What is route optimization software?
Route optimization software plans the sequence of stops a delivery driver follows to improve the driver’s efficiency and customer service. The software makes these efficient routes for an entire fleet based on the business’s constraints and goals, assisting dispatchers by automating the work of manual planning.
Before route optimization software existed, dispatchers had to create routes with pen, paper, maps, whiteboards, spreadsheets, and their accumulated business knowledge — surprisingly, this remains the status quo at many operations.
While this hand-crank method may work, it is a laborious, complicated, and not so efficient way to build routes. But now much of the route planning work can be automated and performed with higher accuracy by algorithms. For dispatchers and drivers, route optimization software rapidly creates efficient routes, helps manage daily operations, and offers new strategies for running a fleet.
Static Vs Dynamic Routing For Last-Mile Delivery
Most route optimization software supports three primary routing strategies
- Static – routes are planned quarterly or monthly;
- Dynamic – new routes are developed daily;
- Real-time Dynamic – routes adapt during the delivery day based on new orders that flow into the system and changes drivers face on the ground.
No matter the approach a fleet takes, each routing strategy tackles a similar problem at the core. Mathematically speaking, route optimization software solves the Travelling Salesman Problem — famous for its computational difficulty. As an example, if you build a route for ten stops (and only ten stops), there are 3,628,000 combinations. Mind-boggling, right?
Of course, the problem grows more complex the more stops and constraints considered. Routes are usually built while considering orders, drivers, customers, vehicles, depots, and inventory. That’s not all. The list of factors often goes on to include more specific variables like time windows, traffic, service times, weight, and volume.
AI-Powered Route Optimization Software
The more variables, the higher the number of possible route combinations to evaluate. Quickly, the number of solutions becomes astronomically high, and it becomes impossible for even an experienced dispatcher or route planner to create efficient routes relying solely on their best hunches. This is where Wise Systems’ next-gen route optimization software comes in.
Compared to manual processes or outdated routing solutions, a fleet can expect to see significant business improvements after adopting new route optimization software:
- Reductions in late deliveries;
- Improvements in fleet utilization;
- Achieving higher levels of customer service,
- And savings in fuel and mileage costs.
The The Benefits of Automated Fleet Management Software
The benefits don’t stop there. The most recent route planning solutions use machine learning to better understand the components that make up an optimal route and then put this knowledge to use when building future route plans.
Service times, for instance, can be predicted by machine learning and incorporated into future route plans to improve the accuracy of routes. These advancements give fleets continuous improvements in efficiency and customer service, which translates to happier customers and market growth.
Upgrade Your Fleet Management
Request a demo of Wise Systems’ route optimization software to learn how our platform can meet the needs of your entire team, clients, and customers. Click here for more in-depth information on our products.
+ Why Is Route Optimization Important?
Route Optimization provides a large return on investment for fleet dispatchers. Not only do optimized routes decrease fleet miles but they can prevent late arrivals. And with Wise Systems’ platform, we provide updates and notifications for dispatchers, customers, and other parties so that there is clear communication and important parties have real-time ETAs. This can improve client relationships and provide additional value to your customers. Additionally, optimized routes save on gas which is beneficial for both your budget and the environment.
+ How Does Route Optimization Work?
There are a variety of ways to approach route optimization. Even without the benefit of software and automated route planning, dispatchers & drivers have been attempting to optimize routes for decades. But with next-gen technology dispatchers can discover the most cost-effective routes for their team and use data to constantly improve their routes.
+ Should My Business Use Static or Dynamic Routing?
Static routing is fairly common among fleet management. And while it doesn’t provide the best optimization it is what many drivers are used to. Regardless of the strategy you use, Wise Systems’ platform can help. Our routing software can help plan static routes in advance or provide real-time dynamic routing allowing your drivers to adapt to day-of obstacles. In fact, we find that combining zone-based routing with dynamic is an ample way to help your team adjust to optimized routing. By setting geographic zones for your drivers, it is easier for drivers to stay in their comfort zone as they adjust with dynamically optimized routes.
+ Does Your Software Support Zone-Based Routing?
Wise Systems’ platform allows dispatchers and drivers to use a zone-based model. Dynamic routes can take getting used to, and the transition can be difficult to handle overnight. By providing your drivers with geographic zones that they individually cover, optimized routes can help improve efficiency without sacrificing familiarity.
+ What Features Should I Look For In Route Optimization Software?
When it comes to fleet management software you want to make sure it has all of the features you need for your team. Wise Systems’ provides a variety of products that don’t stop at just optimizing routes. Our driver application provides turn-by-turn navigation as well as a variety of helpful tools that can decrease the need for paperwork for your drivers. Additionally our clients can make use of a unique customer portal that can send automated messages to delivery recipients. This portal can help improve communication and is customizable, allowing our clients to add their branded assets to the portal. Features like this provide extra value and functionality to route optimization software, for more information on our product features please contact our team.
How Anheuser-Busch is Improving Day-of Routing with Wise Systems