How Route Optimization Software Reshapes the Logistics Industry

Doorstep delivery of packages has become synonymous with the rise of eCommerce businesses. The idea of shopping from your smartphones is no longer something a few people do and has become a part of our daily lives.

With the growth of the eCommerce sector comes added pressure on the logistics industry. While the logistics side of a business is filled with many challenges, finding shortest routes and optimizing them for reduced last mile delivery costs remains on top of the list.

While logistics businesses used tree search algorithms to deal with the route planning in the past, the approach isn’t as effective as it used to be. Heuristics generated a particular output based on a series of inputs and there was no self-learning programming in the ongoing process.

But as we move towards AI-powered route optimization tools, we can see deep learning neural networks merge with the existing programs to provide real-time route optimization for delivery partners and logistics companies.

What is a Route Planning Software?

In broad terms, a route planning software, a.k.a. route optimization software is a tool used to find the most cost efficient route for delivery runs. It computes several ‘what-if’ scenarios and incorporates logistical considerations like traffic congestion, vehicle availability, rider distance and more to find out the best possible route.

Platforms use AI-based route optimization capabilities to make the last mile delivery easier and cost efficient for your businesses. If done correctly, a route optimization software can help you save around 20% in mileage and increase your fleet’s order capacity by 100% without adding any additional resources to the team.

How Route Optimization Software Reshape the Logistics Industry

In the following lines we will take a look at ways in which route planning and optimization is helping companies transform the logistics arm of their business. Let’s get started:

1. Automate and Manage Operations Easily:

When delivery partners go out in the field, it is often difficult to stay on top of plans. There are several factors that can affect a delivery run. Route optimization software automates delivery operations like dispatch, order assignment and GPS tracking for delivery partners.

You can get real-time updates about their movement in the field, generate accurate ETAs, anticipate delays in deliveries, communicate with the delivery partners and inform customers of any delays.

2. Increase Your Revenue:

How can route planning software help you in increasing your revenue? Let’s find out. Modern-day customers are always looking for convenient ways to get their orders delivered.

They are even willing to pay more for faster delivery and you can capitalize on this opportunity to generate more revenue for your business. Automation is the key to creating a smoother on-demand delivery process and it is doable by using a cloud-based route planning and delivery management software.

You can fulfill orders at a faster rate, increase customer satisfaction and encourage customers to make repeat purchases, thus adding more value to your business.

3. Improve Shipping and Delivery Accuracy:

Maintaining accuracy is a major concern for logistics businesses. While sharing the tracking information with the customers to verify their information takes care of a few concerns, it doesn’t necessarily make things easier for the delivery partners.

Until your delivery staff is in the loop, they cannot verify information during the entirety of the delivery process. A route planning and delivery management software helps you get over these hurdles and maintain transparency once the delivery process is executed.

4. Ensure Timely Delivery of Orders:

Delivering an order on time is the biggest commitment you can make to your customers and if you are not able to stay true to your promises then you are likely to lose them forever.

Many logistics companies use a route optimization software to maintain their punctuality and promise delivery times based on the ETAs generated by the software. You need to automate this process if you want to get accurate delivery timelines based on a number of factors such as:

Scheduled day of the week
Specific time for the delivery of order
Time of the year as your teams might be slower during festive seasons or shopping rush sales
Vehicle speed
Traffic congestion, shutdowns or ongoing road works

5. Locate Delivery Partners Instantly:

Without a delivery management system, it is easy to lose track of your drivers once they are in the field. You no longer have to rely on dispatchers to keep track of your delivery partners as a route optimization tool allows you to pin-point their location using an in-built GPS.

It collects their data and sends you updates on their location in real-time. In addition to that, it also allows you to do the following:

Create electronic proof of delivery (via signatures, pictures and bar code scans)
Create and share ETAs with the customer
Compare the actual time of arrival with the planned one
Locate a vehicle at any time
Keep a log of arrival and departure times of the delivery partners

6. Manage Reverse Logistics With Ease:
Amazon spends millions of dollars every year on reverse logistics and it has helped them become the absolute goliath in the eCommerce industry.

Managing deliveries is an active process but even with your best efforts, things can go beyond your control. Drivers can deliver an order at the wrong location or miss the scheduled time of delivery.

There are several reasons why customers return deliveries, but if you wish to be a leading business, you must be equipped to deal with such situations. Thanks to the GPS tracking and route optimization software, you can gain complete visibility over the last mile delivery operations.

A route optimization software allows you to assign the pick-up for reverse logistics to the nearest delivery partner and they accommodate the job in their schedule easily.

In case of damaged goods, you can also pick-up replacement requests and have the driver drop-off the package at the nearest warehouse.

7. Provide Same-Day Delivery to Your Customers:

Delivering goods on the same day requires two things: speed and convenience. Customers don’t mind paying extra for it, but that doesn’t mean it is a simple process.

A delivery management software allows you to plan same-day deliveries on the go and incorporates them into the schedule of your team in the field or assigns the order as a priority delivery to the drivers available near the pick-up location.

8. Improves Customer Satisfaction:

While bad experiences send customers away from a brand, good experiences motivate them to stay and shop again. It is crucial to deliver positive experiences to your customers every time if you want to stay ahead of the competition.

The best way to do it is deliver the orders in a timely manner, provide excellent customer service and create a culture that aims at maintaining the quality of your operations.

Wrapping Up

In a nutshell, companies need to increase their delivery frequencies without sacrificing quality. It is possible to eliminate errors that occur due to manual route planning with the help of a route optimization software.

It also reduces reliance on manual labor and you can find the most efficient routes based on factors like route length, traffic situations and service times to deliver accurate ETAs to your customers.

Experience reduced transportation costs and utilize your resources efficiently to create a seamless delivery experience. You can meet your customer expectations better with a route optimization software and establish a differentiation point for your brand.