October 8, 2020 admin

How Route Planning and Optimization Helps in Reducing Costs?

Logistics form the core of your business. Managing inventory, keeping stock of goods and ensuring that deliveries are handled safely and carefully is the only key to success for your business. No amount of marketing or hype can replace the ripple effects of a robust logistics network. With solutions like simpleship, and its Route Planning and Optimization your work becomes easier while your clients can’t help but write positive testimonials for your service.

The backbone of a business

As a business owner, your focus should be directed towards three important tasks- logistics, accounting and marketing. Of these logistics are the backbone of your business which run on efficient route planning and optimization. As the number of deliveries are increasing, the number of vehicles constantly moving through your shipment locations also increases.

Maintaining an updated inventory can help in keeping your deliveries smooth and your customers satisfied. However, that will need effective schedule planning. Your route needs to be planned in such a way that the preferred slot times of all customers can be fulfilled. This demands source to last-mile delivery planning via multiple vehicles and delivery personnel.

Route planning and optimization will work only when delivery addresses are properly located and identified. This helps in reducing costs and increasing delivery efficiency with zero to minimal delays.

Creating optimized routes and delivery locations

When focusing on last-mile deliveries, it is advisable to focus on the preferences or local areas of delivery personnel and allowing them to deliver in neighborhoods they know best. This reduces initial hiccups while delivering and makes deliveries faster too. The same principle can be applied to drivers of your logistics fleets who can choose to go to locations they understand better. Being familiar with alternate routes and laws of a certain county or state is always more useful in physical deliveries.

Managers can work on demand clustering ideas at various delivery stations and interconnecting shipment centers to ensure that the most optimum route is utilized for making deliveries. A delivery person’s idle time and capacity should be factored in ensure timely dispatches.

Focusing on the hidden factors

Even after repeated attempts to optimize deliveries and work with well-planned ETAs (Estimated Time of Arrival), several logistics and delivery plans go wrong. This is because they don’t take hidden factors like traffic jams, accidents, road blocks due to repair etc. into account. There is no dearth of customers who receive late deliveries just because the delivery personnel were stuck in traffic.

This is why working with specialized delivery management software is important. It helps you in ensuring that delivery fleets and personnel are on the right track. It can provide alternate routes depending on traffic conditions. With real-time tracking, timely alerts and dynamic route optimization facilities, a good logistics software can solve all your delivery troubles easily.

Doing this can help you-

  • Reduce delivery time
  • Reduce delivery cost
  • Increase the numbers of orders fulfilled
  • Avoid most common factors leading to delays like traffic jams

These small benefits can add up to thousands or even millions of dollars in savings for your company, improving your profits and leave more cash to reinvest in your business.

 

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