What is route optimization? Complete guide
Technology has taken the route optimization to the digital environment in the modern world. Effective route optimization software is one of the main factors that enable online businesses to improve their logistics. Undoubtedly, planning and managing the route is imperative for the success of any online shop nowadays. If you are an online shop owner delivering locally to your customers, it’s essential to increase delivery efficiency. In essence, this is how you can further sustain competition in the market. Here’s why route optimization software saves you hours of work weekly and plays an essential role in your business.
What is route optimization?
Route optimization is the process through which someone or an algorithm determines the most cost-efficient route for the drivers. It’s a more complex process than just finding the shortest path between two points.
Generally, a person responsible for plotting the routes will have a limited view if the task is done through manual work. The process can take anywhere between 20 minutes to a whole working day, depending on the number of stops and the complexity. And time efficiency is important in a digital world, where customers appreciate a fast reaction.
Route planning done by an algorithm is much more scalable. It can include in the plotted route a number of relevant factors, such as time windows for the stops or the service time.
Other factors an algorithm includes are:
- number of turns or intersections along the route
- number of left-hand turns (crossing the line of traffic), as it’s the most dangerous maneuver in traffic
- best driver to assign to the route
- traffic estimate for the day
- left or right-side drop-offs
Why does route optimization software save you hours of weekly work?
Route optimization is usually a process of achieving more with less. In today’s world, fulfilling your customers’ orders consistently well is not a differentiator anymore, but a basic necessity. There is a great number of orders occurring each day and delivering them locally to your customers in a timely manner is crucial.
Optimizing the routes of delivery helps reduce the time each delivery takes, both in the planning and en route. Secondly, it reduces the distance each driver drives every day. Thirdly, it reduces the costs of movement (reducing fuel and resource costs).
One important outcome for businesses is they can deliver more orders during a single trip. All while keeping costs under control. Drivers don’t have to spend any more time idling and searching for the customer’s address, input it into a GPS app and then search a second time for the phone and products. Everything is available at the tips of your fingers.
All of these factors make it imperative for your business to control and have an effective route optimization plan. Not to mention the increased customer satisfaction rate.
What challenges can you solve with route optimization software?
Challenges are easy to beat with the right tools. And even the most demanding challenges a business faces can be solved with the help of Logistia Route Planner.
More efficient delivery staff
There is a constant rise in demand for online ordering and delivery. But owners are experiencing an acute shortage of delivery personnel. Good planning using route optimization helps maximize the number of orders delivered by each person. It ensures more deliveries are done in the same area and in less time by the same person, thus meeting the challenge.
Increased demand
By efficiently using the time of each delivery person, you can accommodate the increased demand for orders. In this case, Logistia shows next to each order the estimated arrival time. This kind of estimation considers the time, current driver position, and traffic data. Also, they will know when they will finish the day and return home.
Because Logistia can send a text or email with a tracking link included to the customers, you will free yourself and your staff from customer inquiries about when the order will arrive at their address.
Increased expenses
With demand and expansion, naturally, the costs increase. In this situation, it becomes necessary to meet customers’ expectations with available resources. Logistia’s route optimization software saves hours of planning and assigning the drivers available in the most efficient way, to cut down costs.
Main benefits of Logistia
Scalability
You will be able to deliver more orders on the same day with more efficient planning.
Minimized efforts
You will be permanently in touch with the health of your online shop. So as an owner, you can manage orders, manage stocks and assign orders to your delivery staff.
ETA calculations
Each one of your delivery staff will know when they’ll arrive at each customer. Also, when their day will be finished is displayed on their screen.
Return on investment
By accommodating more orders for each delivery staff in a more efficient way, your online shop can increase and keep up with competitors. Fast and on-time delivery plays a key factor in customer satisfaction. Without a doubt, this can increase your overall Net Promoter Score.
Create your Logistia account today and start increasing your customer satisfaction.
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