A Route Optimization Example

There is much more to route optimization than just determining how to get from one place to another. In the simplest of examples, you can take the route with the shortest distance or the fastest time, but when you add in business considerations the complexities add up quickly. No matter what your specific needs are, there’s always a best way to get there – and that’s where route optimization factors into the equation.

Route optimization can help onsite service and delivery businesses transform their operations into well-run, efficient machines with the best routes possible. That means drivers making more stops, more savings on expenses like fuel, and more satisfied customers thanks to timely deliveries or service calls. Route optimization can deliver huge wins for small and large businesses, and that’s why we’re going to show you exactly how to do it today. 

To skip to a section that’s most relevant to you, click one of the links below:

• What Are 5 Major Benefits of Optimizing Transportation Route Scheduling?
• How Do You Optimize a Route?
• How Is Automated Route Optimization Done?

What Are 5 Major Benefits of Optimizing Transportation Route Scheduling?

Most businesses are always interested in improving customer service, decreasing operational costs, and maximizing profits. Route optimization can unlock many different benefits, but here are five main benefits of route optimization:

1. Increased efficiency. Optimizing transportation route scheduling allows companies to improve the efficiency of their fleet operations and streamline their business processes overall. This is especially beneficial for logistics organizations making frequent deliveries or field service calls, such as parcel delivery or repair services. By optimizing routes, companies reduce the time and resources spent on transportation and make better use of their vehicles, drivers, and other assets.
2. Reduced costs. When transportation routes are optimized, businesses can reduce costs by minimizing delays, reducing missed deliveries, and eliminating other inefficiencies that occur with unoptimized transportation routes. This helps maximize productivity, limit needless manpower expenses, and reduce vehicle maintenance and fuel consumption expenses.
3. Improved customer service. Optimized transportation routes allow businesses to meet customer demands effectively by providing timely and reliable delivery of their products or services. It also enables companies to seamlessly integrate live customer notifications and feedback requests into their business model. This increases customer satisfaction and retention rates, which is essential for any successful organization in today’s competitive marketplace.
4. Enhanced reputation. By providing excellent customer service through optimized transport routes, organizations can cultivate positive reputations with vendors and customers as reliable providers of goods or services delivered on time and without incident. Maintaining a solid reputation is invaluable for earning more business and producing higher revenue.
5. Greater logistical flexibility. A final benefit of utilizing systematic route optimization processes is it enables businesses to remain nimble in the face of challenges that can come up at any given moment. Real time fleet visibility means businesses can adapt quickly and better manage logistical needs across their operations. For example, if someone calls in sick, a truck breaks down, or unforeseen road work delays a driver, real-time fleet routing software allows the fleet manager to reroute other drivers as needed and give customers an up-to-the-minute ETA.

How Do You Optimize a Route Manually?

There isn’t necessarily a single set of criteria that can be used to optimize every route in the same way; instead, various factors must be considered based on the specific situation.

Factors commonly considered when optimizing a route include distance, mileage traveled, driver availability, labor costs, and customer-specified time windows. Naturally, these factors vary from one situation to another, so it is important to utilize route planning software that tailors your approach depending on the specific need.

Here are some of the primary criteria you should consider when optimizing a route:

• Total stops and route particulars
• Real time traffic consideration
• Driver management
• Order-vehicle constraints
• Live geolocation data
• Time constraints
• Historical data

Since every organization is different and the “best” option will likely vary depending on the route and the goal, each scenario should be analyzed individually while considering all these important criteria.

Can Google Maps Optimize a Route?

Google Maps is an effective mapping tool if you don’t need to make more than ten stops, or if you’re not running a business, but it does not automatically optimize routes. Route optimization software free of any cost that effectively solves all of the criteria we’ve discussed is hard to find.

That said, you can manually plan routes using Google Maps and the criteria we’ve discussed, but Google route optimization done in this way can be time-consuming and labor-intensive as you try to keep all of those criteria in mind while laying out your stops. You might need to hire a full-time route planner to go this route! And remember, you can only include up to ten stops total with Google Maps. 

