Route optimization means determining the most efficient routes in terms of cost, resources, and time for a mobile workforce. It plays a crucial role in reducing overall costs in the logistics industry by saving both time and money.
The total market share of couriers and local delivery services in the United States crossed 114 billion dollars in 2020, according to the data published by Statista. This market has been witnessing steady growth since 2017 even despite the coronavirus pandemic. For every player in this market, route optimization software has been the key to calculate the fastest and most fuel-efficient route while taking into account multiple stops and limited delivery time windows. It offers several important benefits and must be a part of the delivery process.
Benefits of Route Optimization Software
Improves Efficiency and Reduces Cost
With dynamic route optimization software, managers can promptly plan the best routes for deliveries and adjust them at the last minute with real-time data. It also helps in identifying inefficiencies to take corrective action, reducing vehicle wear and tear, and minimizing overtime payments, thereby lowering overall operational costs, according to a blog published by Key Software Systems. It also helps in bringing down fuel consumption with specific delivery time windows and backtracking and improves the efficiency of the entire process.
Ensures Driver Safety
Apart from route optimization, the safety of drivers is also an important concern in this industry. There were 7.3 million highway vehicle crashes and accidents of all levels of severity in the United States in 2017, according to a report published by the U.S. Department of Transportation in 2018. Additionally, highway fatalities accounted for almost 95% of all transportation fatalities and highway injuries and more than 99% of transportation injuries. Using route optimization software, delivery schedules can be prepared in advance and drivers can be given an optimized and easy-to-follow route with turn-by-turn directions. It will help in reducing driver stress and the risk of stress-induced road accidents.
Enhances Customer Experience
The easiest way to ensure customer satisfaction is by providing them accurate and real-time updates on delivery schedules. Using route optimization software will eliminate the problem of incorrect ETAs and also accommodate any last-minute customer requests by modifying the existing routes. It will help in delivering an amazing experience every time and retaining customers over time.
With route optimization software, companies get access to every little detail of the delivery process. They can compare completed routes to those that were planned and check for order status history, distance traveled, duration of the delivery, arrival accuracy, etc. It helps them in making more informed decisions about their business in the future.
Route optimization improves every aspect of the delivery process, right from planning routes and efficiently managing delivery operations to ensuring timely deliveries. As the couriers and local delivery service market grows, so does the competition to be the best in the market. That is why it is important to use route optimization software and match your customer expectations with efficient deliveries.
Driving business forward.
How Pinnacle Logistics migrated to a new software platform while experiencing major growth in their start-up phase, all while continuing their high levels of service expectations for their customers. Leveraging Key Software Systems’ on-boarding process, and technology that delivered automation for their Pricing, Operations, and Communications to Customers and Drivers, were critical factors to their success.
“The Xcelerator migration team that we worked with helped us get up and running in a few weeks. Xcelerator helped put us in position to scale quickly as we took on new business…it was a huge advantage for us.” - Craig Meindl of Pinnacle Logistics
With a company mission of providing customers with speedy same-day, specialized, mission critical deliveries, it was imperative in Pinnacle Logistics' search for a dispatch technology platform to find a partner that would not only help remove the complexities of their custom pricing needs, but to have the most seamless migration possible as not to disrupt their daily business routine. That is when Pinnacle came across Key Software Systems.
In partnering with Key Software Systems, Pinnacle not only removed human error, but they were able to build and automate a specialized pricing matrix that they could not find elsewhere, enabling them to put customer focus first instead of wasting critical time on manually pricing jobs. They eliminated a countless number of manual tasks with a single, feature filled platform that had them up and running in only a couple of weeks.
Here is how Pinnacle Logistics moved their business forward to increased productivity, strengthened customer relationships, and more, simply by integrating Key Software Systems dispatch management platform solutions, Xcelerator & MobileTek, into their business.
Tell us how you got started…
What type of verticals are you serving? Target customer?
When you began to search dispatch technology platforms for your business, what was some of the criteria you were looking for in a vendor, and in a solution?
How did Key Software and the Xcelerator Delivery Management Platform help you achieve that?
With your business taking off quickly, how did you manage migrating to a new platform while running your business?
What would you say to someone who feels a migration to new technology would be too disruptive to their business?
Once you went live with the technology what features had the most immediate impact on your team?
Which features had the biggest impact on your customers?
How has our product / service improved your day-to-day life?
How did the drivers take to the MobileTek Core, driver app?
Have we made it easy?
What are some of the features that you are excited about implementing in the future?
Some feel migrating to a new technology platform may impede on business routine. With the right provider, it does not have to. Pinnacle Logistics was confident that Key Software understands how critical efficiency is in the migration process, considering they have been a trusted migration specialist for hundreds of delivery companies since 2000. They were tap dead center on that assessment. Minimizing the impact of migration speed bumps and potholes along the way was vital, making what seemed like a complex migration process but a turn signal on their journey to onboarding a new technology platform. Pinnacle Logistics gained traction right away and have not looked in the rearview since.
About Pinnacle Logistics
Pinnacle Logistics was founded in 2021 by a group of industry veterans with 60+ years of combined experience knowledge, and professionalism with one simple idea in common -- deliver excellent specialized service to the customer. We have not lost sight of that simple idea the customer and our performance remain our focus. We take care of the customer first and believe that everything else in our business flows from that commitment. Communication is the essential element that allows Pinnacle Logistics to deliver outstanding performance for our customers. Our customer service department, dispatchers, and billing department all listen to our clients and respond with timely, accurate information. We utilize state-of-the-art technology to enhance our dispatching and communication capabilities, through Internet Order-entry for customer convenience, GPS Global Positioning System for real-time driver status. Driver interactive app for real-time updates. By utilizing this experience and technology we specialize in the detail-oriented delivery of highly critical and valuable shipments including cold chain, pharmaceutical, GCT, blood/plasma, transplant organs, AOG parts, and much more.
About Key Software Systems
Key Software Systems, LLC is the developer of the industry leading Delivery Management and Optimization Platforms, Xcelerator, MobileTek and Nexus. As the only complete system in the delivery space, Key Software’s solutions handle the full spectrum of a delivery business, from order creation, optimization, tracking, warehousing, full accounting, settlement, and analytics. For more information visit www.KeySoftwareSystems.com or call 732-409-6068 to speak with a representative and see a live demo. Follow us on Twitter for up to the minute technology information @KeySoftwareSys.