What is Route Optimization Software?

Route optimization technologies are used to plan the sequence of stops for logistics operations, and include traditional, static planning capabilities, as well as real-time and dynamic routing solutions that support on-demand operations. Route optimization uses multiple factors and constraints to calculate the most efficient way to deliver while meeting customer expectations.Factors influencing route plans include:

  • Number of vehicles in the fleet

  • Time windows

  • Vehicle capacity

  • Number of stops on the route

  • Service time per stop

  • Traffic

With the ability to incorporate real-time data, routing software gives drivers and dispatchers visibility into route plans, next-generation route optimization software enables planners and fleet managers to successfully:

  • Improve fleet utilization

  • Reduce truck and labor costs

  • Minimize late deliveries

In addition to planning, route optimization software enables teams to evaluate various scenarios to understand the impact of different fleet management strategies, e.g., reducing vehicles or drivers, or changing vehicle configuration.