With the help of modern technology and intelligent transportation routing platform or transportation route optimization software, businesses can avoid the occurrence of contingencies in advance. This also helps resolve the time and cost related challenges faced everyday the transportation industry in general. Moreover, route optimization and transportation planning in logistics take into account real-time events such as the condition of traffic, availability of equipment, personnel for loading/unloading, etc. Let us quickly understand what transportation routing is.
What is Transportation Route Optimization?
Transportation route optimization, as the name suggests, is the process that helps companies find optimal routes for their delivery drivers in order to lower the transportation cost to the least possible amount.
Unlike traditional route planning on basic app-based maps like Google maps, sophisticated route planning helps tackle operational inefficiencies like a lack of infrastructure, unavailability of drivers, high transit time, and low turnaround time of vehicles, which, thereby reduces the overall spend on fuel. Besides, real-time challenges like unfavorable traffic congestion and the unavailability of personnel/equipment can also be responded to proactively.
7 Key Challenges with Traditional Transportation Route Planning
1. Poor Real-Time Visibility
With the quick evolution of technology, logistics stakeholders need to ensure end-to-end real-time visibility. A lack of real-time visibility as with traditional transport routing software causes increased plan times, increased inaccuracy of predicted ETA, and an overall lack of communication which leads to customer dissatisfaction.
2. Lack of Automation in Delivery Allocation and Scheduling
In the present day supply chain industry, customer expectations from delivery partners in terms of the speed of delivery, 24/7 accessibility, last-minute changes, and easy returns are on the surge. These requirements cannot be met with traditional route planning software that lacks the technology and data-driven solutions like automation in delivery scheduling and delivery allocation.
3. Increasing Manual Dependencies in Transport Routing
A company might have the best human force to work for them, however, the fact that humans are vulnerable to errors cannot be disregarded. Manual dependency can cause aggravated human error leading to not only monetary losses but also dissatisfied customers.
4. Poor Productivity of Delivery Executives
Traditional route planning software lacks the aforementioned necessities like the ability to automate the delivery scheduling process which causes increased manual dependency and provides limited real-time visibility, hindering the growth and productivity of delivery executives alike.
5. Unnecessary Fuel Consumption
Researches and studies confirm that as much as 60% of a fleet’s operating expense is typically dedicated to fuel consumption. By failing to optimize a route, a traditional route planning software thereby fails to intelligently minimize the distance covered between places, causing excessive and unnecessary fuel consumption.
6. Prolonged Delivery Delays
Since traditional routing methods do not offer any real-time visibility, it closes the chain of consistent two-way communication, reporting of incidents and perhaps could also lead to complacency and a reduced sense of accountability in drivers. These factors could cause prolonged delivery windows and unsatisfied customers.
7. Poor Customer Experience
Lack of integration of intelligent technology and optimization software into traditional route planning methods leads to inefficiencies in the supply chain process, causing poor consumer experiences like delayed deliveries, inflexibility in last-minute rescheduling, pre-scheduling of arrival times, and tedious returns.
7 Benefits of Deploying Transport Routing Software
1. Automated Route Planning
Transportation route optimization software uses historical data and by analyzing real-time traffic and weather conditions can help choose the shortest route between the warehouse and the ultimate delivery address to cut down time as fuel costs.
2. Real-Time Tracking and Visibility
Real-time tracking and end-to-end visibility of trucks enabled and made possible by modern transport routing software offer better control over fleets and drivers and also enhances a two-way communication channel. Such transparency creates a sense of accountability in drivers, stops them from taking unnecessary breaks, and hence ensures timely fulfillment of deliveries with actionable alerts and notifications.
3. Intelligent Allocation and Dispatch
Unlike manual allocation and dispatch systems, transport routing and scheduling software, as a part of route optimization, allows the implementation of smart allocation of resources. This automation in the process makes sure that deliveries take place in a more pragmatic, logical, and intelligently-defined order yielding maximum output with minimum input.
4. Reduces Carbon Emissions
By offering a well-planned route that accounts for all last-minute real-time contingencies, a transportation route planning software also lets companies contribute to achieving the goal of sustaining operations. As optimization cuts down fuel costs, carbon emissions are also limited which significantly lowers the carbon footprint per delivery.
