Planning routes can become a nightmare. But it’s a necessary evil and a lot depends on it. A key to successful delivery, one that’s cost-effective and delights customer, is accurate route planning. What makes route planning complex is that it’s dependent on a lot of external factors like risks, fuel costs, government, and environmental regulations, driver shortages, among others.
Growing levels of carbon emissions are driving nations and global organizations to build stringent regulations around reducing the carbon footprint. For instance, the US’ Clean Air Act allows the government to levy fines of more than $30,000 if businesses do not follow environmental regulations. Then the US transportation industry suffers from $15-$30 billion worth of cargo theft each year. It’s important to avoid risk-prone areas. Lack of availability of drivers, especially for long haul transportation, makes it important for logistics stakeholders to ensure the available ones operate with levels of productivity. These factors make it crucial for businesses to drastically enhance route planning.
To simplify route planning savvy enterprises are leaving all the math, permutations and combinations to intelligent route optimization software.
Routing Software To The Rescue
A route optimization software quickly can run complex algorithms and churn large chunks of data to help organizations plan highly efficient yet cost-effective routes. This easily addresses the ‘traveling salesman problem,’ that is finding efficient routes that connect point A, B, and C. Also, with the growing popularity of same-day deliveries, planning routes properly has become even more important. A key to ensuring to achieving this is allocating the most efficient routes to delivery fleets and then keep optimizing them in real-time. A route optimization software can integrate with existing scheduling and dispatching system and help delivery stakeholders pro-actively plan new routes.
When minimizing the distance that needs to be traveled, such software generates routes by taking into consideration things like vehicle availability, schedule constraints, empty miles, ETAs and more. Overall, this also reduces the time a vehicle spends on the road. On the other hand, lesser the time spent on the road, lesser will be the need for maintenance and investment in fuel and thereby positively impacting the total cost of ownership. Also, it ensures greater safety, as the popular saying suggests--the safest miles are the miles never driven.
A global parcel service provider leveraged a route optimization software and reduced 45.8 million miles over the last few years. This helped the business slash 1000 delivery trucks from their delivery fleet and reduced their fuel overheads by 40 percent for each delivery.
Address accuracy is vital when it comes to planning efficient routes. Routing software leverages machine learning algorithms (ML) than can self-learn the ‘correct’ address just from delivery addresses, successes, and failures in the past. In other words, it converts lexical addresses into geographic coordinates (geocoding) as simple as latitudes and longitudes, which are used to mark positions on a map. Once delivery is done successfully on any address, next time, the system can fetch the address internally, so that the last mile connectivity will be faster and more accurate. By accurately mapping customer addresses, route optimization software empowers businesses to shrink 28-32% of logistics costs by reducing miles per delivery.
FarEye is empowering global businesses to plan highly efficient and cost-effective routes. Businesses have successfully reduced their delivery turn-around-time by more than 26% by using FarEye. To know how we can help you achieve the same signup for a quick demo here.