8 Factors to Consider When Choosing Route Optimization Software for Your Logistics Business

With routing requirements of companies becoming more complex, it is of prime importance that companies choose the Route Optimization software according to save fuel costs, reduce overtime costs, and minimizing human dependency.

Route Optimization Software

Businesses often think of Route Optimization software as a guide for telling them the shortest distance between point A and B.

Even though Route Optimization software does provide that facility, modern-day software is a lot more than chaperones for guiding shipments from one location to another.

The advanced solutions in Route Optimization allow route planners to manage a fleet, get driving directions, add multiple stops, improve productivity and increase service-level agreement (SLA) adherence.

Route Optimization can thus lead to saving fuel costs, additional pick-up/delivery stops, reduction of labor overtime costs and minimizing human dependency.

With Route Optimization becoming the need of the hour for virtually every business operation, it becomes imperative that organizations choose their Route Optimization software with utmost care.

Here are the factors to keep in mind for selecting the correct Route Optimization software for your business:

Real-Time Traffic Consideration: A study says that in 2017, the U.S. alone incurred a congestion cost of $305 billion. Considering real-time traffic can not only save your logistic costs but can also ensure on-time delivery and better adherence to SLAs for increasing customer delight. Businesses should look for software that plans routes and calculates ETA based on dynamic, real-time data.

Order-Vehicle Constraints: Many a time software tend to focus on cold, hard data and ignore real life order-vehicle constraints. Often, two different genres of products, ex- electronics and perishable can’t be shipped together, at other times, a specific kind of product, say medicines can only be supplied in special vehicles. Softwares that consider these order-vehicle constraints have a better chance of helping businesses in real-world scenarios.

Accurate Geocoding: Virtually every Route Optimization software available in the market boasts of a geocoder. However, converting addresses into a particular point on the map to precise latitude and longitude coordinates is a task easier said than done. Understanding ambiguous addresses and comprehending local contexts is the key to accurate geocoding. Having a stellar database of local addresses and apartment locations is also a big plus.

Historical Data Inspection: Your Route Optimization software should examine historical data on three levels- Riders, Customers and Time of the day. A rider’s historical evidence can tell you about his skills, expertise, preferred time of deliveries and preferred region to work. On the other hand, a customer’s historical data can tell you about his preferred time slots, availability and any special instructions for delivery. Historical information of a given time of the day can give you insights about the prevailing traffic conditions of a region and working/closing hours of a particular building. Your Route Optimization software should learn from past experiences and plan routes accordingly.

Rider Preference Consideration: One of the biggest challenges in the implementation of routing plans is the resistance from the on-ground operations team. These teams are used to work in a particular manner and to change their entire operating system is a massive transformation for them. To smoothen out this process, it is important that your software takes preferences from the on-ground team to phase out the traditional system rather than trying changing the entire procedure on a single go. Read more here

Source:  https://www.supplychain247.com/article/8_factors_to_consider_when_choosing_route_optimization_software/transportation

By Sreshtha Das

Website: https://www.supplychain247.com

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