To accomplish this task, businesses are investing heavily in route optimization. Companies that do pay attention to their delivery routes are more likely to be more productive and efficient.
By improving route planning, your business benefits in several ways. But before we break down what those benefits are, let’s examine the simplest ways to maximize your delivery potential.
When it comes to route optimization software, there are a wide variety of listed solutions. But It’s almost impossible to consider all the factors and variables involved with route planning, so finding an efficient planning solution is a good idea. The tool’s complex data-based algorithms remove inefficiencies by offering real-time instructions and driving route visualization.
Manually mapping out your routes is possible, but most routes aren’t easily adaptable on the fly. Even if your company has the time and resources to spend on in-house route optimization, your money could be better spent elsewhere.
Do you want to run a supply chain management business? Instead, you can delegate your customized delivery logistics to a third-party, so you can place your focus on other priorities and responsibilities.
If you’re keen on keeping your dispatching team in-house, then you can hire a few employees. An in-house dispatching team will handle the same tasks as a third-party logistics provider, except you’ll have more control over their operation. When you hire an experienced team of dispatchers, your drivers will keep products moving while promoting customer satisfaction.
Overcoming route challenges is essential; it’s why so many companies use route planning software and hire dispatch teams. But the question is, why does route optimization matter?
Productivity instantly increases when drivers efficiently plan their routes. Instead of constantly backtracking and missing stops along the way, drivers can set up their routes and feel confident that they’ll make all of their deliveries on time.
This greatly reduces the stress on your drivers. In instances where your employees can’t fulfill their obligations, drivers will receive updated information on new delivery dates. Drivers can then contact customers to set up a new time.
Late deliveries are difficult for your customers to forgive. 69% of consumers are much less or less likely to shop from retailers that don’t deliver products within two days of the date promised. If your company consistently misses delivery dates, your review scores will start to tank.
But when you use efficient routes, you’ll deliver more packages faster. Not only will this improve customer satisfaction, but it also increases the chance that they’ll buy from your company again.
Most customer-facing positions will experience some degree of work-related stress, either because of the nature of the job or from angry consumers. When routes aren’t optimally planned, delivery drivers receive negative feedback from all directions, which may cause them to quit.
Having to replace disgruntled drivers impacts your reputation and your finances. On the other hand, keeping your drivers happy will increase retention and employee satisfaction rates.
When drivers have to constantly re-plan their routes or backtrack to previously visited locations and neighborhoods, they waste gas. Not only that, but frustrated drivers tend to put more strain on company vehicles than they have to, leading to a rise in car-based maintenance costs.
With well-planned routes, drivers will only use their vehicles as much as they need to. This greatly reduces the risk of expensive repairs due to engine failure or a broken transmission.
Drivers are more likely to be anxious, exhausted, or stressed when they have to navigate inaccurate routes. If your route plans don’t account for road work, traffic, or weather, your drivers will suffer from significant mental and emotional strain, which could lead to greater accident risk.
If your drivers get into an accident, both your business and your employees have to manage mounting costs. Your business could be looking at a DOT compliance review as a result. To avoid this situation altogether, invest in dispatchers or planning software to create efficient delivery routes.