Why to use route planning software


Why to optimize delivery routes

Discover main advantages of route planning software

Optimization is a popular word these days, it is common in all industries and in all regions. Have you ever wondered why this keyword plays such a role in business?

We all have several choices for a product, service, or solution. Cost and quality are the two main factors that influence the final decision. Optimizing the delivery route is the most efficient and consistent method to achieve cost minimization and maximize the quality of your delivery.

Why optimize delivery routes?

Let's take a look at transport routes and the resources you use to manage delivery. This is an important detail that you need to focus on, and it can often become a bottleneck not only in customer service, but throughout the enterprise. If you do not calculate the need for resources and vehicles, you may have extra resources that will be idle, not bringing profit and increasing costs. If you underestimate the requirements, then you will have delays in the delivery time, and in the end your customers will be unhappy, which will also affect the company's profits. The main aspect in both scenarios is that you could not plan your delivery routes correctly.

You may have made route planning, but this was done several months ago when making annual or quarterly forecasts. Much has changed in a few months. Possibly, the number of deliveries and geographical coverage have been expanded. Maybe the cost of fuel has changed. Perhaps new roads were built or new vehicles purchased. You did not take any of this into account while calculating your forecasts. And now you are standing in your warehouse and you understand that you either have too much or not enough resources. There is one way you can solve this problem in such a way as to minimize your losses or even eliminate them completely. And this solution is logistics management through automated planning and optimization of delivery routes.

How to optimize delivery routes?

Consider this situation: you just reported that the cost of fuel has increased by 5%. This will undoubtedly affect your budget and reduce your profits. You can do two things to offset the cost increase:

1. Rebuild your current delivery routes so that you use the minimum amount of transport in transit and in stock.

2. Determine the bottlenecks in your delivery network to determine the best possible delivery routes, not only in terms of time and distance, but also to meet the time preferences of all customers and restrictions on the capacity of all vehicles and delivery specialists.

Any of these solutions will help you better manage your logistics. In the examples above, two points are worth noting:

1. The two solutions are not mutually exclusive and, therefore, can work in parallel. You can optimize resources with optimized delivery route. This is the so-called double strike.

2. However, there are risks and a compromise must be found when there is uncertainty in the schedule. If you are engaged in the production of ice cream, the quality of transport is just as important as the optimization of the delivery route. If delivery takes much longer than expected, the delivered product will not withstand the expected quality. You will have to optimize delivery routes, avoiding traffic and controlling the quality of your products in real time.

These goals can only be achieved using software to optimize TLKA's delivery routes, because with its help you can quickly make all changes to conditions and plan optimal delivery routes every day. All your routes will take into account only current restrictions, as well as your current goals and preferences. Now you can easily level any changes and achieve your goals.

Andrii Popov

Written by ANDRII POPOV

Andrii is passionate about business and startup intelligence. As most of the startuppers he has got experience in almost all business areas.
Andrii has MA in Marketing from the University of Queensland.

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