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What Kind of Businesses Can Use a Route Optimization System?
What Kind of Businesses Can Use a Route Optimization System?
22 Nov 2024
Aptean Staff WriterLogistics can be quite a puzzle these days. Whether you’re running a national distribution company or a smaller, specialized service, getting to the right place at the right time is no small feat. And doing it cost-effectively is even harder.
That’s where route optimization software comes in. It doesn’t matter if you have twenty vehicles operating from one depot or a vast fleet spread across multiple locations; optimized routes can transform operations across various industries and business models.
But not all route optimization systems are created equal. Some basic systems will be unable to offer the right functionality to solve more complex or industry-specific challenges. The key is to select a system that aligns with your business needs. A rigid, off-the-shelf solution can hinder your growth, while a customizable system that can scale with your operation can provide peace of mind—driving productivity and profitability, now and in the future.
In this blog, we'll guide you through how the best route optimization systems work in a range of common business setups. So, you can understand if this software is suitable for your specific business type.
Ready to dive in? Let’s get started.
Route Optimization for 3PL vs. In-House Fleets
There’s sometimes the perception that logistics software is only for distribution-focused businesses and third-party logistics (3PL) providers, but that’s only part of the story. Of course, these companies benefit significantly from economies of scale when it comes to route optimization benefits, but organizations managing their own in-house fleets are equally in need. Specialized software helps reduce the hassle and expense of logistics operations in those businesses so they can focus on their products or other services. Let’s take a look at how effective route optimization software tackles your unique challenges in either of these business types.
As a 3PL provider managing deliveries for various clients, you deal with high volumes, multiple locations and different delivery requirements—all of which demand agility. With a route optimization system in place, you can achieve this in the most cost-effective manner. It helps you cut truck miles, decrease overtime costs, calculate Cost to Serve and reduce empty running. Plus, an advanced system effortlessly manages varied delivery requirements and service levels for different customer contracts without sacrificing your efficiency. This timely, personalized delivery means happier clients, better resource utilization and a stronger competitive edge.
Things are different when you’re managing an in-house fleet. For you, route optimization is all about maintaining full control of the logistics for your products and services—avoiding external carrier costs and ensuring adherence to your unique business or industry variables. For instance, let’s say you’re a grocery delivery service offering precise delivery windows to customers and delivering ambient, refrigerated and frozen products. A route optimization system ensures you have full control over customer service promises, product-specific transit requirements and delivery schedules. This helps you improve on-time, in-full rates, enhance service levels and respond to the demands of your industry, all while keeping costs in check.
So, what does this mean for you? Whether you’re delivering your own products or distributing on behalf of other brands, route optimization software brings you undeniable benefits: increased transportation efficiency, enhanced service delivery and lower operational costs.
Industry-Specific Applications of Route Optimization
Route optimization systems are used across a range of industries to reduce fleet costs, enhance customer service and streamline transportation efficiency. If you’ve got a fleet out on the road delivering materials, finished goods or providing services you’re likely able to benefit. Below, we’ve detailed how route planning systems can be utilized across multiple sectors, but this is just a snapshot and by no means an exhaustive list.
Food and Beverage
In food logistics, you know that every second counts when delivering fresh produce, perishable items, frozen goods or prepared meals. With a route optimization system, you can meet the time and temperature demands of items like fresh vegetables, seafood and dairy products more effectively. This means your trucks can reach stores faster, keeping the products at peak freshness—and your clients happy. Plus, the system can help you remain agile and efficient during demand fluctuations and seasonal peaks, ensuring that you can reduce fuel costs while improving service—critical for profitability in this competitive market.
Discover how food distribution service, Marigold’s & Onions, reduced fuel usage by 7-9% while ensuring its freshly prepared food reaches customers within tight time windows.
Apparel, Homewares and Retail
For retail businesses like yours, staying ahead means delivering the latest in-demand products exactly when customers are ready to shop. Whether you’re trying to keep store shelves stocked or managing last-mile delivery at times and locations that are convenient for online shoppers, you must be able to do it efficiently to remain competitive. Route optimization systems ensure that you can tightly control costs while making more deliveries per day and fulfilling customer requirements. You can even choose a continuous optimization system that allows you to dynamically offer delivery windows at the point of sale that are cost-effective for you as a business.
