Overcoming concerns to adopt route optimisation software

Published on 18 March 2024 • Reading time: 7 min read

Maximising efficiency, minimising costs: that’s the objective of every business. At a time when every penny counts, optimising operational efficiency while reducing costs has become a key priority for companies.

At the heart of this digital logistics transformation is route optimisation software, such as AntsRoute, which helps companies to organise their deliveries more effectively. However, despite their obvious benefits, some SMEs are still reluctant to take the plunge, held back by the costs associated with adopting these technologies.

What are the main financial obstacles preventing some companies from investing in route optimisation software? Is it profitable in the long term? If you’re asking yourself these questions, you’ll find the answers in this article and clear up any concerns you may have.

Table of contents

• The main financial obstacles to adopting route optimisation software
  1. The high cost of implementation
  2. Maintenance and updating costs
  3. A temporary loss of productivity
  4. Costs associated with the risk of errors
• A profitable investment in the short term
  1. Reduce shipping costs
  2. Optimise delivery routes
  3. Greater short-term visibility and monitoring
  4. Reduce errors, delays and missed deliveries
  5. Optimise stock management
  6. Valuable time savings
• Route optimisation software: efficiency, savings and competitiveness

Adopting route optimisation software is a winning strategy in 2024. The investment, initially perceived by companies as a constraint, is synonymous with short-term profitability.

The main financial obstacles to adopting route optimisation software

Although the benefits of digital logistics are undeniable, some companies are still reluctant to take the plunge, mainly because of the financial costs involved. Here’s an overview of the main concerns:

1. The high cost of implementation

“We don’t have the budget to invest in this type of software” is the comment often made by companies. It’s true, investing in route optimisation software has a cost.

The initial cost of adoption is often one of the first obstacles mentioned by businesses. This digital transition involves investment, which can be discouraging, especially for SMEs with limited resources. The costs associated with installation, licences and staff training can be an obstacle to the adoption of these solutions.

The initial cost of adopting route optimisation software is quickly recovered.

2. Maintenance and updating costs

In addition to the start-up costs, some companies are discouraged by the ongoing costs of software maintenance and updates, as well as potential periods of downtime.

The quality of the maintenance and technical support service offered by the software supplier can influence the total cost. It is therefore crucial to consider the short-term consequences of any breakdown or technical problem.

Choosing software with efficient support can reduce downtime and, ultimately, cut your costs in the short term. AntsRoute experts offer training and implementation workshops to learn how to use the software, and a customer service team is available to answer any questions you may have.

3. A temporary loss of productivity

The transition to a new system can cause disruption and require time to adapt, which can temporarily reduce productivity. Employees may need some time to get used to the change. And lost productivity often means lost money, which is a major concern for companies reluctant to adopt new technologies.

However, by opting for AntsRoute, Home & Moi has seen its productivity increase by at least 10%.

4. Costs associated with the risk of errors

Another common concern is the risk of errors associated with the use of new software. The companies are worried about losing control over their operations, which could increase errors in the delivery processes. If the data entered into the system is incorrect, this can lead to inefficient routes, resulting in additional costs.

It should be noted that these risks can be minimised with the right training and quality controls.

But be warned, the advantages far outweigh the disadvantages.

A profitable investment in the short term

Perhaps you or your team have already considered investing in route planning software, but rejected the idea because your deliveries arrive as planned every day. Or maybe your routes are predictable: same routes, same days, same orders, same customers. But that’s a short-term view.

The benefits of route optimisation software.

1. Reduce shipping costs

Investing in route optimisation software can be a smart choice in the short term. By carefully analysing delivery data, this software can create optimised routes, reducing the total distance travelled by drivers and the associated fuel costs by up to 15%. As the technical manager of a company specialising in medical equipment explains: “AntsRoute has saved me an incredible amount of time and money”.

Many solutions have flexible pricing plans, allowing you to start with a minimal investment and adapt its use to your growth and needs. At AntsRoute, plans are monthly and without commitment.

It’s important to view investment in route optimisation software as a key driver for reducing costs in the short term, rather than as an additional expense.

