Next-generation routing and dispatching software, which gathers and uses your fleet’s own data for continuous improvements over time, can drive significant efficiency and savings. 

These modern, cloud-based systems automate dispatching and routing operations, integrate seamlessly with your existing technology stack, and create opportunities to leverage new strategies to support your growing last-mile operations, including static, dynamic and static + dynamic routing. . 

Download this paper for an overview of three core routing options and the business goals they support.

• Static Routing — driven by semi-annual or annual route plans in defined geographic areas — built around forecasted orders — and designed to maximize customer service
• Dynamic Routing — driven by daily-built route plans — created around both daily and forecasted orders — and designed for efficiency, customer service, and utilization
• Real-time Dynamic Routing — daily-built route plans designed to efficiently deliver pre-orders and real-time orders within each customer’s expected time window

New Transportation Environment, New Efficiency Opportunities
The world has accelerated, and transportation operations feel the pressure – particularly for last-mile fleets across all industries. Changing retail landscapes, booming e-commerce, heightened customer expectations, and driver shortages are only a few of the factors forcing fleets to rethink their operations. 

To compete in this environment, last-mile fleet operators are recognizing the strategic value of advanced route optimization technology to deliver new levels of efficiency, agility, and speed. Their goals are to outperform competition and surpass customer expectations, which requires next-generation solutions that automate delivery operations and support everyone in the process. 

To ensure that logistics professionals deploy the technology that best fits their needs, they need to choose a software platform that best supports their operations — today and in the years ahead. 

Solving the Vehicle Routing Problem 

The ‘vehicle routing problem’ — related to the ‘traveling salesman problem’ — is the academic term describing the creation of delivery routes for a number of drivers and customers under various constraints. On the surface, the problem appears straightforward, but as more routes are created for more drivers and stops, the challenge becomes exponentially more challenging — making it impossible for humans to solve optimally without the aid of computational support. 

Route optimization software (or routing software) uses algorithms, computing power, and data to solve the vehicle routing problem. The software provides the best possible route sequences, given known constraints and goals (e.g., delivering inside of customer time windows, decreasing miles driven, or distributing work evenly across drivers). 

Next-generation routing software, which gathers and uses your fleet’s own data and uses cloud and mobile infrastructure, can drive significant efficiency and savings. But understanding current and future routing strategies is critical to selecting the technology that best supports your fleet goals. 

There are three core routing strategies: Each supports different business goals and provides differing levels of efficiency. Many organizations use a blend of different routing strategies to achieve their goals (e.g., a mix of static routing and dynamic routing, or dynamic routing with additional real-time dynamic routing). Fleets currently focusing on one strategy may discover that a shift in strategies will take them farther while still using existing resources.

Implementing a next-generation routing solution unlocks both near- and long-term opportunities — from improved utilization and efficiency to cost savings and customer service enhancements. Choosing a platform that meets your business needs is an investment that promises to deliver results for years to come. The path to routing transformation often starts with incremental steps — moving from manual route building to static route creation, or adding in-route optimization to previously static routes. But the savviest fleet managers are looking to next-generation routing solutions that position their fleets for the rapidly changing delivery environment and future success. Teams implementing next-generation routing are positioned to: 

• Reduce late deliveries 
• Provide same-day delivery 
• Exceed customers’ delivery expectations 
• Meet service level agreements 
• Complete more deliveries each day 
• Reduce fleet mileage 
• Reduce their carbon footprint Improve fleet utilization 
• Reduce the number of drivers and vehicles on the road 
• Save driver time spent waiting Free up dispatchers to focus on strategic work with more business impact 
• Create fleet capacity to accommodate more business 
• Leverage data to continuously improve fleet performance

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