How to organize logistics delivery routes and reduce costs

Do you want to improve your delivery times and reduce inefficiencies? Organizing your fleet's routes manually can limit the growth and profitability of your operation. Through the use of specialized logistics technology, it is possible to structure these processes in an agile way, increasing visibility, control, and the level of service in each dispatch.

What is a distribution route and why is it key to optimize it?

A distribution route is the planned itinerary for a vehicle to deliver products to multiple destinations efficiently, and it represents the pillar of any transportation operation. An optimal route goes beyond the shortest path on a map; it constitutes a logical sequence that considers traffic congestion, customer characteristics, and resource availability.

In a competitive scenario, having a Transportation Management System (TMS) that centralizes logistics planning and execution makes a difference. Technology replaces intuition with data, integrating real-time fleet visibility to proactively respond to day-to-day challenges.

Challenges of manual route optimization

Many companies start their operations depending on spreadsheets and the empirical knowledge of drivers. However, as orders increase, there are clear signs that a company needs a TMS system to prevent manual scheduling from presenting critical challenges:

• High manual dependence: Calculating and assigning routes consumes hours of daily administrative work.
• Lack of visibility: Inability to know with certainty what happens to the cargo once the vehicle leaves the distribution center.
• Inability to scale: Difficulty incorporating new customers or assimilating demand peaks without expensively oversizing the fleet.
• Failures in the delivery promise: Higher risk of non-compliance due to the inability to anticipate operational delays or unforeseen events in the field.
  

How to optimize delivery routes in last-mile logistics

The last mile, which corresponds to the final delivery leg from the distribution center to the customer's home, is the most complex and expensive stage of the distribution process. By implementing a route optimizer, logistics operators can achieve three key benefits:

Reduction of fuel consumption

Automated planning designs routes that avoid empty miles, unnecessary stops, and backtracking. By maximizing delivery density per zone and assigning the correct vehicle according to its load capacity, engine running time is significantly decreased. This translates to lower fuel expenses and a much more sustainable logistics operation.

Strict compliance with delivery times

To maintain a high level of service, the software balances the number of stops so that the driver’s workload is efficient and achievable. Achieving optimized route management to trace the exact sequence is the main factor in fulfilling the delivery promise, strengthening end-customer loyalty, and drastically reducing support queries or “Where is my order” (WISMO) calls regarding the status of packages.

Efficient management of time windows

One of the biggest operational challenges is synchronizing the driver's arrival with the customer's availability. Time windows, meaning the specific time intervals agreed upon to deliver or receive an order, are strict. The planner calculates the estimated service time at the delivery point and travel times to sequence visits without violating these slots, reducing failed deliveries and costly second visits.

Steps to plan efficient delivery routes

If you want to integrate technology into your distribution process, especially when it comes time to schedule massive deliveries, consider these fundamental steps:

1. Centralize your shipping data: Integrate your order information directly from an ERP, WMS, or e-commerce system into your routing platform to avoid typing errors.

2. Assign real parameters: Define the volumetric and weight capacities of your fleet, as well as driver shifts and vehicle types.

3. Optimize and execute: Generate the routes and transmit them to the driver’s mobile application, ensuring they have updated instructions.

4. Record the delivery: Use electronic proof of delivery (ePOD) via signatures or georeferenced photographs to document the success of the service in real-time.

5. Analyze performance: Use a Control Tower to monitor indicators and compare planning with actual execution for continuous improvement.

Manual Planning vs. TMS Software

The difference between manual planning and automating with technology translates directly into working hours, fleet utilization, and service levels. Below, see what changes when implementing TMS software.

Automate and take control of your distribution

Overcoming logistics challenges requires leaving manual practices and disconnected tools behind. With Descartes + Drivin, you have access to a robust platform capable of automating your routes, providing traceability in the field, and helping your dispatches increase their on-time delivery rate.