How does Route Optimization Software Help in Reducing Overall Delivery Cost?

With same-day and next-day deliveries becoming the next big thing in the supply chain and logistics industry, speeding up processes like order segregation, order allocation, route optimization, and others is no longer a choice. And to achieve this goal, businesses are relying on automation

Route Planning Software

With same-day and next-day deliveries becoming the next big thing in the supply chain and logistics industry, speeding up processes like order segregation, order allocation, route optimization, and others is no longer a choice. And to achieve this goal, businesses are relying on automation extended by logistics management and route planning software. Such software digitizes these processes and eliminates the need of human resources to accomplish a task. In this article, we are going to talk about route planning and optimization software and how it helps in reducing the cost of deliveries. 

What is route optimization?

Route planning and optimization is the optimization of routes in a way to ensure timely and cost-controlled movement/transportation of goods from one place to another. This transportation may be from a manufacturing facility/manufacturer to warehouse, one warehouse to another warehouse, hub to customers’ location. The process, when done using route planning software, can yield great results by ensuring on-time deliveries without compromising with the cost. 

How can you reduce overall delivery costs with route planning software?

As aforementioned, route management software or route optimization software design delivery routes in a way to make riders deliver every order on the given time. For this process, the software considers a plethora of factors, including- 

  • Delivery location
  • Number of stops to deliver multiple orders
  • Delivery time window
  • Traffic conditions
  • Weather conditions
  • Road restrictions
  • Route history

Considering all these factors and then designing a delivery route manually is not a feasible task. Automated route planning and optimization results in the reduction of the following costs- 

Vehicle maintenance cost

Following delivery routes with heavy traffic or poor condition might cause wear and tear to your vehicle. You would have to invest in your vehicle’s maintenance more often. Route planning software finds smooth routes with low or no traffic, which prevents a delivery vehicle from getting stuck or causing damage. In short, the software contributes to decreasing vehicle maintenance costs. 

RTO cost 

The software also helps in minimizing RTO (Return to Origin) costs by ensuring on-time deliveries. Even various online researches have also shown that delay in delivery is one of the major factors behind customers returning their orders. The best route optimization software also offers a dynamic route planning feature, which immediately re-routes when a customer cancels or reschedule delivery at the last minute. 

Fuel cost

Drivers following long delivery routes might take a toll on the fuel cost. Also, it can lead to poor performance of drivers. Route planning software generates the most efficient routes considering multiple stops and other factors. By following these routes, drivers can not only ensure on-time deliveries but also timely return to the facility. 

Operational cost

With route planning software, businesses can minimize operational costs by accomplishing route planning tasks with no manpower. The software also facilitates dynamic enroute order clubbing feature, which helps in reducing the overall delivery cost by clubbing orders and assigning them to one driver.

Reduction of all these costs contributes to saving the overall delivery cost, which, undoubtedly, is best for any business. The only thing you have to pay attention to is the selection of route planning software. If you want a customized one then choose Shipsy’s SaaS-based route planning software, which includes all the advanced features. 

Their software considers all essential parameters and generates the most efficient delivery routes. Moreover, it also includes a geocoding engine to convert incomplete addresses into precise coordinates to make it easy to locate an address. So, what are you waiting for? Prepare a set of requirements and reach out to one of the Shipsy’s team members to get customized route planning and optimization software.