route_planning_software_benefits

5 Ways Route Planning Software Can Help Your Business Save Money

Despite managing inventories and warehouses effectively, businesses often struggle with completing deliveries on time. Manually planning and scheduling routes have several shortcomings that ultimately delay deliveries and hamper customer experience.

Route planning software seeks to overcome these shortcomings by minimizing the time spent on the road. Delivery businesses get more realistic delivery estimates by considering real-life constraints like order priority, volume, weather, traffic, etc.

Here’s something interesting that might catch your attention! The route optimization software market is expected to grow at a CAGR of 11.4% during the forecast period ending 2023 (1). This indicates that there is an increased demand for route planning as businesses come to understand the importance of optimizing delivery routes.

In the following post, we take a look at what route optimization software entails and how it can help your business save money.

Top Challenges Route Planning Software Can Help You Overcome

Manual route planning has its own set of challenges that fleet managers frequently run into when scheduling deliveries. Here are some factors managers and operators need to consider when planning routes manually.

  • Changing customer demands: Technological advancements have changed customer expectations drastically. Shoppers now expect faster deliveries and even opt for express deliveries for essential orders. Keeping up with changing customer demands can be challenging with slower delivery routes.
  • Traffic conditions: Manual delivery planning often ignore real-time traffic conditions when scheduling routes. While traffic conditions can be unpredictable at times, predictable congestion should be considered when charting delivery routes.
  • Service routines: Vehicles in a fleet undergo regular servicing for optimal performance. The service times, however, can vary vastly depending on multiple factors. Unpredictable service routines often interfere with fleet uptime as some vehicles have to compensate for others.

Route planning software accounts for historical data from various touchpoints and uses artificial intelligence to adjust routes as necessary. Fleet management solutions from AllRide Apps also account for the type of delivery to provide accurate ETAs to the customers, further improving customer satisfaction.

How Route Planning Software Can Help Your Business

Manual route planning is time-consuming and subject to human errors. Route optimization software uses advanced algorithms to provide not the shortest but the most cost-efficient route. Some software solutions also offer advanced features like real-time notifications, traffic alerts, rerouting, etc.

Now, we take a look at how route planning software can help your business save money.

1. Reduce transportation costs

Subjecting fleet vehicles to unnecessary wear and tear is expensive. The less time they spend on the road, the less fuel consumption and maintenance costs. Planning routes carefully around real-life constraints decrease the overall driving time, meaning the fleet is utilized only when necessary.

Additionally, software route planning is quicker and allows re-routing for obstacles, which decreases vehicle idle time. Drivers can complete deliveries quicker, and you will save money in the long run and extend your vehicle lifespan.

2. Boost fleet productivity

Planning efficient routes boost the First Attempt Delivery Rate (FADR), which is the number of successful first-attempt deliveries. Essentially, your fleet will complete more deliveries per day in the shortest amount of time, utilizing the least resources.

Better fleet productivity, in the long run, decreases maintenance costs. It also allows you to focus on the core aspect of your business instead of repetitive and redundant tasks. Route optimization eliminates unnecessary expenses in last-mile delivery, further helping you save money.

3. Reduce the risk of accidents

When on the road, consignment safety lies in the hands of the driver. Unfamiliar territories and uncertain routes put an unnecessary amount of stress on the driver, which can lead to mishaps on the road. If you plan routes manually without accounting for roadblocks, traffic congestion, etc., you increase the risk of accidents.

Route planning software accounts for these constraints and offers routes with the least stoppages. Drivers can complete deliveries uninterrupted and easily communicate their status with the fleet operator. Some route optimization software also provides turn-by-turn navigations and digital proof of delivery, further reducing the stress on the driver.

4. Improve driver safety and satisfaction

Every delivery business needs to focus on reducing the stress on the drivers, as iterated in the point above. Poor route planning at the organizational level can lead to drivers planning their own routes, which increases the work they have to do and hampers job satisfaction. Without proper oversight, they may end up choosing risky routes to complete more deliveries.

Effective route planning using software solutions enables smoother operations and better resource utilization. Job satisfaction and lower stress boost driver loyalty and productivity. For drivers that are paid per delivery, optimized routes mean more completed deliveries and, therefore, more payment.

5. Boost customer satisfaction

Most importantly, route optimization boosts customer satisfaction. Without proper route planning, delayed deliveries can lead to your business losing customers and partners. Route planning using software solutions enables faster delivery times, higher FADRs, and, therefore, better customer experience.

Boosting customer satisfaction significantly improves customer loyalty and helps you gain a competitive edge in the market. Offering prompt deliveries also attracts new customers and helps you grow your business to new heights.

Get Route Planning Software For Your Delivery Business Today!

Adopting route planning software spells multiple benefits for your business. It reduces the total time spent on the road, improves on-time delivery rates, and boosts overall driver and fleet productivity. Integrating advanced algorithms optimized with real-time data allows businesses to choose the most efficient routes and significantly save fleet expenses.

Steve Smith

Logistic Management Company