How Can Delivery Companies Make Their Routes More Efficient?

 

Why is routing efficiency critical to the success of delivery companies today?

Powered by the e-commerce giant Amazon, this millennium saw the advent of previously unthinkable delivery times! Same-day delivery, 24 hours, and even 15 minutes for groceries and medicines!

This has invariably raised the bar; Customers now see these delivery times as the new standard and are not willing to settle for anything less. As a result, smaller (but delivery-based) facilities and businesses have been forced to improve their delivery efficiencies. Otherwise, they risk bankruptcy because their customers will go elsewhere. Delivery efficiency has really become so crucial!

Route optimization is a critical part of overall operational efficiency and profitability. If done correctly, shipping costs will be reduced. And because you can complete more customer orders on time, your income increases.

Common problems affecting routing efficiency

Before we outline strategies for routing efficiency, we must first understand what creates such inefficiencies.

Old Manual Routing Methods:

Today's delivery operations are complex, global, 24/7 operations.

Factors such as delivery window, package size, and weight, available resources (drivers, vehicles), number of returns, warehouses used (etc.) are elements that need to be considered. changes (e.g.Gram. Ship to location changed) and you will see why manual methods are not enough.

Obsolete Technology - To expand on the previous point, simply "using technology" is not enough! Outdated technology keeps you in the same place, i.e.inefficient, and unprofitable operation.

Today, entire supply chains are digitized and automated. Your competitors are already using the latest cutting-edge technology, such as Automated delivery software.

Misuse of existing resources: Resources are expensive and limited. Therefore, making the best use of them is critical to an efficient and cost-effective routing program. For example, simply dispatching fleet vehicles to deliver packages as they arrive at your warehouse is not efficient enough to use expensive resources.

General trends show that 10% of consumers prefer same-day delivery. 20% need next-day delivery while 40% are happy with delivery within two days. 

Top 8 ways to improve delivery efficiency

Well, the business goals of increasing sales, reducing costs, and increasing margins are achieved by completing more deliveries successfully and on time. Here are some tips for that:

Use modern, automated online shipping software: These software systems balance all (many!) variables that affect route optimization, including several deliveries, reverse pickups, traffic, weather, vehicle availability, capacity, drivers, available fleet vehicles (etc .) The software is extremely flexible and can make real-time adjustments, even at the last minute (e.g. postponing a delivery to the next day), which is important for maintaining efficiency.

Make sure you enter your relevant dates, processes, goals, and constraints into the software. The software's algorithms can also be customized to suit your business needs. Over time you will learn to use it for maximum routing efficiency.

Real-time Notifications – As the shipping software is GPS enabled, live communication between drivers, central teams, and the end customer, make sure you send real-time notifications to your customers, especially in case of delays or rescheduling. This helps to control customers' anxiety about their orders and makes them happy.

Execute Large Orders First – In any industry, business planning is about managing supply and demand. There are times of high demand (eg. grams. holidays and festivals) when the pressure is higher than normal. In such a scenario, you must have a plan to prioritize the orders, i.e. those which are urgent, have paid a special delivery fee, or may particularly affect your business.

Monitor driver performance – 

As mentioned above, you should get the most out of your routing software by feeding (and customizing) it with your unique processes and goals. This includes setting targets for drivers (e.g. meeting prescribed schedules and routes, on-time deliveries, safe driving protocols, and fuel economy) and comparing their performance against theirs. This helps maintain transparent and fair practices. This is an ongoing task and you must constantly strive to improve the existing level of performance.
Other variables such as driver rest periods and rest days between trips must also be considered to meet the correct expectations. Otherwise, you will set unrealistic schedules/goals for drivers. So it seems that your drivers are not keeping up with the benchmarks that are expected of them.

Consider this: your drivers just departed according to the daily route you assigned. But now you need to add expedited shipping! A last-mile delivery software can easily accommodate and adjust that new delivery while ensuring that the rest of the day's schedule is not affected. 

Planning ahead – As mentioned above, planning ahead helps you prepare for peaks and troughs during periods of demand. This helps to manage the extra pressure on your logistics and resources during times of high demand. Likewise, you could relieve some of your costs (e.g. the number of drivers hired) during the downtime.

Implement the correct type of transport based on the location:

Use means of transport based on the area, i.e.a bicycle in metropolitan areas of the city, mini truck for longer distances, or truck for heavy loads in the city. Check delivery densities, urbanization, parking availability (etc.) while setting delivery times (and costs).

Use a sophisticated warehouse network: Fulfillment locations are critical hubs of your last-mile delivery and logistics.

Carefully plan your locations, sizes, and capacities (etc.). A practical and optimally distributed storage network is key because you want your inventory to be stored as close to the end customer as possible. This contributes significantly to reducing delivery times.

Leverage data analysis: It is not possible to 100% optimize all your routes from day one. Also, don't forget that route optimization software is data-dependent. The more data/information you feed it, the better it can analyze all the many factors that affect route optimization. So make sure you collect as much data as possible from your routes. For example, at what point on a route does a traffic jam begin?Any specific time? How long does the traffic jam last? Is there an alternative route during this time?
This knowledge enables logistics teams to improve the efficiency of their routes. Over time, it will be optimized for all possible targets and variations.

Conclusion: As you can see, delivery software is essential for route optimization. Without them, delivery companies will not be able to achieve delivery efficiencies and keep customers happy.