Trucking companies interested in route optimization all look for one thing: an efficient way to deliver goods appropriate for all parties. The question now is, how can individual motor carriers do this according to their business need? What is the right approach? Many modern trucking companies are using route optimization to get the most out of their hauls.<\/p>\n\n\n\n
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Is your trucking company utilizing route optimization to get\nthe most out of your runs? If not, you may be missing out. But perhaps you\ndon\u2019t even know how to properly utilize route optimization. We want to take a\ncloser look at the practice today. First, let\u2019s look at what the process of\nroute optimization actually is. <\/p>\n\n\n\n
What is Route Optimization?<\/strong><\/p>\n\n\n\n Route planning helps field service and trucking companies\nplan the best routes for their operators every day. Whether it be to offer more\nreliable ETAs or to improve customer satisfaction over multi-stop routes,\noptimization lets them do it. When routes are planned better, truck drivers\nspend less time driving, thus reducing fuel costs and increasing truck driver\nsatisfaction.<\/p>\n\n\n\n Route optimization, put simply, is the process of\ndetermining the most cost-effective route for your truck drivers. Still, it\nisn\u2019t a cake walk. It is far more complex than simply finding the shortest path\nbetween Point A and Point B. Fleet managers must factor in all the relevant\nfactors, including the truck drivers, vehicles, and location of all required\nstops on the route. Finally, time windows for deliveries must be considered. <\/p>\n\n\n\n Other factors to think about include:<\/p>\n\n\n\n Planning and optimization can quickly become overly\ncomplicated if you have certain restrictions and specifications in place, whether\nyou have a lot of vehicles or not. For optimal route calculation, all relevant\ndata must be considered, including truck and goods restrictions, individual\nvehicle types, as well as transportation and toll costs. And when you are en\nroute, a professional truck navigation solution should make sure your truck\ndrivers reach their destination quickly and safely.<\/p>\n\n\n\n Different Types of Optimization<\/strong><\/p>\n\n\n\n Here\u2019s the thing, there are different types of route optimization. It all depends on the type of trucking company you run. The two types you will likely run into include standard versus dynamic routing. There are questions you must ask to determine which type best suits your business. Are you running the same stops every day or week or is routing a complex mental workout? <\/p>\n\n\n\n [wp_ad_camp_2] <\/p>\n\n\n\n <\/p>\n\n\n\n Standard routing can be utilized when a vehicle visits the\nsame customers in the same order all the time. Dynamic routing allows fleets to\ncreate a set of routes and stop sequences each day. This process is designed to\ndrive fleetwide cost savings and create geographical routes. <\/p>\n\n\n\n Trucking companies across the country use standard\noptimization. By utilizing route planning, customer satisfaction is improved,\nand driver-to-consumer relationships are strengthened. Fleets benefit from\noffering delivery consistency. Pre-planned routes help ensure customers get\ntheir loads at reliably scheduled appointment times. <\/p>\n\n\n\n Dynamic routes are often preferred by trucking companies\nwhere transportation costs are high or customer needs change on a near\nreal-time basis. These fleets need to be able to quickly adapt, and dynamic\noptimization allows them to do just that. Still, some companies require even\ngreater route flexibility. What if, for instance, your trucking company\noperates both routine and complex deliveries?<\/p>\n\n\n\n That\u2019s where cell routing comes in. While this is a\nlesser-known version of route optimization. Cell optimization refers to\ntrucking companies grouping a series of service locations together. When you\ncreate a customer \u201ccell,\u201d you can ensure your truck drivers consistently serve\ncertain customers while also taking advantage of dynamic routing for other stops\nto minimize delivery costs.<\/p>\n\n\n\n Planned versus Actual Routes<\/strong><\/p>\n\n\n\n One of the main techniques used in route optimization is\nplanned versus actual routes. Consider that even the best-laid plans don\u2019t\nalways pan out as you may intend for them to. This is why motor carriers\nutilize telematics to gather and sort information such as vehicle speed, time\ntraveled, routes, pick up items, etc. All this information is then fed back\ninto route optimization software. <\/p>\n\n\n\n For example, a planned route might use the posted speed limit to calculate travel time. But what if there is rush our traffic? Trucking companies must be able to route real-time information into their system to generate a more realistic plan for their truck drivers. Companies need to look at routes from a historical perspective. <\/p>\n\n\n\n [wp_ad_camp_2] <\/p>\n\n\n\n <\/p>\n\n\n\n It is equally important that fleet managers and route\nplanners look at the trips of multiple vehicles in a given day. Are there any\noverlapping routes that can be eliminated or consolidated? By identifying and\neliminating this overlap, you increase fleet efficiency and decrease overall\nfuel costs. <\/p>\n\n\n\n By organizing the data, fleet managers can uncover\ndiscrepancies. Comparing your planned versus your actual routes allows you to\nsee any gaps in the process and set up any follow up plans accordingly.\nAnomalies happen. The question is, do you have a solution in place to account\nfor them?<\/p>\n\n\n\n Match to Your Goals<\/strong><\/p>\n\n\n\n Trucking companies must match their goals with their\ndesires. While routing optimization can help trucking companies take the most\nefficient route, they can also help businesses achieve ancillary goals along\nthe way. The key is to ask yourself \u2013 what is the goal?<\/p>\n\n\n\n If your goal is to reduce business costs, you should\nconsider rout optimization. Taking the scenic route may be pretty and all, but\nit wastes time and extends fuel usage. By ensuring your vehicles take the most\nefficient route possible, you save both fuel and money. <\/p>\n\n\n\n You may also want to simply right-size your fleet. If you\nhave 10 trucks making 100 stops and each stop takes 15 minutes, when you factor\nin other considerations, you may find you only need 7 trucks instead of 10.\nThis will help you make sure your fleet is the right size for your routes. <\/p>\n\n\n\n You may be a direct-to-store trucking company. If so, you\nface challenges other trucking companies do not. Route optimization software\ncan be used to help trucking companies meet delivery windows and increase customer\nsatisfaction. <\/p>\n\n\n\n Should You Use Route Optimization Software?<\/strong><\/p>\n\n\n\n The next question is whether your trucking company should\ninvest in route optimization software. Modern optimization programs do help you\nfind the shortest distance between two routes, but it also offers a lot more\nthan just a simple suggestion of which roads to take. Advanced route optimization\nsoftware helps fleet managers get driving directions, add multiple stops,\nimprove efficiency, and ensure service-level agreements are adhered to. <\/p>\n\n\n\n But with all these considerations, what factors should fleet\nmanagers focus on when selecting route optimization software? Pay attention to\nthe following:<\/p>\n\n\n\n With routing requirements being so complex in today\u2019s\ntrucking environment, route optimization software might be just what your\nbusiness needs to create greater efficiency and add more to your bottom line. <\/p>\n","protected":false},"excerpt":{"rendered":"