Dynamic route planning, also known as ‘dynamic routing’ is the key to meeting customers’ increasing appetite for responsive, on-demand deliveries. In contrast to static routing, where plans are created ahead of time with a fixed sequence, dynamic routing automatically builds and updates delivery schedules, enabling fleets to meet customers’ needs. Many fleet operators move from static routing to dynamic routing, often creating a hybrid ‘static/dynamic’ planning system in the interim.
Dynamic routing is a well recognized strategy for efficient fleet management. According to a June 2016 white paper, Technological Disruption and Innovation in Last-Mile Delivery published by the Stanford Value Chain Innovation Initiative, “Dynamic routing also enables greater flexibility and helps delivery providers better respond to customers’ requests, such as a change in the scheduled delivery time. By informing drivers in real time regarding changes in the route, and by using innovations such as geofences to inform customers of a delivery, the delivery process becomes much more efficient and flexible.”