Dynamic Routing in Logistics: The Key to Sustainability

The Covid-19 pandemic has created a new generation of customers who prefer a safer and faster method of delivery of goods rather than venturing out themselves for the same. For a company to survive during these changing times, logistic services need to be cost efficient, safe and fast in terms of delivery to their customers. The key to a successful logistics operation is to implement a route optimization method by which the most efficient routes are allocated to delivery fleets.

Dynamic vs Static Routing

Routing in logistics can be broadly put into two categories - static and dynamic. Static routing implies sending deliveries through pre-configured routes with no deviations allowed. These routes are fixed and if the predefined route becomes unavailable, deliveries stop which results in loss of business and customers. A static routing approach restricts the company from creating a route based on real-time information, and also does not provide ways to communicate between delivery management and drivers, resulting in late delivery of goods.

To maintain customer satisfaction and eliminate logistics failures, implementation of a dynamic routing platform will help. Dynamic routing in logistics means that routes are created from scratch using a given set of orders and also allow adjustments based on traffic-related or weather issues. The main advantage of dynamic routing is scalability and adaptability. A dynamic routing platform is able to adapt and implement changes as and when the company grows. 

4 Key Advantages of Dynamic Routing

With the advancements of technology, companies have various means to collect data through GPS navigation system, real-time location services, wireless technologies, RFID and many more, making dynamic routing a reality. This collection of data provides insight into the current location of the fleet, traffic, weather conditions, fuel utilized and many more aspects related to logistics which can be used to revise the delivery route to meet customers’ needs and delivery schedules. A dynamic routing platform would be able to reduce delivery errors, increase on-road efficiency and avoid last-mile complications.

1. Real-Time Tracking

A dynamic routing platform allows companies to track delivery executives in real-time. This fleet visibility helps in utilizing assets to its fullest to streamline delivery operations. Dynamic routing platform would help companies improve the delivery distribution, assign additional deliveries and reduce idle time. Better productivity will increase the overall revenue of the company. 

2. Use of Analytical Tools

A dynamic routing platform provides various analytical tools to print reports to review the on-road performance of the fleet. These analytical insights will help the company to optimize the delivery routes based on past experiences. When faced with real-time problems like weather or road blocks, dynamic rerouting feature helps suggest alternate and efficient routes for delivery. Route planning helps to coordinate delivery time slots for customers and to minimize the stop time at each location. A well-planned route helps the company reduce the levels of carbon emissions and pollution for the environment.

3. Customer Satisfaction

Dynamic route planning software provides updates on routes, track a vehicle, and provide information on completed deliveries. With this ability to provide an estimated time of arrival for goods, customer satisfaction is assured. It also provides tools to track vehicles and monitor what drivers are doing on the road in real time.

4. Cost-Effectivity

In the logistics sector, the term ‘empty miles’ refers to the distance traveled while generating no revenue for the company but incurring transport operating costs. This platform helps plan the shortest and the most fuel-efficient route, especially for return journeys, and also allows incorporating pickup jobs for fleets returning empty after delivery.

The cost for the implementation of a dynamic routing logistics platform is insignificant when compared with the benefits. Dynamic routing will help companies to manage their deliveries, improve productivity, save fuel costs and add more stops to their delivery route while providing the customer with a faster delivery. Companies will face huge financial challenges post the Covid-19 pandemic. Dynamic routing is a key to sustainability as it allows greater transparency, productivity and flexibility in fleet management.

Also Read

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