Logistics is widely recognized as the most complex business process and one that is cost intensive and time consuming.
Global logistics costs surged from $6.92 billion in 2010 to $9.3 trillion in 2019.
Logistics planning has become increasingly difficult with:
- Growing numbers of customers
- Rising customer expectations for faster delivery
- Clients demanding more transparency
- More geographical locations to be covered
- Uncertainty of future orders
- Stiffening pressure from competition
Rise in Freight Costs Between March 2020 and March 2021
Van Load to Truck
Flatbed Load to Truck
Reefer Load to Truck
Route planning forms a major part of logistics planning. The route optimization software market size is expected to:
- Grow from $2.95 billion in 2018 to $5.07 billion by 2023
- Expand at a CAGR of 11.4% between 2018 and 2023
Route Optimization Saves Money
Companies can save a significant amount of money with route optimization. by reducing the number of vehicles and drivers needed, achieving decreasing fuel usage, and reducing vehicle maintenance costs. Companies often times make the mistake of focusing on the shortest route, but with trusted route optimization software, drivers are equipped with, multiple options within seconds to suggest the fastest, safest, and most fuel-efficient route.
With Route optimization, customers can save on fuel costs and time:
Every American driver spends an average 16+ minutes a day idling, collectively burning 3.8 million gallons of gas every day.
- Commercial trucking companies incur traffic congestion costs of $27 billion annually in lost time and fuel.
Route Optimization Saves Time
Route optimization saves time in mapping the best route for every vehicle and every driver. With real-time updates on weather, traffic, and the location of each vehicle, as well as the ability to directly contact the driver which can help prevent unnecessary delays. Route optimization also saves time and cost of reverse logistics.
Save these costs with route optimization:
- American drivers spend an estimated 6.9 billion hours stuck in traffic every year. That’s 5 days per year for every driver.
- Cost of weather-related delays ranges from $2.2 billion to $3.5 billion annually.
Route Optimization Increases Efficiency
Route optimization can reduce the turnaround time of fulfilling each order and increase the number of orders fulfilled in a single trip. It also prevents unfulfilled deliveries by checking for errors in addresses and the unavailability of the customer.
Benefit from these with route optimization:
- With proper route optimization, a business can increase order capacity by as much as 100% without adding any vehicles to its fleet.
- Route optimization software uses historical traffic data, collected from various navigation systems and millions of mobile phones, to suggest the most efficient route.
Route Optimization Increases Customer Satisfaction
Customers today have become even more discerning. They not only demand next-day or same-day deliveries, but they also want the flexibility to choose their preferred time slots for delivery. A route optimization solution ensures that all of deliveries are made on time per the customer’s instructions, while keeping the customer continuously informed about the ETA.
Avoid losing customers with route optimization:
- 40% shoppers decide against making a purchase if the delivery takes more than two days.
- 51% consumers want real-time visibility into the status of their orders.
Save Millions of Minutes, Miles, & Money
With a powerful route optimization solution, savings in costs and time can be realized (your company has the potential to drive revenue all while decreasing time spent and boosting productivity. A strong solution also reduces the costs associated with regulatory compliance. Stay ahead of the expanding competition and build a stronger brand with the best route optimization solution.