Strategies to optimize transportation routes – Part 2

With the world seeing an increase in online shopping and instant gratification, businesses are facing increasing challenges and competition in order to stay relevant. 

How do you get products to consumers faster? How do you keep up with technological and digital trends? Are you looking at reducing fuel costs, decrease liability and avoid en-route problems? Having a strategy to optimize transportation routes might be the answer you’re looking for. 

Below, we’ll be going over strategies and benefits of optimizing your transportation routes, and how to adapt to the latest logistics trends. 

Choosing a strategy to optimize transportation routes 

It’s important to note that each fleet has its own requirements, therefore, the software and optimization techniques used for each scenario often differ. To determine your company's needs, keep in mind:

• Size of the operation 
• Coverage area and distribution routes
• Delivery planning (changing or consistent)
• Delivery & dispatch
• Type of business 

Once you’ve answered the above considerations, you’ll be able to better understand your businesses needs to help you decide what features you need from a route optimization software. 

For example, you might only need GPS tracking integrated with the route optimization software, or a fully-fledged solution to integrate the entirety of your company into one software solution. 

Benefits of implementing strategies for transportation route optimization 

There are multiple benefits when it comes to implementing route optimization software, those that mostly stand out are: 

Gives a competitive advantage

• Responds in a smart and timely manner to market or business challenges 
• Has the ability to adapt the strategy in an easy and efficient way to better manage seasonal peaks in demand
• Understanding of the potential impact software acquisition and implementation can have on a team, as well as the effect it can have on internal savings
• Improve customer service by adapting quickly and strategically to evolving customer and customer expectations.

Saves time

• Manual routing becomes a thing of the past
• Improves distribution processes to increase productivity.
• Optimizes internal resources.
• Benchmarks driver performance against industry standards to increase productivity.

Controls transportation costs 

• Reduces delivery costs by continuously improving efficiency through benchmarking, optimization and analysis of field data.
• Reduces fuel costs by minimizing the number of miles/kilometers driven
• Reduces driving hours by comparing performance data vs planned 
• Reduces the number of delivery vehicles required

Improves customer service

• Improves the delivery service with a strategy to optimize planned routes.
• Takes into account both your constraints and customer specifications, such as delivery times and windows
• Leverages real-time visibility of the driver location through GPS monitoring
• Leverages real-time data to plan distribution strategies and route optimization

Implementing strategies to optimize transportation and delivery routes on a regular basis can be a valuable process that may often reduce business costs, fine-tune the delivery process to better serve customers, and help you thoroughly understand the implications of potential changes to the distribution network before they’re implemented.

Source: Pexels

How do I implement a route optimization strategy? 

To remain competitive in today's ever-changing marketplace, route optimization strategies must be implemented on a regular basis and as an integral part of the overall business strategy development process.

Set up your game plan 

How to implement strategies to optimize transportation routes

After figuring out the type of customer service you want to offer your clients, it’s important to build a solid distribution base by optimizing your delivery area, and establishing efficient master routes using automated routing tools and technologies

Commitment to regular delivery

How to implement strategies to optimize transportation routes

Best practices dictate that companies continually analyze and refine their strategies to optimize routes and distribution processes to improve operational performance and customer service. A smart move is to leverage the master route to validate proposed updated based on changes in the business.

Distribution strategy and GPS use

How to implement strategies to optimize transportation routes

Strategic route optimization planning is more than a management tool, it’s a strategic business tool that significantly improves both service and margins through data-driven decision-making tools that reduce transportation costs, increases operational efficiency and improves delivery performance.

When was the last time your organization made a change or update in strategy to optimize transportation routes? Do you think your customers will continue to chose your service over one that offers free and seamless delivery services? 

To remain competitive in today's marketplace, route strategy planning must be implemented comprehensively. Need help getting started on this big change? Talk to us!