7 Route Planning Benefits using Route Planning Software

Arya Bharti

7 Route Planning Benefits using Route Planning Software

In the intricate world of logistics, where timely deliveries and cost-efficiency are paramount, route planning emerges as a critical challenge that can significantly impact the bottom line.

Navigating the complex web of roads, traffic, and ever-changing variables can be a Herculean task for fleet managers and drivers alike. This is where Route Planning & Optimization Software steps in as the ultimate problem-solver.

Route Planning benefits transportation efficiency, and improves driver and consignment safety, and job satisfaction among the delivery staff.

It optimizes delivery routes to minimize travel time, fuel consumption, and vehicle wear and tear, leading to cost savings for both drivers and organizations. 

Smart Route Planning Software offers real-time traffic updates and comes with GPS integrations, which help drivers navigate congested areas, reducing stress and enhancing on-time deliveries.

It can generate alternate efficient routes in real-time for unexpected and urgent situations, such as traffic jams, accidents, order cancellations, etc. 

Let’s examine the challenges of routing in logistics and explore the various ways an advanced route planning software can help fleet drivers navigate these challenges while improving operational efficiency at the same time. 

What is Route Planning

Route planning is the process of planning and optimizing delivery process or transportation routes using cutting-edge software and technologies, such as AI and ML.

It goes beyond traditional route planning by considering multiple variables such as real-time traffic data, vehicle capacity, delivery schedules, and more to determine cost-effective and the most efficient routes for fleet drivers.

Route Planning & Optimization software comes with multiple in-built functionalities, such as vehicle capacity optimization to maximize deliveries per vehicle per trip, automated driver allocation, and trip creation for highly efficient delivery process. 

These features offer several Route Planning benefits for delivery drivers, such as a significant reduction in travel time and fuel consumption, real-time traffic updates, improved driver safety, and more.

The route planning software also suggest delivery routes that comply with speed limits and traffic regulations, reducing the risk of accidents and violations. It also provides drivers with real-time updates and mobile accessibility for better communication and decision-making on the road.

7 Excellent Route Planning Benefits That Can Transform Fleet Operations

Key Benefits of Route Planning

#1 Automatic Driver and Trip Allocation

The Route Optimization Software helps in efficient route planning via in-built intelligent algorithms that pair the right riders with each order, taking into account a myriad of rules.

This includes factors like prioritizing dedicated fleets over freelance riders, and seamlessly coordinating with floating fleets.

Each order allocation considers customized routing constraints that businesses can set and configure as needed.

This results in highly efficient and cost-effective pairings of orders and riders, ultimately reducing delivery expenses and effort in planning routes.

#2 Optimized Vehicle Routing

The shortest routes from origin to destination may not always be the most optimized delivery routes. This is due to constraints such as delivery area restrictions, order specifications, vehicle types, rider categories, and more.

The advanced Route Optimization Software empowers businesses to adhere to these constraints alongside other critical factors like road disruptions and multiple delivery stops.

They can easily consolidate multiple orders en route and devise alternative delivery routes in the event of roadblocks or detours.

#3 Increased Driver and Vehicle Utilization

AI-powered dynamic route planning software solutions are equipped with intelligent algorithms designed to enhance asset and resource utilization.

These systems aid managers in mapping shipments with suitable vehicles based on various characteristics, such as load type, consignment dimensions, vehicle specifications, geographic location, and local regulations.

Fleet managers can efficiently manage deliveries for Full Truck Load (FTL) or Part Truck Load (PTL) shipments, reduce vehicle maintenance costs through enhanced order consolidation, and lower delivery expenses via real-time shipment tracking.

#4 Higher Customer Satisfaction

Advanced delivery route planning systems, such as Shipsy, provide real-time updates and alerts pertaining to order movements, order tracking, driver details, and delivery Estimated Time of Arrival (ETA). 

This proactive approach reduces customer inquiries, keeps customers informed about the latest shipment updates, and boosts the rate of successful first-attempt deliveries, resulting in an enhanced customer satisfaction.

#5 Reduced Transportation Costs

Route Optimization reduces the total distance traveled and offers flexibility to the riders to navigate real-time obstacles like road closures and traffic congestion.

This adaptive routing ensures a higher degree of adherence to Service Level Agreements (SLAs) without compromising the customized optimization criteria defined by managers, ultimately keeping delivery costs in check.

Moreover, AI and Machine Learning (ML) algorithms reduce transportation costs by reducing the overall mileage by optimizing trip frequency, maximizing vehicle capacity utilization, and mitigating delivery failures.

#6 Data Analytics and Reporting

Advanced data analytics and reporting capabilities empower businesses to extract actionable insights from organizational and field operations data.

