Route optimization software can be of significant value to busy fleet managers and the overall enterprise. The right route optimization solution will yield the following benefits:
1. Identifies the Most Cost-Effective Routes
Routing software solves the ‘Traveling Salesman Problem’ by using advanced algorithms (which are far more effective than humans at crunching the numbers) to determine the best and most cost-effective route options for a mobile workforce.
2. Reduces Mileage
Today’s routing software creates routes based on driver and vehicle availability as well as schedule constraints — all while minimizing miles. By intelligently assigning resources, route optimization tools help to reduce overall driver time on the road. The fewer miles driven yields significant cost savings to a fleet by:
Reducing Fuel Costs: significant benefit since fleet managers report how fuel costs account for more than 30 percent of overall expenses
Reducing Vehicle Maintenance Costs: Less time spent on the road will reduce the need for maintenance on fleet vehicles. Vehicles can stay in active rotation for a greater number of trips before they must be pulled out for necessary mileage-based care and the loss of functional time is also reduced as vehicles spend fewer hours undergoing maintenance and more hours in service.
Reducing TCO (total cost of ownership), by reducing wear-and-tear.
Lowering Violations, Accidents, and Associated Costs. Drivers spend less time on the road when a fleet is routed properly. That, in turn, means less exposure to the elements, traffic, and safety risks, thereby positively impacting a fleet’s insurance premiums and cutting expensive liability costs. Less time on the road is also a safety benefit for the fleet - the safest miles are the miles never driven.
3. Increases Response Time to last-minute Scheduling Changes
When same-day service orders are created, or jobs take longer than excepted, route reassignment is needed. When a route optimization software is integrated with dispatching and scheduling software, such as that offered by BSM, a Geotab Company, dispatchers to proactively plan new routes with confidence. Quicker decisions lead to an improved customer experience - being on time for customer appointments or being able to accommodate more calls in a single day have a positive impact in real-time.
4. Increase Customer Satisfaction
Intelligent route optimization tools ensure that the right driver gets to the right customer at the right time. This allows companies to tighten service windows given to customers and increases the on-time arrival rates.
5. Increase the Number of Jobs per Day
Increasing the number of jobs each driver completes in a day can substantially increase profits. The risk, however, is that more jobs can result in exhausted and unhappy drivers, as well as increased accident related costs. One way to negate these costly effects is by optimizing your driver’s routes. Routing software will ensure that a fleet’s routes are efficient both in terms of distance traveled and time to the destination and that drivers spend less time on the road reacting to last minute changes will create more time. This leads to shorter service times, allowing a company to increase the number of jobs in a safe and sustainable way.
6. Decreases Time Spent Planning Routes
Compared to manually designed routes and other less-advanced route mapping solutions, the latest in route optimization software can reduce the amount of time fleet managers spend on trip planning. Increasing complexities in route needs, as well as traffic flow, make it critical to have an effective and quick solution to determine the best routes for each destination -- based on the vehicle, cargo and time of day. Software can take over this process with the benefits of real-time data, all while freeing up personnel to tackle other critical tasks.
7. Reduces Avoidable Transportation Delays
Traffic bottlenecks are an ongoing problem for fleets and drivers -- one that only continues to increase over time. A recent report found that congestion adds an average of more than $5,600 per truck per year to fleet operational costs. Fleet optimization software can reduce these costs in several ways. First, these tools can help fleet managers and drivers plan routes that avoid congestion, shortening transportation times without costing more overall for a longer route. Route optimization also allows fleet managers to provide real-time assistance and alternative routes to drivers who find themselves in an unexpected traffic delay.
8. Boosts Driver Morale
Today’s route optimization solutions offer more flexibility to accommodate drivers’ and crew preferences for shifts and routes. The technology has the ability to build a route that fits in with a driver’s life — so the driver can start out from his or her home and stay in a tight area. In addition, driver breaks and lunches can be factored into the routing — ensuring they are taking the appropriate amount of time to eat or recharge. Finally, with integrated dispatch software such as BSMs, drivers need not react to constant last-minute changes. Less frustration and more effective routes boosts morale.
9. Right-Sizes the Number of Vehicles in your Fleet
Optimizing fleet operations can result in reassessing the number of vehicles that are really needed to be productive. With the right route optimization tools on their side, fleet managers may find they need fewer vehicles to do the same amount of work. With fewer vehicles there are fewer drivers, less fuel costs, and less maintenance. That adds up to a major cost reduction for the enterprise.
10. Assesses Driver Performance and Improves Productivity
Drivers that don’t manage their time well, take unnecessarily long breaks, or refuse to follow the routing plan, can cost the business money in unnecessary fuel as well as missed appointments. With route optimization software, inefficient drivers and potential revenue leaks can be easily spotted before they become major problems.
The benefits of route optimization software is vast, as it is a powerful tool that many industries can use to make their fleets significantly more efficient and profitable. These digital tools help fleets better meet their goals of making deliveries in the shortest amount of time and with the lowest costs. As fleet needs continue to become more complex, route optimization tools such as those offered by BSM, a Geotab Company are becoming an essential feature for fleet management success.
This post is part of our Smart Routing Series and includes the following posts:
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