Cutting Costs and Adding Efficiency With Route Optimization Software
In our last blog, we discussed high supply chain transportation costs and some key ways that businesses can offset them.
This week, we're diving into more detail specifically about how Routeique™ can help reduce transportation and delivery costs by adding efficiency to your operations.
Dynamic routing is beneficial for those who want to create new tours each day based on the volume of orders and available resources, to save both time and money.
Static routes are ideal for situations where it is important for the same driver to interact with the same customers each week.
The right data can not only help optimize your routes but to track performance over time.
Using Route Optimization Tools
After our latest update, users can now have full control over whether they choose dynamic or static routing within the Routeique™ platform.
Each of these options has its own benefits, and users can also run a combination of both strategies. Below, you can learn a bit more about each.
With dynamic routing, each day, you can compare your available delivery units to the locations of customers who have ordered that day. This can also consider vehicle capacity, order status, order transport requirements.
The system then automatically determines the best way to route those orders. To get a bit more technical, the dynamic route optimizer creates daily tours, which is what we call a collection of orders for the day. When you create and optimize a tour, the system will pre-cluster orders into optimal routes.
You have the flexibility to:
- move orders between tours
- create new tours
- adjusting the sequence
- control where routes end based on where you want the driver’s trip to end
- set up automatically generated tours each day
- tours will be created for any orders sitting on the route at a specific time each day
This option is ideal for:
- clients who import orders into Routeique™ from an outside system. It makes it easy to see a complete look at all of their orders for a day before making routing decisions.
- anyone who wants to have more of a hands-on approach when building their routes.
- easily dividing orders between drivers, since you know exactly how long each route will take.
- users seeing an increase in home deliveries due to COVID-19.
- In short, being able to create new tours each day based on the volume of your orders and available resources helps you save both time and money.
Static routes use your customer locations to determine what route to assign them to. All orders for this customer are always placed on their assigned route. It’s important to note that you can still use route optimization to determine the optimal delivery sequence for orders on a static route
Static routes can also be beneficial in specific cases.
For example, they are ideal for when:
- you want to know exactly what days drivers are visiting what customers
- it is important that drivers build a good rapport with the customer
- to do this, you would ensure the same driver would take the same route and visit the same customers each week
- your drivers to get to know your customers and their delivery or merchandising requirements
Our route optimization tools do more than just help you add efficiency to your transportation. They provide you with the info you need to improve your operation over time.
Our route optimization tools take into account:
- service windows
- the length of time that a drop takes
The route planner shows the user the optimized sequence. It also provides you with a time estimate for the route, as well as an estimate for the cost of gas.
All of this info is obviously extremely useful in planning your fleet’s deliveries for the day, as well as for allowing you to easily track key expenses.
However, there are also several other ways these data points can be useful.
You can use them to:
- compare actual driving time against the estimate
- determine if your team is following the suggested route order
- provide customers with accurate estimated drop times
To learn more about our newest features and enhancements, get in touch with us by clicking below.