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.