HOW MAJOR COURIER COMPANIES OPTIMIZE THEIR ROUTES
Have you ever noticed how scout bees fly long distances in random directions to find food and notify everyone else with their so-called “waggle dance” when they do find food?
The urge to optimize delivery routes is such that to find the best routes that can save huge amounts of time, a startup designed an algorithm based on the “bees algorithm,” which describes how bees find the best route to flowers, according to an article published by Fast Company. However, this is not the best way, since calculating the perfect route this way could take days for humans.
Experts at Key Software Systems say that with customers now exposed to an endless choice of products and services, only a courier company that is able to optimize their delivery route efficiently and consistently will be able to achieve cost and quality distinction over their competition.
WAYS TO OPTIMIZE DELIVERY ROUTES
No doubt, a rise in fuel cost raises the budget and brings the profit margins down, as indicated by an article by The Financial Times. Courier companies have two options to better manage their logistics:
- Restructurethe current delivery routes:The aim of restructuring the existing delivery routes is to reducethem to the bare essentials, such that the delivery requires leastnumber of delivery personnel, vehicles in transit and warehousespace.
- Identifythe best possible delivery routes:Every delivery network has some flaws, which increase delivery costsfor businesses, impacting their profits. It is really important forcourier companies to identify the best delivery routes, in terms oftime and distance, so that they can meet all their deadlines, whilesaving on logistics costs.
Instead of choosing one option, companies can make both these solutions run parallel. Delivery route optimization will also streamline inventory. However, certain businesses do need to take into account the need for maintaining the quality of goods in transit, customer demand for quick home delivery, real time reporting as well as tracking uncertainties associated with travel, such as traffic, construction and weather.
When businesses try to optimize routes manually, errors are bound to occur, which can cause further delays.
To achieve seamless and cost-effective delivery route optimization, courier companies are taking advantage of dispatch software that has features like dynamic route optimization, route scheduling and planning, taking into consideration complex variables like vehicle capacity, cargo weight, cost of the order and vehicle location tracking to keep their customers informed about when to expect delivery of their order.
When logistics management is efficient, customers tend to be more satisfied, which only leads to increased sales.