Route Optimization: More Than the Shortest Distance Between Two Destinations

12 Aug 2015

Route optimization is part of GPS fleet management that offers the significant cost savings. When it comes to route optimization, it’s more than trying to figure out the shortest distance between two destinations. It’s a more complicated formula that encompasses a variety of variables and priorities that can have an impact on your profitability and customer satisfaction.

Often, drivers intuitively plan out their routes each day so they are as short as possible. They look for routes that provide them with as little driving time as possible. Their driving routes could be planned out much more efficiently, though, which would allow drivers to finish more work every day, decrease their daily fuel consumption, reduce vehicle wear and tear, and minimize travel time in their vehicle.

The timing and effort put into planning daily routes can be reduced with GPS fleet tracking and route optimization as well. Although the savings might be minimal for drivers that drive the same route daily, for drivers with multiple routes, it can save time by automating the routing process and save substantially.

Ideally, you want the most fuel efficient and shortest path for a multi-stop route, however, there are road conditions, customer operating hours, traffic congestions, road construction, and overtime costs to think about. To run a successful fleet management, route optimization is important.

Route optimization software that is easy to set up and use helps you:

  • Make deliveries more efficiently and faster.
  • Increase the number of deliveries each day and improve customer satisfaction.
  • Reduce your fuel consumption.
  • Maintain high service levels by optimizing your workflow and minimizing the amount of staffing you need.
  • Get rid of manual, time-consuming scheduling processes which will decrease your planning time.

Other Benefits of Route Optimization in GPS Fleet Management

Reduce Effort in Planning

You can shorten reaction times and reduce hours of stress by reducing your planning effort since route optimization is automated. This will allow you to plan more quickly, get your drivers out there on the road earlier, and serve more customers

Increase Service Levels

You will have the ability to share accurate ETA’s and meet the expectations of customers, which includes the service time, time windows and special skill requirements within your planning.

Save on Operating Costs

Use fewer resources to serve more orders. With smarter assignments and optimal routes, you can use less fuel consumption, reduce carbon emissions, and have leaner workloads.

Eliminate Inefficiencies

When you don’t have the right kind of routing software, drivers can select job sites inefficiently which can increases overtime and fuel consumption and reduces productivity resulting to poor customer satisfaction.

Route optimization can impact the bottom line of fleet owner’s substantially. Since it leads to faster response times, it can also increase profits due to its enhanced capabilities.

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