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How Route Optimisation Can Improve Business Profitability

In today’s business landscape, online businesses are thriving because people can shop for their needs in the comfort of their homes. Consequently, logistics companies must deliver quality service because they’re responsible for these orders. This means delivering goods efficiently, especially because people expect their packages to arrive at a specific time. This is where route optimisation comes in.

Route optimisation is plotting all the stops a courier has to make along the way to deliver a package using route optimisation software. The route isn’t necessarily a straight line from point A to point B, and the driver might have to make several stops to pick up, drop off, or deliver additional packages along the way. If the route planned is inefficient, it can lead to delays and increase the delivery time, which disappoints customers.

While highly beneficial, many companies are still skeptical of route optimisation software. For this reason, we’ll discuss how it can help improve profitability.

How Route Optimisation Works

Beyond the initial details mentioned above, route optimisation works a little deeper. For one, the optimisation program has to gather all the necessary data. The information in the program enables the software to locate an efficient route the driver can take, which is the final product.

The program works by routing the driver to the first stop, which is the pickup location. Using alternative routes and traffic data, the program checks the ETA. If the ETA is too long, it changes the path to a more efficient one. This process continues until all pickup and drop-off locations are plotted, making it possible to deliver the package as soon as possible.

Can’t Apps Be Used?

A common question on people’s minds is why can’t they use apps such as Google Maps or Waze to do the job. This isn’t possible because these platforms can’t factor in all the variables. For instance, a driver can’t know if traffic will be heavy if they start the route early. Using apps would result in a longer ETA to deliver the package.

Furthermore, these platforms can’t optimise the route because they won’t consider the scope of what’s being planned. A driver might not have enough information about the locations to which they have to deliver the packages, which indicates an inefficient route. In turn, it will be counterproductive and precious time will be wasted.

How Businesses Can Profit from Route Optimisation

One of the main benefits of route optimisation is its ability to decrease the amount of fuel used. This attribute is huge for businesses because it reduces the company’s carbon footprint. Businesses can also save a lot of money by not paying unnecessary penalties because of delays. You can also use route optimisation software to monitor your drivers’ efficiency, which is necessary for compliance reasons.

For drivers, route optimisation can help them because they can spend less time on the road, which also helps with security since it lessens the chance of getting into an accident.

Finding the Right Route Optimisation Software

To find the right route optimisation software, you must ensure the company has a proven track record of success. For instance, they have to factor in company size, the number of packages delivered, and the number of packages often shipped back and forth.

In addition to this, you also have to consider the program’s capabilities. For instance, does it allow for more than one driver? Does it factor in vehicle utilisation, labor, and fuel? Does it have the capacity to consider changes in traffic?

All these questions are pertinent regarding route optimisation software because you want to ensure it accurately delivers the desired results. Also, it must use the latest technology available because it will give you a competitive advantage.

Conclusion

Businesses can never go wrong with using route optimisation software because it has the potential to save your business a lot of money. It will also help you avoid penalties because of inefficient routes, creating opportunities and increasing productivity. All that matters is finding the right one that suits your needs.

If you’re looking for route optimisation software, SolBox has what you need! Our platform is equipped with comprehensive tools and features to ensure efficient logistics at an affordable price. Reach out today to book a free strategy consultation!

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