scheduling.
With route optimization software you can do real-time monitoring of your team and review their performance history. Both allow you to identify patterns – putting you in a better position to address them. Detailed insights into your workforce let you make more informed decisions for your business.
Which Problems Does Route Optimization Software Address?
- Workload Restrictions and Distribution
A route optimization software allows you to manage different types of driver restrictions (allowed working hours, different skills needed for the order), and vehicles (load capacity, refrigeration).
And, you can use your route optimization software to minimize overtime and account for driver lunch breaks. The routes that are created will be fair, optimal, and will not create additional costs for the business.
Example: The orders for this period will be balanced by a route optimization software to ensure that all of the drivers work for the same amount of time.
- Dynamic Planning
Changes, especially last-minute ones, are inevitable for any business. Instant and automatic recalculation of routes to reflect real-world changes, such as late orders, cancellations, drivers calling in sick, or customers requesting alternative delivery addresses is an absolute lifesaver. With a route optimization software, only a few clicks of the mouse are needed to produce the new routes that you’re after.
Example: It’s simple to edit the order date, re-optimize routes and send new schedules to drivers.
- Driver Communication
In order to actually be useful, a route optimization software needs to have its own mobile device application. Rather than being printed on paper, having orders on one convenient mobile application lets your drivers receive schedule updates. This exchange of information should be quick to allow for constant and seamless route and schedule changes.
With mobile applications, drivers can also update the completion status of each order. For dispatchers, there are a number of useful features enabled thanks to this information from the field, such as driver tracking capabilities and planned vs. actual route displays. Also, features like order tracking, real-time ETA and customer notifications help you give your customers excellent service.
- Deliver, or Pick up and Drop off – in Any Combination
Whether your business makes multi-stop deliveries from a central depot, or does pickups and dropoffs of goods or passengers, or a mix of these – route optimization software can handle it all.
You’re able to select the task type for each order, letting the software come up with the optimal way for your business to perform all of these tasks. You’ll maximize efficiency, make the most of your vehicle capacity, and cut down on driving time – perfect!
Example: Orders can be pre-identified as a regular delivery (from a central depot), or as a pickup that needs to be dropped off at another address.
- Prepare Schedules in Advance
Businesses might sometimes need to plan their schedules a few weeks in advance, to ensure resource availability or just to provide drivers with their long-term schedules. With route optimization software you can plan up to 5 weeks in advance, while still allowing planners to
specify details like days of the week, date ranges and time windows for orders.
Example: These orders have been uploaded and the route has been optimized, so the following week the schedule and driver will be ready to go.
- Performance Analytics
Good decision making should be data-driven: why rely on assumptions or on your intuition, when a route optimization software also lets you analyze many aspects of your performance. Identify positive trends or problems to be addressed with a number of tools that give you detailed insights into your team’s performance.
With your route optimization software you can compare completed routes to those that were planned, and compare actual stop duration to the duration that was planned. Also, see your order status history, arrival accuracy, time worked, distance traveled, and more – all letting you make more informed decisions about your business.
This article was originally published at OptimoRoute.com
Also be sure to look into how Telematics based insurance can not only improve your fleet safety but also decrease your commercial auto fleet insurance. If your current carrier doesn’t offer a telematics based fleet management program, contact me for more information.