2. Optimise delivery routes

Inefficient routes mean you spend money unnecessarily on fuel, vehicles, drivers, insurance, human resources, maintenance… and the list is endless.

With AntsRoute, for example, you can identify the most efficient routes, minimising the number of kilometres travelled, fuel costs, CO2 emissions and the time needed for deliveries. No more unnecessary journeys!

The orders are assigned efficiently between the available vehicles, taking account of their load capacity and using them to their maximum potential.

By planning routes more efficiently, you can carry out the same routes with fewer vehicles, thereby reducing the size of your fleet. By eliminating vehicles that are not fully used, you can increase productivity while reducing operating costs.

“Using this software has saved us 40-50% time on deliveries,” says Maïté Galou, founder of Licorne Express.

This is also the case with the reduction in journey times. You free up valuable time for more productive tasks. As one manager says: “To date, I’ve saved my delivery drivers time, which more than covers the cost of the software”. Drivers can make more deliveries in the same amount of time, which optimises the use of available resources and increases the company’s overall productivity.

The AntsRoute route optimisation software.

3. Greater short-term visibility and monitoring

Thanks to advanced functionalities, your company can track the progress of routes in real time, monitor driver performance and react quickly to unforeseen events.

This increased visibility enables proactive management of delivery operations, which improves the company’s global efficiency and strengthens its competitiveness in the marketplace. With AntsRoute, you have access to a module for analysing the routes completed compared with those planned. You can find out the total cost of your routes, the average cost per route and per delivery.

4. Reduce errors, delays and missed deliveries

Acquiring a new customer is 5 to 25 times more expensive than retaining an existing one, according to the Harvard Business Review (HBR). This study also shows that by increasing the customer retention rate by 5%, profits can increase by 25% to 95%. This is a wide range, but it highlights the significant impact that a small improvement in loyalty can have on profitability.

Of course, everyone wants to satisfy their customers. But missed or late deliveries can be costly. If your orders don’t arrive on time, you’re probably spending more staff on your customer service to answer the same “Where’s my order?” question over and over again, and possibly paying drivers to make a second delivery attempt.

By drawing up efficient and accurate plans, you can reduce costs and improve on-time delivery.

The AntsRoute link system reduces missed deliveries.

5. Optimise stock management

There’s more to integrating route optimisation software into your company’s operations than simply planning routes. This smart system can optimise not only vehicle routes, but also stock management. Thanks to its advanced features and the integration of automated stock management systems, this software effectively synchronises deliveries with available stock levels.

This ensures that your products get to where they are needed, at the right time, reducing the risk of stock-outs and avoiding overstocking.

6. Valuable time savings

By avoiding unnecessary journeys and minimising delays, you can guarantee fast, efficient deliveries to your customers. This punctuality boosts customer confidence and enables the company to handle a higher volume of orders, which can lead to increased revenue.

On average, using such software can reduce the time needed to plan routes by 70 to 85%. This efficiency also translates into savings for your organisation, as Raheem Attoumane, Managing Director of MajordHome Services, explains: “The time needed to organise concierge services has been divided by 10. The time saved with AntsRoute is impressive”.

Route optimisation software: efficiency, savings and competitiveness

By overcoming these financial obstacles with robust solutions, you can fully benefit from the advantages of digital transformation in logistics. The initial and ongoing investment in route optimisation software translates into significant short-term savings, improved operational efficiency and greater competitiveness in the marketplace. As Alain Canu, Head of Partnerships at Océan-Orange Business Services, points out, it’s even “a geographical route optimisation solution that is ideally suited to the needs of VSEs and SMEs”.

From the very first months of use, your company will make significant savings. AntsRoute is available from €17 per month per vehicle. Don’t hesitate any longer, and take advantage of the free 7-day trial!

WRITTEN BY

Florine Martin
Florine has been a freelance web copywriter since 2021, writing for a variety of clients in a range of sectors. Since the beginning of 2024, she has been writing articles about logistics for our company, AntsRoute.