The optimization of transport routes is now essential for logistics companies wishing to increase their productivity. Indeed, many transport companies are switching to the use of route optimization software. Their objective is to simplify the management of their activity to save time for their teams. The optimization of transport costs is also one of the advantages. This can only be done with the use of tools tailored to your industry. Discover the benefits of optimizing transport routes.
In the past few years, we have seen an increase in the number of customers to be delivered and in logistics constraints. This is why it is more and more difficult for the Transport Operations Manager to define optimal route plans without the help of specific tools. Indeed, several hours are generally necessary to determine a route, limiting the operational costs associated with driver trips. But route optimization solutions can create these routes in a few minutes and ensure their cost-effectiveness. Therefore, the optimization of logistics routes requires a digitization of the transport company’s operations.
There are many benefits of route optimization:
In a highly competitive environment, meeting consumer expectations is now a priority. Acquiring a new customer is now particularly expensive. Therefore, carriers must succeed in building customer loyalty. With the development of e-commerce and the multiplication of distribution channels, the logistics chain continues to become more complex. Thus, delivery is a critical step for the carrier. Indeed, consumers are particularly demanding on the time of availability of products. Transport companies must therefore succeed in reducing the delivery time to the customer’s home. Obviously, without impacting distribution costs.
Delivery routes must be smartly planned to ensure that delivery time are respected. That is the role of a route optimization software. Indeed, this system allows you to determine feasible route plans in order to deliver each customer on time. Furthermore, the logistics route optimization software allows to improve the delivery time. Indeed, the software builds the routes in order to limit the number of miles traveled between two addresses. The time slots communicated to the customer are accurate. Customers are also informed throughout the delivery process thanks to the automated sending of notifications. The use of a logistics route optimization software allows to offer a smooth delivery experience to the customers.
A fleet of vehicles has significant monthly costs for a company due to maintenance, fuel expenses and tire wear. These operational costs are particularly high for truck fleets. Indeed, the average fuel consumption is higher than the one of light commercial vehicles. That’s why the managers in charge of the logistics strategy need to reduce these operational costs. In this way, they can increase the profitability of the transport company.
How to optimize transport costs ? Here is the question that every Operations Manager has to answer. First of all, the transportation route optimization software allows to maximize the use of resources. Indeed, the tool allows to smartly assign shipping operations to drivers while respecting the logistics constraints.
An optimal management of the vehicles’ capacities avoids empty shipments. For example, volume, weight, pallets, parcels, etc. So you can complete your current routes with fewer vehicles. The maintenance costs of the vehicles as well as the fuel consumption decrease. This makes the routes more profitable. The deployment of such a solution within your company can reduce your operational costs by 35% on average.
Transportation route optimization software also allows you to meet increasing demand. Even more important, without having to hire new delivery drivers. In fact, your drivers can complete more deliveries every day thanks to a decrease in the number of miles traveled between two addresses. Therefore, a transport route optimization software is particularly profitable in the short term.
The creation of route plans must meet two constraints. Indeed, the presence of multiple business constraints and the geographical distance between customers make the process more complicated. The person in charge of transport planning must manage to integrate all these logistics constraints. This must be done while limiting the number of miles traveled between two addresses. Several hours of manual planning are required.
But there are solutions that can automate the process and create optimized transportation routes in just a few minutes. Indeed, optimization algorithms allow to build the routes while respecting the different business constraints. For example, the opening hours of customers, the capacity and unavailability of vehicles, the availability, working hours and breaks of drivers, the time slots for delivery, the duration of loading and unloading.
In addition, logistics route optimization software offering a driver tracking system saves time in managing unexpected events. The Operations Manager can quickly assign emergency deliveries using this tool. The optimization of the transport routes aims at limiting the additional miles and ensuring the delivery times. Indeed, the geolocation of vehicles allows the software to determine the best dispatch riders to complete a delivery.
The implementation of new measures to reduce polluting emissions in urban areas is driving change. Managers of corporate fleets will have to consider new solutions to limit their carbon footprint. Logistics optimization software can be used to avoid empty shipments and eliminate wasted miles. Thus, the greenhouse gas emissions linked to the drivers’ trips are reduced. There are also software making possible to optimize routes for electric vehicles. Today, these low-emission vehicles are the right option. Especially, for transport companies that have to drive in town centers where there are Low Emission Areas.
The optimization of transport routes also makes it possible to improve the working conditions of drivers. Indeed, managers can dispatch daily route plans directly on their smartphone. The mobile application for route tracking is linked to Waze or Google Maps navigation tools. It allows drivers to follow their routes. In addition, this tool allows to determine balanced and feasible routes. These routes take into account the break times and working hours of the drivers.
In conclusion, transportation route optimization software allows your company to meet customer expectations in terms of delivery times. This tool also improves the profitability of your planning teams and drivers. In addition, digitizing your logistics business will offer your shipping company a quick improvement in revenue. Here is what the AntsRoute route optimization software can do for you.