Optimising journeys for efficient deliveries
In today’s hustle and bustle, we expect deliveries to be fast, reliable, and cost-effective, no excuses. We’re no longer content with what was the norm, we expect a good deal. Whether you’re waiting on the arrival of your next meal, latest haul or a bulk delivery of products for your business, your options are plenty and therefore delivery companies need to price accordingly. Route optimisation is expected by the customer, but also a necessity for the business in order to stay competitive. Ensuring efficiency and profitability is the only way to keep up.
But what exactly is route optimisation, and how does it help us reduce delivery times and operational costs? Let’s break it down.
What is Route Optimisation?
Route optimisation is the process whereby we determine the most efficient way to complete deliveries. We consider factors such as:
- Scheduled journeys
- Vehicle availability & capacity
- Traffic conditions
- Agreed delivery time windows
- Fuel efficiency
- Number of stops
- Fragility of items and capabilities of vehicles
We choose to use is Stream as our route optimisation software. It uses AI with real-time data to calculate the best route for each delivery considering all the above-listed indicators, helping us save time and money. These benefits can then be passed on to our customers.
How Route Optimisation Reduces our Delivery Times
Avoids Traffic Congestion
Google Maps is great for personal use, but when you’re coordinating multiple drop-offs something more advanced is required. Modern GPS-based route optimisation tools analyse real-time traffic patterns to offer alternative routes, preventing delivery drivers from getting stuck in bottlenecks and scuppering the entire day’s arrival times.
Minimises Unnecessary Stops
Our deliveries are made in a logical sequence, ensuring the shortest possible travel distance between stops. This reduces the necessity to turn back on ourselves while driving.
Improves Last-Mile Delivery Efficiency
‘Last-mile delivery’ as it’s known, is the final stage of the delivery process, where we come in and transport items from our warehouse to the final destination. It is one of the costliest and most time-consuming aspects of the logistics process, especially in urban areas with increased traffic and challenging parking. Being able to optimise our routes allows us to reach doorsteps quicker, boosting customer and client satisfaction.
How Route Optimisation Cuts Costs
Saves Fuel Costs
By streamlining our journeys and reducing unnecessary mileage, we save significantly on fuel expenses, which can be one of our biggest operational costs.
Reduces Labour Costs
With more efficient deliveries, we spend fewer hours on the road, allowing us to spend our time wisely and reduce the need for extra staff.
Extends Vehicle Lifespan
Optimised routes lessen ‘wear and tear’ on our delivery vans, lowering maintenance costs and extending the lifespan of our vehicles.
Did you know…
Small businesses that adopt route optimisation software claim to have a 20-30% reduction in fuel and labour costs.
Final Thoughts
The end goal is to get items to customers in a time and cost-efficient manner, delivering smarter, not harder. Having implemented our optimised route planning systems, we’ve increased customer satisfaction (both clients and end-of-line customers), reduced our operational costs, and improved delivery efficiency.
It’s allowed us to scale up for clients, delivering further and wider, expanding our national coverage. If you’d like to know more about how we could impact the profitability and efficiency of your business, get in touch on 01603 408143.
