Looking to reduce costs, while simultaneously improving customer service? Route optimization can help you do both.
Most transportation companies face challenges in keeping their costs in line and maintaining competitive levels of customer service. Juggling ever changing delivery requests with driver and truck availability is a difficult task.
Companies try to manage these tasks with little or no technology. Manual, or inadequate systems, lead to costly inefficiencies. These inefficiencies take the form of late deliveries due to poor directions, overlapping routes and empty backhauls.
Getting a handle
Route optimization combines technology and processes. The technology that is required is GPS tracking for your vehicles and a dispatching system that can optimize driver schedules. GPS technology will provide accurate information on vehicle locations, ensuring that dispatchers can locate the nearest available vehicle for the job. The navigation features of commercial GPS devices can also provide route optimization for trucks, and help drivers avoid construction and traffic delays.
Dispatching software will provide dispatchers the visibility to see where all of their vehicles are located in real time. These systems also provide optimized scheduling capabilities, ensuring that deliveries are planned more accurately, thereby optimizing driver and truck efficiency. Additionally, many have alerting capabilities that help dispatchers proactively remedy issues, thereby minizing their effects on the schedule.
The process of route optimization offers major benefits to the companies that embrace it. Improved efficiencies are immediately felt throughout the company.
The impacts of these new efficiencies are significant. Industry studies have shown improvements such as:
• Reduced fuel consumption by up to 30%
• Reduced driver overtime by up to 15%
• Reduce unauthorized vehicle usage by up to 12%
Take the Next Step
If you are interested in improving your fleet utilization, the next step is to map your existing processes and define your areas of inefficiencies. Once you understand the areas you need to work on, you can get started on your path to route optimization.