How Is Automated Route Optimization Done?

Unless you’re using route optimization software with automated planning, an optimal route isn’t something you can typically create in a few minutes. Considering all of the criteria we’ve already laid out that business operators should keep in mind, it can be time-consuming to optimize your routes manually. It’s possible, but many professional logistics operations use software to do the heavy lifting for them.

If you’re looking for software to automate your route optimization — and you should be — here’s some of the criteria it should take into consideration to create an optimal route:

Total stops and route particulars

The cornerstone of any route is how many stops must be made and where each stop is located. Once you have a full list of stops, you can start determining their sequential order, any stop particulars that may require a specific vehicle or driver, and build a route that incorporates the other criteria as well. 

In terms of stop particulars, keep in mind factors like:

• Best or nearest driver to dispatch to the route
• Historic travel times and traffic patterns
• Assigned territories for sales or service staff

Driver management

Managing drivers effectively isn’t easy and only gets more complicated as your workforce grows. In terms of route optimization, you need to be mindful of each driver’s:

• Schedule
• Breaks
• Geographical locations
• Skill sets (e.g., driver’s license that allows them to drive transport trucks vs. just cargo vans)

You’ll likely also want to be able to balance the workload among drivers as desired, e.g., plan routes so each driver gets roughly the same amount of stops or will work the same number of hours, in the interest of fairness, or balance it so that more cost-effective drivers do more while more expensive options like contractors are utilized less.

Order and vehicle constraints

When planning a route, it’s important to consider specific order details that may require particular vehicles in your fleet. For example, if you operate a general delivery business, you might deliver everything from food to heavy equipment. Therefore, you might need to tailor the vehicles you use per route based on things like refrigeration ability, size and weight capacity, or whether or not the vehicle has a ramp. These constraints could affect which vehicles are used for certain stops.

The same factor exists for field service companies regarding vehicle requirements and driver skills. For example, some employees might have certain certifications or skill sets that enable them to complete jobs that others can’t, like a particular driver’s license for large vehicles or a technical certification for handling certain tools. These factors will need to be considered and accounted for when you’re optimizing a route.

Time constraints

Similar to order-vehicle constraints, time constraints can add an extra layer of complication to a route. For example, if you’re a delivery or field service company, then there’s a good chance you may need to make stops within specific time frames, e.g., during the lunch hour, in a specific time window when a customer is home, etc. All of these time constraints need to be factored into a route plan and optimized for by allocated drivers appropriately. 

Historical data

Information is power, and the more information you have about your routes, the better you’ll be able to optimize them. That’s why large and small logistics operations should consider using route optimization software that allows users to collect data, analyze performance, and make informed decisions about how to optimize their operations based on historical data.

How is route optimization implemented?

Now that you know the important criteria to consider when optimizing a route, how do you actually implement route optimization into your workflow? The particulars will vary based on the software you use, but generally speaking, here’s a step-by-step  route optimization example you can implement:

1. Create an optimized route plan

Build a route plan using the criteria discussed previously. Import or list all of your stops and order them logically based on location, route and destination, particulars, time constraints, vehicle-order requirements, and traffic considerations. 

2. Assign drivers

Once you have your route(s) assembled, assign the driver(s) who will be working them. Remember to factor in driver availability, break times, stop times, and particular skill sets that might be needed for certain stops. 

3. Manage issues in real time

Track your drivers in real time, if possible, and manage for unexpected delays, changes, etc. Advise customers of any delays that may occur. 

4. Analyze the data and reevaluate

Once the route has been completed, dig into any available data you have to determine what went well and what could’ve gone better. These are factors you can consider the next time the route is completed. 

Route optimization doesn’t have to be complicated, especially if you use specialized software like OptimoRoute that handles all of the heavy lifting for you. It takes less time than you think to get up and running with a new route optimization software, and you’ll likely notice a change in the efficiency of your operation right away.  If you’re interested in learning more, check out this detailed route optimization blueprint.