Route Optimization Strategies Part 2

Were you aware that having a strategy to optimize routes can save fuel, time, and money? 

In the world of online shopping and instant gratification, companies face increasingly greater challenges.

• How can we deliver products to consumers more quickly?
• How do we keep up with the constantly changing demands of suppliers?
• How do we reduce fuel costs, decrease liability, and avoid adverse traffic conditions?

Transportation route optimization strategies might be what you’re looking for.

Choosing the best route optimization strategy

Each fleet has its unique requirements, and the software and optimization techniques used for each one can vary significantly between them. To determine the needs of your company, take into consideration:

• The scale of operations
• Coverage area
• Delivery scheduling 
• Dispatching
• Type of business 

Once you have more clarity around your businesses needs, you’ll be able to make a more informed decision regarding which routing software would work best for you, as well as which strategies and techniques are a better fit for your needs.

Source: Envato

For example, you might decide that you only require a GPS integration, or you may require a complete route optimization software like Drivin, which incorporates various route management and planning systems.

Benefits of implementing a strategy to optimize routes

There are several advantages when it comes to implementing route optimization strategies, such as: 

Gives a competitive advantage

• Adapt and respond quickly to market and business last-minute changes,
• Efficiently handle seasonal demand peaks,
• Understand the potential impact of mergers and acquisitions regarding route efficiency and operational costs,
• Enhance customer service by quickly and strategically adapting to changing customer expectations.

Saves time

• Eliminates manual routing,
• Improves distribution processes to increase productivity,
• Optimizes internal resources,
• Improves driver performance,
• Keeps up with industry standards to increase productivity.

Controls transportation costs

• Diminishes delivery costs by continuously enhancing efficiency through comparative evaluation, optimization, and field data analysis,
• Minimizes the number of miles/kilometers driven to cut down on fuel costs,
• Reduces driving hours by analyzing the driver's actual performance,
• Minimizes the required number of delivery vehicles.

Improves customer service

• Enhances the delivery service by optimizing planned routes,
• Incorporates both your constraints, and customer specifications,
• Increases on-time deliveries while respecting customer delivery windows,
• Leverages real-time driver location visibility through GPS,
• Utilizes real-time field data to inform distribution strategies and route optimization opportunities.

Implementing a regular transportation and delivery route optimization strategy can be a highly valuable process that can reduce business costs, better serve customers, and help you thoroughly understand the implications of potential changes to the distribution network before they’re implemented.

How to implement route optimization strategies

In order to remain competitive in today's constantly changing market, implementing a route optimization strategy must be done regularly and as an integral part of the overall process of commercial strategy development.

Source: Envato

Establish your game plan

After defining how you’re going to serve your clients, build a strong distribution foundation by optimizing your territories and establishing efficient master-routes using automated routing tools and technologies to control service costs and elevate customer service levels.

Commit to regular delivery

Best practices dictate that companies should continually analyze and refine their route optimization strategies and distribution processes in order to improve operational performance and customer service. 

Have a distribution strategy

Strategic planning to optimize routes is more than just a management tool; it’s a strategic commercial tool that significantly improves both service and margins through data-driven decision-making that reduces transportation costs, increases operational efficiency, and improves delivery performance.

When was the last time your organization made a change or update to its transportation route optimization strategy? Do you believe your customers will continue to pay the price for outdated and inefficient routes?

Drivin is a cloud-based SaaS TMS that leverages the power of technology, such as artificial intelligence, machine learning and data-driven resources to offer a 360° solution that adapts to specific business requirements.

In order to remain competitive in the current market, it’s vital for every company out there to start automating and digitizing their operations. This can be the difference between standing out from within the crowd, compared to many others that have fallen short when it comes to meeting customer expectations. 

Many of those companies have not been able to keep up with how quick technology advancements are coming in (take for instance the boom in AI capabilities for all major industries). We're now facing a vital cornerstone that will eventually filter out many businesses unable to adapt.

If you feel as though your company is in need of a technological stack refresh, feel free to reach hit us up by filling in the details below!