Route Planning: What You Need To Know To Cut Your Cost in 2021
The secret to the success of every shipping business is to maximize efficiency. Best practices can sustain consistent profit margins while maintaining outstanding services. It is all done without the expense of the price point the target market could afford. A considerable portion of optimizing shipping operations goes into route planning.
When it comes to the logistics and transportation industry, the hard work goes to waste without proper route planning. It allows businesses to utilize the route that promotes cost-effectiveness and productivity. A comprehensive plan involves a structured framework and strategies to optimize space, fuel, time, and workforce to deliver the best results. Simply put, the delivery routes are the keys to improving the entire supply chain.
To effectively sustain the entire supply chain, a well-designed route can be helpful to businesses. By reducing fuel costs, minimizing labor, and streamlining services, companies can tremendously cut down operational costs. Now that you can deliver packages beyond the time frame, your business becomes more reliable to the customers. Let us take a closer look at the best solutions for route planning that reduces operational costs.
Maintaining a Comprehensive Route Planning Framework
Shipping businesses can enhance delivery speed through a comprehensive route planning framework. It is composed of an in-depth guide on the logistics strategies for the delivery personnel. This guide helps them understand what they need to work on to remain efficient, from the most idyllic routes and shipment details to asset utilization.
A route planning framework can be written on paper for the team to read before making the deliveries. However, most companies have already gone paperless, transferring the route guides online. Either way, the businesses must update them regularly. Make sure that it matches the current market conditions while still in alignment with your business objectives.
Automated Route Planning
Another way is to leverage the rapid advancements in technology today. The emergence of routing and scheduling programs allow businesses to streamline route planning. There are even route planning applications like Track-POD that utilizes advanced algorithms to analyze optimal routes. It automates the route planning procedure, including assigning orders to preferred routes and geocoding.
Geocoding refers to the process of mapping out the areas within the system (geofences) virtually. Geofences can help organizations understand the degree of demand within the region. This data allows them to allocate substantial resources (drivers and vehicles) within the geofences with most customers.
Shipping businesses can also assign teams that are more attuned to certain territories to these geofences. The route planning app directs the drivers that can likely deliver within the indicated time frame. In this way, drivers can work based on their location, capacity, and availability. Ultimately, this can be effective in reducing the number of failed and delayed deliveries.
Route Optimization Features Worth Exploring
To remain efficient, it is integral that businesses acknowledge the importance of delivery windows, consumer behavior, and route conditions. They should see to it that their operations can be suitable for evolving needs. In this way, they can ensure that both fuel and operational costs remain minimal.
Here are some features worth exploring that you can find from route planning apps:
- Dynamic Geocoding
As previously mentioned, this analyzes and monitors the geofences that the system holds. Delivery personnel don't need to check-in and out of their locations to save time. This process is beneficial for drivers that have to deal with multiple stops in a single route.
- Auto-change Synchronization
This feature eliminates the need for another device to synchronize mobile devices with website actions. The swift and automatic integration allows drivers to be more productive without shelling out money for expensive hardware.
Another route optimization feature worth exploring is live vehicle tracking. Many route planning applications provide the status of delivery in real-time located in the comprehensive dashboard. This option promotes convenience allowing managers to coordinate with the system to perform route planning. They can also communicate with the drivers to confirm the ETA or status of any delivery.
Take advantage of apps that offer a free route planner for unlimited stops to maximize efficiency. For delivery arrangements that involve on-demand pick-up requests, the personnel gets informed of new requests in real-time. It gives the drivers a comprehensive breakdown of the tasks they need to accomplish on top of displaying optimal routes. Additionally, this feature becomes especially helpful when drivers encounter a predicament that can cause delays and disruption of delivery. Whether their vehicle broke down or the customer modified delivery information, the estimated arrival time gets recalibrated immediately.
To gain a clear understanding of how route optimization works with route planning apps, watch this video from Track-POD.
- Assessment of Local Traffic Conditions in Real-Time
Another valuable feature of route optimization applications includes the assessment of local traffic in real-time. The system analyzes the local traffic conditions and their impact on the delivery speed. When the route planning app detected traffic in a specific area, the suggested route would adjust to provide riders the fastest path to reach your destination.
Moreover, it is also worth mentioning the route planning apps that integrate chat functions. This feature allows managers and drivers to coordinate with each other and share live traffic updates. It ensures that the team is always informed of any traffic constraints when the system fails to detect the issue right away. More importantly, it keeps the organization proactive in maintaining close communication in the event of critical situations.
Maximize Truck Efficiency
Another way to effectively cut down the operational costs is through maximizing the space of the fleet. The procurement of fewer packaging materials and limiting each parcel’s size to maximize the storage space will allow businesses to ship more goods in one vehicle.
Consolidation of Different Packages
Although the combination of small packages in a single transit requires strict coordination with customers, it streamlines delivery and transportation costs. Offering consolidated shipping services can also open doors for customers looking to save hefty delivery fees.
Assigning Delivery Personnel with Experience in the Area
It would make sense to assign drivers who are more familiar with the area’s routes and processes. Deploying personnel with local knowledge can provide valuable input to streamline deliveries. Plus, the shortcuts to get around accidents and traffic congestions to getting updated with routing conditions have even more to offer.
TrackPOD features advanced scheduling features to streamline the assignment of deliveries. Watch it here.
Eradicating Empty Transport Miles to Save Fuel
Leveraging route planning apps provide businesses access to advanced scheduling and routing software. It can help them reduce fuel usage, take advantage of all the available resources, and eliminate hefty transportation costs. In the long run, route optimization reduces the total annual mileage of the fleet.
Moreover, the goal of route planning is not limited to giving drivers the shortest route. Route planning apps can eradicate empty transport miles to save fuel and eliminate excessive carbon emissions. Reducing the number of empty miles indicates that the system assigns drivers new orders while they are on the road.
This automation allows them to work on multiple orders in a single transit instead of going back to where they started to obtain new deliveries. Managers can check with vehicle tracking tools for the ETA and determine whether additional deliveries are feasible. Overall, the key to increasing savings is calibrating the route plan with the highest accuracy.
A route planning app that implements valuable features can go a long way in helping businesses cut down operational costs. From optimizing suitable routes, getting on top of traffic and infrastructure updates to improving ETAs, take advantage of these data to improve performance, and provide quality services.
Applications like Track-POD are the all-in-one mobile solutions for efficient real-time driver performance monitoring. This unique delivery system works as a route planning software for arranging multiple deliveries with ease. Track-POD outstanding features include live tracking, Sign-on-Glass technology, instant notification, and electronic proof of delivery (ePOD).