Currently, freight movement accounts for 39% of all worldwide transportation energy consumption; trucking is the most energy-intensive mode, accounting for 23% of this total. In order to efficiently meet the expanding logistical demands of businesses and consumers while simultaneously minimizing the related negative externalities, it is imperative to guarantee that freight activities play their intended function in the economic transaction of products.
One of the major obstacles in any freight movement is that firms involved in transportation and logistics frequently operate on tight deadlines and don't have the luxury of spending hours in a traffic jam. Today, last mile delivery operations are responsible for up to 41% of all supply chain expenditures and 53% of all shipping costs. Poorly planned delivery routes are the primary cause of the majority of this expense. It obviously needs specialized software with more advanced features and capacities.
What is Route Optimization?
The practice of determining the best and most cost- effective path for delivery drivers is known as route optimization. Logistics organizations utilize the strategy of route optimization to create effective delivery routes, which is made possible by route planning software.
Route optimization is crucial to success because it enables companies to successfully execute orders while taking into account variables including driver schedules, total stops and delivery time. Route optimization is about finding a route that is effective and satisfying for all of the factors involved, not about finding the shortest or cheapest route.
Finding the optimum routes is a laborious procedure when done manually. There are literally millions of potential route options but manually it becomes tough. With route optimization software, you can quickly determine the most efficient routes.
Are route planning and route optimization the same?
The words "route planning" and "route optimization" are sometimes used interchangeably when discussing transportation and logistics. In fact, they are very different and each has a certain function in terms of routing.
Route planning can be also termed as route mapping or route sequencing and it is the procedure of using an existing order list to arrange the relevant destinations in a way that promotes efficiency and economy. Route planning can not account for the complexities of more dynamic routes and events that might affect a driver's shift.
Route optimization, on the other hand, helps businesses to improve business processes by enabling them to advance their route planning. From a commercial standpoint, route optimization enables a business to incorporate planning factors that they would typically employ to boost business efficiency.
Ways Software for route planning can increase effectiveness while reducing cost
Clearly defined delivery routes: In order for dispatchers and drivers to understand at a look where the different stops are, where to go and any adjustments that occur depending on real-time traffic circumstances, route planning software converts delivery routes into a visual map. This allows for real-time route planning, with adjustments being delivered to the relevant drivers immediately.
Avoid delivery delay while cutting cost: According to the research, a delivery route that is already planned may reduce your fuel and travel time by 20% to 40%. In addition to helping the fleet, effective truck use will reduce delivery times and save fuel costs.
Real Time tracking: Route planning provides real time tracking and proper visibility of the vehicle. You will get real - time driver updates, ETA’s and that will increase customer experience.
Freight systems need to be expanded with different technologies in order to support logistical chains, save costs, and improve services for customers. Digitization may integrate the supply chain from the stage of demand forecasting to cargo distribution. Truck routing when combined with proper technological support and focused investment in software like route planning can make the delivery task much more efficient.
Along with the product quality, a logistics company's quick and efficient delivery method makes it the customer's first option. The need is met by the route planning software feature, which enables businesses to improve their shipping operations while maximizing resource efficiency and minimizing costs. The potential solutions provided by these technical, digital, and operational developments have the power to transform last-mile delivery.
How to choose route management software?
While route optimization is increasingly becoming a need, it is as important and crucial for organizations to make a sensible choice in their business route optimizer. A routing software system must include a web-based, remotely accessible route optimization feature, provide quick, various optimized route suggestions, be updated with the most recent mapping information, support geofencing, and have analytics and report management capabilities.
Which is the best route planner app?
Fleetx's Smart Route Planning Software offers businesses the ability to choose the most efficient route for their trucks and offer their customers accurate real-time ETAs. Using route optimisation, businesses can automate delivery planning to improve route performance and track route progress in real-time. It also makes it easier to share Live ETAs and delays and maximize ROl with each trip.