5. Seamless Pickups and Returns
Modern transportation routing and scheduling software enable open communication between businesses and delivery executives via mobile apps. This communication channel subsequently facilitates routing, sequencing, job allocation as well as real-time communication with the customers for quick pick-ups and returns.
6. Electronic Proof of Delivery
The collection of electronic proof of deliveries in the form of an electronic signature or a timestamp becomes possible with transport routing software. This integration of technology also enhances the collection of feedback and overall satisfied consumers.
7. Address Intelligence
A sophisticated transportation route planning software runs on machine learning algorithms (ML) which analyzes the successes and failures of delivery to the same address in the past, enabling self-learning and differentiating correct addresses from unserviceable pin codes. Each successful delivery is also fed into the system which then acts as a database for optimization of future delivery routes.
How Transportation Route Planning Software Improves Customer Experience
1. Faster Deliveries
By accounting for real-time traffic and weather conditions, a transportation route optimization software not only saves logistics costs but also ensures faster movement of goods, on-time deliveries, adherence to key SLAs yielding customer delight.
2. Customer Transparency
A two-way communication channel empowers the customers to schedule, track, or align the delivery times. Customers can also track their packages in real-time which enhances transparency and reduces the occurrence or chances of failed deliveries.
3. Highly Accurate ETAs
A data-driven, established transport routing software uses cloud-based tools that facilitate GPS tracking and allows the monitoring, tracking of vehicles to provide highly accurate real-time ETAs.
4. Ensures Contactless and Curbside Deliveries
COVID-19 introduced a need for contactless deliveries of packages. This situational demand can be fulfilled via route planning software as it can help consumers stay informed via consistent mobile alerts and to track their packages through live-tracking options. The communication reduces the chances of an unavailable customer and also reduces the on-ground time of drivers.
5. Drives Seamless Communication with Delivery Executive
Since the integration of routing software translates to enhanced end-to-end visibility, it becomes easier for the managers to monitor logistics as well as for drivers to communicate predictive delays and contingencies like vehicle breakdowns. The possibility of this communications further allows those in managerial positions to undertake mitigative measures and to avoid a disastrous consumer experience.
What are the Advantages of automatic Transport Routing and Scheduling?
Less Route Planning Errors
Transportation routing and scheduling being heavily dependent on data and AI-driven methods minimize the need for human intervention, subsequently reducing the errors arising from human error or negligence. Besides, scheduled route optimization, unlike traditional routing methods, empowers businesses to accept operational dynamism and complex business constraints by pre-determining efficient delivery routes.
Faster Delivery Task Allocation
By negating the need for manual, tedious planning of routes, an automatic transport routing and scheduling software uses data-driven recommendations based on historical trends, priority, rider skills, and potential contingencies like road blockage or weather conditions to enhance an optimal task allocation. This facilitates on-time fulfilments, lower labor costs, and more productive drivers that can make additional stops on automated routes if need be.
Reduced Manual Intervention
Transport routing software acts as a comprehensive solution to inefficient logistic operations as well as reduced productivity by introducing automated decision making for a highly fool-proof work-flow with minimum scope for human intervention or error.
An automatic transport routing software, as it must now be clear, optimizes delivery routes on the basis of otherwise cost-enhancing metrics including geography, time, and vehicle. By accounting for contingent roadblocks yet offering the shortest, optimal delivery routes, the deployment of such software ensures cost optimization across the delivery process.
Ability to Quickly Accommodate Customer Changes
The agility of a logistic business in today’s competitive market can act as a key success factor. By accommodating last-minute changes in a customer’s orders and preferences with instant and new and optimized routes, automatic transport routing and scheduling can help boost customer satisfaction and profits simultaneously!
How Global Enterprises are Leveraging FarEye’s Transportation Routing Software
With our sophisticated, AI-driven transportation route planning and optimization software, we empower businesses across industries with the most efficient routes that get the job done quicker and with reduced manual dependency. Our obsession is to ensure a smooth, clock-work collaboration between various stakeholders while building high-visibility into ground-level operations.
Let’s start optimizing your delivery routes, book a demo with FarEye today!