Updated on July 27th, 2022
Route planning and optimization is one of the prime factors that help in ensuring smooth, safe, and on-time deliveries. Moreover, it also helps in reducing the overall transportation cost, minimize driving time, and maximizing number of deliveries per vehicle. Now, if you are thinking that route optimization is to find the shortest route to the delivery location then you are absolutely wrong.
Route planning and optimization is the process of finding the most efficient route to make sure a vehicle delivers more numbers of orders without increasing the shipping cost. Dynamic route planning is the part of route optimization that is required to be done if the customer changes the delivery time or date. It is also needed when the customer cancels the order at the last moment while it is already out for delivery.
Dynamic route planning is a part of most of the route optimization software and transportation management software. Let’s understand the term using an example. A vehicle carrying ten consignments is heading for the delivery; a customer whose order is scheduled to be delivered on number seven (as per the planned route) cancelled it while the vehicle is at the first customer’s location. As soon as the transportation management system receives the cancellation request, it will show the driver a new route, which will not include visiting that customer’s location. This will not only save time but also fuel cost, driving time, and of course, the efforts of the driver.
Reduces Fuel Cost
Dynamic route planning helps in reducing huge fuel cost as the driver doesn’t have to make an unnecessary visit to a location where the customer is not available. You can imagine how much fuel can be saved if the driver gets to know in advance about the cancelled orders. Moreover, he will also get a new route to deliver other orders.
Prevents Idling of Engines
A transportation management system not only generates a new route in case of cancellation or update in the order delivery, but it also does the same if it finds sudden traffic jams or any other road congestion. Since situations like sudden traffic jams cannot be predicted in advance, dynamic route planning feature prevents getting stuck at a place, and hence, idling of engine and wastage of time.
Reduces Driving Time
Dynamic route planning can minimize the driving time by showing the most efficient routes from the warehouse/hub to the customer’s location. The driver doesn’t have to make a failed attempt for delivery, which would also reduce the rate of return to the origin as most of the third-party logistics companies have a limitation on the delivery attempts.
Improves Route Efficiency
Improving route efficiency is one of the major benefits of dynamic route planning. With a traditional or manual route planning system, you might be able to deliver the products on time; however, it may fail if the customer reschedules delivery or cancel it. The whole process of finding an efficient route for further deliveries might eat up a lot of time and effort. However, with route planning systems that come up with dynamic route planning, new routes can be generated in no time. Using an efficient route, drivers can ensure more deliveries in a day.
For this, you can purchase route planning software, which has the feature for dynamic route planning. Apart from this, you can also purchase an entire transportation management software that not only includes dynamic route planning but also helps you to utilize your vehicles’ capacity completely. You can purchase such software from Shipsy, the leading name in this industry. Shipsy’s TMS software will provide you route optimization, last-mile delivery solution, and end-customer visibility. These features would help you to streamline the entire transportation process and build a strong image for your brand.