These solutions facilitate data analysis in a user-friendly, no-code format, allowing for the creation of easily digestible reports enriched with data visualizations.

As a result, businesses can assess the individual performance of riders and logistics partners, enabling data-driven decision-making for more strategic and informed choices.

#7 Unified Management

Delivery Route Optimization software offers integrated dashboard-based operations management.

Businesses gain a comprehensive view of all logistical components related to orders, deliveries, and logistics partners within a single platform. Essential delivery metrics, such as on-time order completions, delivery delays, top-performing riders in terms of timeliness, and more, are readily accessible.

Disadvantages of Manual Route Planning 

Disadvantages of Manual Route Planning

#1 Overreliance on Manual Processes

Traditional route planning methods heavily rely on manual efforts. Route planners invest significant time in manually charting out delivery routes using physical maps.

However, manual planning of routes is prone to inaccuracies as it often overlooks critical factors like service times, route distances, customer delivery preferences, and traffic conditions. The accuracy of these plans deteriorates further when faced with growing delivery/transportation demands.

This inaccuracy directly impacts last-mile logistics, causing drivers to struggle with on-time deliveries. Further, businesses are unable to provide flexible delivery schedules.

Consequently, customers may face subpar service, and logistics costs can escalate due to multiple delivery attempts to rectify missed deliveries.

#2 – Lack of Real-Time Tracking

Traditional route planning lacks real-time visibility into shipment locations and statuses. This leaves businesses uninformed about the exact whereabouts of their deliveries, hindering their ability to respond promptly to incidents like accidents, traffic congestion, or unforeseen obstacles.

It also complicates efforts to verify the reasons for delivery delays or failures provided by delivery drivers. This absence of real-time visibility results in poor customer satisfaction, increased operational costs, and potential business losses due to inaccurate delivery status updates.

#3 – High Operational Expenses

Traditional delivery route planning often disregards crucial factors such as traffic conditions, vehicle capacity, driver familiarity with the area, and language proficiency.

This makes it challenging for businesses to efficiently allocate drivers or vehicles, especially when dealing with increased workloads. Consequently, this inefficiency leads to higher operational and vehicle maintenance costs for fleet managers.

In contrast, businesses utilizing delivery route planning software can consider all these factors to generate highly efficient routes, reducing mileage and delivery expenses.

#4 – Inefficient Resource Utilization

Manual route planning lacks access to analytical data and real-time updates. Consequently, they may randomly assign last-minute orders to new drivers instead of allocating them to drivers already serving the same area, resulting in multiple drivers operating within the same region.

Moreover, they struggle to efficiently assess factors like vehicle capacity and driver availability during the route planning process.

This inefficiency leads to underutilization of resources while planning delivery routes, ultimately contributing to increased overall logistics expenses.

#5 – ETA SLA Violations

Manual routing not only lacks efficiency but also fails to account for real-time dynamic events such as traffic congestion, order consolidation, multi-stop deliveries, and route optimization.

These limitations result in extended delivery times, challenges in scaling order deliveries, and breaches of Estimated Time of Arrival (ETA), Service Level Agreements (SLAs), etc.

As customers cannot access proactive real-time insights into order movements and reschedule their deliveries, the risk of delivery failure rises, forcing businesses into costly re-attempts to fulfill deliveries.

Supercharge Your Logistics with AI-Powered Route Planning Software

Shipsy’s comprehensive AI-driven Delivery Route Planning & Optimization Software provides a holistic solution for all your efficient route planning and driver management requirements.

It empowers businesses to efficiently optimize routes, vehicle capacity, implement intelligent route planning, oversee fleet movements, enhance last-mile operations, and effortlessly track all shipments through a unified dashboard. 

Further, the route planning solution seamlessly integrates with third party logistics providers and existing tech infrastructure, such as Order Management Systems (OMS) and Warehouse Management Systems (WMS), providing holistic operational management through a unified dashboard.

With its robust customization options and end-to-end logistics management capabilities, Shipsy helps businesses unlock:

To gain a deeper understanding of Shipsy’s capabilities and to catch the product in action, please get in touch with our experts and schedule a personalized, complimentary demo today!

Frequently Asked Questions

What is the function of route planning?

Route planning optimizes the sequence for visiting multiple locations, such as delivery stops or service calls. It minimizes travel time, fuel costs, and resource allocation, enhancing efficiency in logistics and field service operations.

What is effective route planning?

Effective or efficient route planning involves creating the most efficient delivery routes to visit multiple destinations. It considers factors like distance, traffic, and priorities to save money, time, fuel, and resources to create optimized routes.


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