Route optimization is the process of planning one or multiple routes, with the purpose of minimizing overall costs, while achieving the highest possible performance under a set of given constraints and considering other routes which share the same purpose. This doesn’t necessarily mean finding the shortest route. Route planning focuses on minimizing the total driving time or total cost when making any number of stops, taking into account variables such as:
- Delivery time windows
- Vehicle load capacity (weight and/or volume)
- Driver schedule
- Driver proximity and/or hub location
- Traffic congestion
- Accidents on the roads
When done manually, finding the best routes is a tedious (almost impossible) process. If you have just a few vehicles with 10 stops each, there can literally be millions of different route possibilities. With route planning software, you can calculate the best routes in a matter of seconds, maximizing the number of deliveries your drivers can make (and the amount of revenue your business can generate). Route optimization is a software-aided process that can realistically cut transport operating costs by up to 30% and significantly increase customer satisfaction by reliably meeting ETA objectives. An advanced route optimizer can even help you communicate with your drivers in real-time (without calling them up), track the drivers’ activities, and collect customer signatures. The drivers can also add notes, videos, and photos.