Speed Up, Spend Less: Route Optimization Strategies for Business Owners
Last-mile businesses that rely on timely customer deliveries know how important it is to optimize their delivery routes. If you make even one tiny mistake when planning routes, you’ll have missed deliveries, unhappy customers, and lost revenue. Last-mile delivery software takes all of the guesswork out of route planning.?
Keep reading, and you’ll find out how a delivery route optimization system makes all the difference in 6 ways.
What is Route Optimization?
Route optimisation is the process of determining the quickest, most economical routes between several destinations while taking into account practical requirements and commercial constraints.
A human route planner can function rather well if you have just one driver and twelve addresses. But when your company expands to employ numerous drivers and make 100 deliveries a day, the route planning conundrum becomes quite difficult to solve.
In a matter of seconds, the route optimisation solution generates extremely effective routes automatically using all the data required to plan a delivery trip, such as addresses, time slots, driver schedules, vehicle capacities, and more.
Why does this Matter?
Inefficient routes have a direct financial impact on delivery businesses. They affect the amount of fuel used, the wear and tear of the vehicles, the pay of drivers, and the number of deliveries that can be completed in a day. Therefore, fewer miles travelled equals cheaper fuel and higher profitability.
Also, technology is superior to humans when it comes to route planning. We lack ability to compute the various aspects influencing a route. We couldn't, and it wouldn't be correct. Additionally, if you overbook your vehicles and consume excessive amounts of fuel, you run the danger of raising your operational costs.
The Role Of Route Planning Optimization Software
Fortunately, delivery route optimisation software offers a technique to ensure that every delivery is made on schedule.
Delivery management software will use predictive intelligence and machine learning algorithms to recommend the optimal routes. Making deliveries on schedule will take into account current location, weather, and traffic information. This will make the drivers' job easier. The software also provides automated updates and real-time tracking for your customers and drivers.
It gives your driver a set route, plans for them, and indicates the order of delivery. By lowering the number of kilometres per delivery, the software shortens delivery turnaround times and boosts operational profitability. When planning routes, the software also considers current traffic and weather information.
6 Ways To Optimize Your Delivery Routes
Here are 6 ways that delivery routes can get optimised.
1. Plan Delivery Routes According To The Delivery Type
There are a few different types of package delivery:
Read more: What is White Glove Delivery Service?
2. Plan Delivery Routes Using Customers’ Shipping Addresses
Using a route planner, you can upload addresses from a spreadsheet or copy and paste them into the route planner. Importing them from your CRM system is also possible.
A route planner with eCommerce integration will generate delivery orders with customers’ shipping addresses from their online purchases.?
3. Sequence Multi-Stop Delivery Routes
Here’s where TrackoMile’s route optimisation software will do all the work. By sequencing your shipping addresses into the most efficient order, you can deliver more packages with fewer vehicles. This is helpful when there are not many delivery drivers and fleet vehicles when route planning optimization gets tricky. That’s why using a delivery route optimizer makes your life easier.
4. Optimize Delivery Routes Based On Fleet Vehicle Capacity
When mapping out your delivery routes, remember to consider your vehicle’s capacity. You should also consider business rules like delivery time windows and customer availability. These tips help you increase fleet efficiency and make sure you’re using your assets to their full potential. But luckily, TrackoMile considers all this and more in seconds; automatically pairing the vehicles with routes.?
5. Analyze Routing Data And Track Logistics KPIs
After optimising your delivery routes, remember to track your drivers and vehicles as they make their deliveries through TrasckoMile's real-time tracking solution. This way, you’ll be in the loop about whether each package is delivered on time and to the correct address. It’ll be easier to spot any potential delays and take action immediately. Plus, the built-in analytics and reporting tools will help you improve your logistics KPIs.
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6. Route Modification
Route modification eliminates the stress of planning last-minute orders and is flexible to suit any changes in your schedule. Modifying your routes also allows you to swap or add bookings if there are any errors, or changes in priority.
You can be as productive as possible, even with new orders being added to your schedule. Drivers don’t need to stop and replan the day with each new delivery, as it’s already been put into the best spot.
7. Live Updates
You can easily access live updates from your drivers when you have an efficient last mile delivery software like TrackoMile. This enables you to see where they are during their journey. This is a great way to ensure visibility between you and your team members.
You can trust that they are working productively on the assigned optimised route. Having the visibility to monitor their moves can help you know that your team is doing its best to deliver on time.
Why You Should Invest In Route Optimisation Software?
Putting money into route optimisation will increase the effectiveness of your company and your customers' delivery experiences. By using more efficient routes, this software shortens the time between deliveries, resulting in less fuel loss and less hours spent driving, saving your company money and time.
Customers are assured of a better experience with speedier deliveries.
1. Reduce Fuel Costs
As a company owner, you're constantly seeking methods to cut expenses and save money. By maximising routes, you may reduce the amount of time your drivers spend driving and also reduce fuel expenses.
By giving your driver a more efficient route, you can ensure that less time is squandered travelling back and forth between jobs. Also, less time is wasted sitting in traffic jams, and fewer drivers take the scenic route to pass the time between jobs.
2. Improve customer service
Companies are constantly looking for fresh approaches to enhance the clientele's experience. If you expedite the delivery procedure, customers will have a better experience with you since they will feel valued and important. By using route optimisation, you can also let your clients know where your driver is at all times so they can see where their order is. This aids in assuring them that it is on the optimal path and on its way.
3. Reduce Vehicle Maintenance
Route optimisation improves driver performance while on the road and saves maintenance costs for your company. With the help of this software, you can identify instances of risky driving and provide your team members with training on how to drive more defensively. Because the car isn't being driven to its absolute limit, there will be less wear and tear from careless driving as well as less costly and frequent services.
4. Improved Driver Satisfaction
Thanks to route optimization, drivers may travel considerably more easily and go about their days without interruption. Your team members are the lifeblood of your company, so making their jobs easier will boost output.
By offering optimal routes, you may free up more time for them to do tasks rather than wasting it designing their own routes and sitting in traffic. Ensuring the satisfaction of your drivers has to be a top priority while managing your company.
5. Faster Delivery
There is now a greater need for speedier service due to the rise in online sales and general changes in consumer behaviour. Drivers who travel the most efficient routes can finish jobs more quickly and often, which enables them to accept more reservations.
If your deliveries arrive faster, customers will find them more appealing and are more likely to employ your services. This boosts your company's output and enhances your general effectiveness.
6. Improved ETA’s
Route optimisation software offers live updates and visibility of your team so you can give your customers more accurate ETA’s. Knowing that the driver will be there at a certain time is reassuring to customers, instead of giving them a large window between 7 am and 7 pm.
Optimising your routes means drivers can reach customers more efficiently in the allocated time. You can also be aware of any delays or issues encountered by the driver that could impact the ETA.
Conclusion
Increasing operational efficiency and meeting consumer demand require optimising delivery routes. TrackoMile’s route optimization software allows businesses to design the most efficient routes based on various parameters, such as vehicle capacity, delivery time frames, and evidence of delivery.
Routes that are efficient allow delivery drivers to finish their routes on schedule, which enhances customer satisfaction and lowers expenses. To cut down on travel time and distance, multi-stop delivery routes can be sorted by location and given priority over deliveries that must be completed on time. By ensuring that drivers have a manageable burden, driver workload balancing reduces errors and boosts productivity.