How route optimisation across fleets significantly improves productivity
Route planning may be just planning the delivery from point A to point B, but Route Optimization is the process of planning the most cost-effective routes, overcoming challenges like time, manpower, communication, resources and technology.
Strategies for Route Optimization
The latest route optimization strategies use real-time and historical data to determine the best routes. Organizations in supply chain, last-mile delivery, school buses, taxis, and other transport services face challenges in managing costs, delivery schedules, and driver availability. Managers must efficiently map multi-stop routes to meet customer needs while keeping operations cost-effective.
Fleet managers usually use one of the following strategies for route optimization.
Static Route Optimization
Static route optimization is seen used by mostly conventional companies but is better than a manual process. This strategy works best for long haul fleets and for fleets making trips on a timetable, over a year or quarter, serving predictable customers and is the least used type of optimization.
Dynamic Route Optimization
This is the newer strategy which adjusts the route plan on a daily basis taking into account historical data, traffic trends, weather events, accidents, etc. It is dynamic, more scalable and flexible. Routes can be altered hours before the delivery or even for shift-to-shift tasks.
Real-time Dynamic Routing
This strategy is most used, is a more effective way to route optimization and substantially current. It is designed for continuous optimization in real-time, evolving new tasks when traffic pattern change, while drivers are on the road.
The Challenges in Planning Routes
To reduce fuel costs
Fuel sensors integrated into Trinetra’s vehicle tracking system enable fleet managers to monitor fuel levels, detect misuse and theft, and track fuel usage for each vehicle. The FMS software optimizes fuel costs, which account for nearly 60% of operating expenses, by minimizing vehicles, stops, and time on the road.
Constraints of resources
Resource constraints are a challenge to logistics and transport companies. Fleet managers use route optimization software to balance the constraints to arrive at the most optimal routes to achieve scheduled deliveries, juggling with the number of drivers and vehicles available at the time.
To Minimize Last-Mile Costs
Logistics companies find last-mile delivery costs as a challenge. The larger the fleet the more the challenge and route optimization software cuts down the last mile deliver costs to keep up cost-effectiveness.
To Increase Driver Performance
The route optimization feature of the FMS software tracks driver performance and maintains a Driver Scorecard to provide feedback for improving behavior and performance. It compares the driving history of good drivers to enhance driver efficiency for the fleet company. Additionally, route optimization allows fleet managers to manage new or canceled deliveries or assignments and update drivers accordingly.
Trinetra Wireless’ fleet management software is a future-ready, customizable solution for transporters and logistics companies. It offers real-time monitoring, data analytics, and insightful reports, with mobile app integration, video telematics, GPS and geofencing technologies.
