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3 Challenges That Delivery Route Optimisation Can Help Solve

3 Challenges That Delivery Route Optimisation Can Help Solve

Overcoming Modern Delivery Challenges

Increased online trade has resulted in new challenges for many transport and logistics companies.

Customers' orders must not only be handled quickly and efficiently but also delivered quickly and within tight time windows. This increases the difficulty when trying to complete the delivery with as small a carbon footprint as possible. In Order to meet customers' ever-increasing demands, companies need to consider all of their deliveries and use automated optimisation of their delivery routes to ensure timely deliveries and safeguard customer satisfaction.

Many of Descartes’ customers today use delivery route optimisation to efficiently process orders from their customers, gain a better view of their available resources, view any operating restrictions that exist and efficiently produce the combination of optimised routes and stops that best achieves their objectives.

Whether their goal is to meet customers' delivery requirements, minimise costs per delivery, reduce their carbon footprint, or increase profitability, delivery route optimisation is an important step. These are the three most common delivery challenges that route optimisation will help to solve:

 

  1. Increasing Productivity
  2. Improving Customer Experience
  3. Reducing Fuel Consumption

 

1. Increasing Delivery Productivity

The basis for an efficient and profitable delivery operation is high productivity, and with the help of technology, it is possible to increase productivity by 15%.

With the help of a smart solution for delivery route optimisation, not only does it reduce the time taken to create routes, but also the need for manual intervention and management, leaving planners time to handle the exceptions or complicated deliveries. The time freed up can then be utilised in other ways by the business.

We also know that delivery route optimisation increases a driver's productivity as the mileage per delivery is shortened and the number of deliveries along with a route increases. The workload is also improved and evened out amongst the drivers/vehicles so that better utilisation of assets is achieved.

Delivery Optimisation Case Study

 

2. Improving Customer Experience

Perhaps the most important aspect for delivery, logistics and transport companies is customer experience and safeguarding this for the continued success of the business.

It includes everything from how the order process is experienced to when and how the actual delivery takes place. The customer's expectations are often that an order will be delivered at a time convenient for them, within a narrow time window and at a price they are prepared to pay.

Delivery route optimisation can contribute to customer satisfaction in a positive way. When deliveries need to be planned at short notice, i.e. when the customer places an order and wishes to receive it on the same day or the next day after the order is placed. Delivery route optimisation can be used to quickly and easily select the best vehicle and existing route to fulfil the order and then create the best possible delivery route, including the best order in which to deliver the items, significantly shortening the process time from order to delivery.

 

3. Reducing Fleet Fuel Consumption

A third challenge that can be solved with the help of delivery route optimisation is to reduce fuel consumption. Vital with the record fuel prices we are currently seeing.

The two main reasons for wanting to reduce fuel usage are because of course it will reduce costs, but also because it is an important part of reducing a company’s carbon footprint and climate impact.

Fuel savings can be achieved through several different initiatives, such as the shortening of driving distances with optimised routes and delivery schedules, and by ensuring that the load is as optimised for the number of deliveries as possible. Even if each route can only be shortened by one mile and one additional delivery is added to each load, over the number of vehicles in the fleet and days of the year this can lead to a massive saving per annum.

Through delivery route optimisation, there is the opportunity to take control of these factors, reducing the mileage and improving the delivery capacity to achieve a 5-10 percent saving in fuel consumption and increased productivity of between 25% and 35%.

Reduce Your Fuel Costs Today

 

Meeting Delivery Challenges With Optimisation

Many of the delivery challenges that companies experience today are all `related to each other.

If delivery route optimisation is implemented to increase capacity and productivity, you will, in all probability, also see other positive effects on the business, such as increased customer satisfaction and reduced fuel consumption. With the huge growth in e-commerce, a general increase in delivery challenges and more discerning customers - the challenges are many, but the possibilities are endless.

Contact us to discover how delivery route planning software can improve your fleet’s efficiency and increase delivery density.