And How to Fix the Three Biggest Barriers in Last-Mile Distribution

Rerouting sounds simple on paper.

1. Pull the data
2. Optimize the routes
3. Implement the plan

But anyone who has been through a real reroute knows it rarely works that cleanly.

• Weeks of analysis turn into month
• Excel files multiply
• Teams debate service times
• And when a plan finally emerges, activating it inside the ERP becomes its own challenge

The result is that many distributors delay reroutes far longer than they should — even when route inefficiencies are obvious. Only 30% of our prospective Strategic Planner clients tell us they do seasonal reroutes.

The reality is rerouting isn’t hard because it’s complicated. It’s hard because it’s cross-functional.

Successful reroutes require coordination between operations, sales, IT, and leadership. When those groups aren’t aligned, even the best route optimization model can stall.

And in most cases, the barriers fall into three predictable categories.

Barrier 1: Data Aggregation Chaos

Every reroute starts with data. And for many distributors, that’s where the first bottleneck appears. Route modeling requires pulling information from multiple systems:

• ERP order history
• Customer master data
• Delivery schedules
• Sales territory assignments
• Service frequency rules

In theory, all of this data exists. In practice, it often lives in separate exports, spreadsheets, and tribal knowledge spread across departments.

• Operations might maintain routing assumptions
• Sales teams know the nuances of specific accounts
• Finance may have profitability data tied to customers.

Before route optimization can even begin, someone has to stitch all of that together. That’s where the Excel gymnastics start. The challenge isn’t that the data is bad. It’s that distribution data is contextual and nuanced.

A store might technically receive two deliveries per week — but everyone knows one of those stops is optional. A service window might say 8–12, but drivers know the store doesn’t open the back door until 9:30.

These operational realities matter. Without them, route models can produce results that look perfect in theory but break down in the field. The key isn’t chasing perfect data. It’s building a process where operations supervisors help validate assumptions early.

Because the people closest to the routes usually understand the nuances the data alone can’t show.

Barrier 2: The Service Time Problem

If there’s one variable that consistently breaks routing models, it’s service time accuracy. Every delivery stop includes more than just driving time.

Drivers have to:

• Park and access the delivery area
• Check in with store staff
• Unload product
• Rotate inventory
• Manage paperwork or scanning
• Navigate store layouts

These activities vary dramatically by account type.

A convenience store delivery might take ten minutes. A grocery store drop with multiple pallets could take forty-five. But many distributors rely on default service time assumptions rather than actual data.

When service times are inaccurate, routing models become lossy — meaning the optimized routes don’t reflect real-world capacity.

The result is:

• Drivers run behind schedule
• Routes exceed planned hours
• And confidence in the reroute erodes quickly

Some distributors are beginning to address this by collecting actual service-time data from telematics, mobile apps, or driver logs. Even directional improvements in service time accuracy can dramatically improve routing outcomes. Because in last-mile distribution, a few minutes per stop scales quickly across hundreds of stops per week.

Barrier 3: Activation Logistics

Even when a reroute is well designed, the hardest part is often activating it. Turning a route model into real operational change requires careful sequencing.

• Customer delivery days may change
• Sales territories may shift
• Drivers may need new route training
• ERP routing tables must be updated

If these steps aren’t coordinated properly, disruptions can occur quickly. One of the biggest risks during reroute transitions is creating temporary service gaps. For example, if delivery days shift without proper planning, some accounts could experience six to eight weeks between deliveries during the transition. Operationally, that’s unacceptable.

Retailers depend on consistent service windows, and sudden disruptions can damage relationships. This is why successful reroutes rarely happen in isolation.

They require collaboration between:

• Routing analysts
• Operations leadership
• Sales managers
• Customer service teams
• IT or ERP administrators

When those groups coordinate early, activation becomes manageable. When they don’t, even strong route designs can stall.

Why Reroutes Shouldn’t Be One-Person Projects

One of the biggest misconceptions about routing projects is that they can be handled by a single analyst or operations manager. In reality, rerouting touches nearly every part of a distribution organization.

• Operations understands route realities
• Sales understands account relationships
• IT manages system configuration
• Leadership aligns the strategy.

Without that collaboration, rerouting becomes slow and frustrating.But when those perspectives come together, the process becomes much smoother — and the results are significantly stronger.

Perfection Isn’t the Goal

Another common challenge is the belief that a reroute needs to be perfect before it launches. In reality, most distributors already have a large portion of their routing structure working well. Often, 50% or more of existing routes are already close to optimal. The goal isn’t to rebuild the network from scratch. It’s to identify where inefficiencies exist and make targeted improvements that increase route density, reduce drive time, and balance workload across drivers. When teams focus on progress instead of perfection, reroutes become much easier to execute.

The Strategic Value of Rerouting

As margins tighten and delivery costs rise, route efficiency becomes increasingly important. Every improvement in routing can impact:

• Labor utilization
• Truck capacity
• Fuel consumption
• Driver hours
• Delivery reliability

But those improvements only happen when organizations approach rerouting as a coordinated operational initiative, not just a modeling exercise. Because at its core, routing isn’t just about math. It’s about execution.

Final Thought

Rerouting isn’t difficult because the math is complex. It’s difficult because it touches every part of a distribution operation. The distributors who succeed with reroutes are the ones who recognize that early — bringing together operations, sales, and technology to build plans that actually work in the field. Because the best routing strategy isn’t just optimized. It’s executable.

C2A: Watch the Darin webinar where we talk about this more