Manufacturing
Manufacturers, whether dealing with discrete items like auto parts or in process industries like chemicals, rely heavily on lean operating. Timing is everything in these complex supply chains. So, whether you’re looking to move goods between your manufacturing and warehouse locations or ensure on-time, in-full delivery to customers, the efficiency and precision of your transportation operations is vital. Route optimization helps synchronize deliveries with production schedules as well as supporting industry-specific transit requirements and enhanced visibility for regulatory compliance—such as moving industrial gases or controlled chemicals.
Pharmaceutical
Now, let’s delve into the pharmaceutical industry, where the stakes can be even higher when managing the timely delivery of medications and supplies. Route optimization plays a pivotal role in ensuring that deliveries are made efficiently and reliably, a critical factor in preserving the integrity of temperature-sensitive products like vaccines and medicines. By optimizing routes, you can not only improve delivery reliability and reduce costs but also enhance overall customer satisfaction. In addition, you can send timely and accurate delivery notifications to customers in order to boost transparency. These benefits are particularly crucial in an industry where trust and reliability are paramount.
Fleet Size Adaptability: Large vs. Small Fleets
Whether you’re managing a smaller number of vehicles or a vast fleet covering extensive territories, route optimization systems can adapt to fit your unique needs and deliver significant cost savings. Here at Aptean, we usually find that free or basic tools no longer cut it for businesses with over 20 trucks and instead a full route optimization system can deliver good return on investment. Let’s explore how these systems work for different fleet sizes.
When you’ve only got a smaller number of vehicles, each one becomes a crucial asset—there’s no room for unnecessary detours, wasted fuel or extra time on the road. Instead, you need to maximize resource utilization to reduce costs, boost profitability and grow your business. A route optimization system steps in to help you plan efficient routes, minimizing mileage and fuel consumption. This empowers your teams to handle more deliveries or service calls in a day, boosting productivity without extra resources. Plus, with the advanced algorithms and automation of these systems, building routes now only takes minutes, freeing up your planners to work on more strategic projects that can drive growth.
Meanwhile, managing a large fleet brings a unique set of challenges to the table and trying to route them manually can turn into chaos in no time. In this scenario, you’re responsible for the needs of many different customers and drivers, as well as limiting the spiraling costs that large fleets can incur. Thankfully, route optimization systems automate complex route planning—seamlessly handling multi-stop routes, regional zoning and vehicle utilization across numerous locations. The result? Smoother, more efficient deliveries, less customer dissatisfaction and a significant reduction in logistical headaches. What’s more, advanced systems include resource management functionality to ensure your routes account for Hours of Service (HoS) compliance and driver availability—helping you manage retention in this era of talent shortages.
In short, no matter the size of your fleet, a route optimization system gives you a tailored edge, helping you manage your current transportation needs and use strategic route planning capabilities to drive future growth. And the best systems are built using a modular approach so you can add functionality to your solution as your needs evolve instead of paying for modules you don’t need yet. This ensures you have system consistency and familiar support processes while always ensuring you’re equipped with the features you need.
Single vs. Multi-Depot Operations
Your number of vehicles alone does not always represent the complexity of your fleet. Single-depot and multi-depot operations each have unique needs, too.
In a single-depot setup, all vehicles start and end their routes at the same location. For you, route optimization is about improving the efficiency of local or regional routes. By providing advanced mapping data, accounting for historical traffic patterns and allowing for the input of tribal knowledge into customizable rules, an advanced single-depot route optimization system creates highly efficient paths for each of your drivers. This not only reduces mileage and time on the road but also helps you meet customer expectations with timely deliveries.
On the other hand, managing multi-depot operations has its own challenges. A route optimization system centralizes your planning activities meaning you no longer need to dedicate resources at each depot for scheduling and can re-deploy those staff for higher-value tasks. In addition, advanced systems can integrate your entire fleet to optimize routes across depots—maximizing efficiency, cutting empty running and further reducing costs. By balancing the load across locations like this, you can keep deliveries on schedule while cutting down on unnecessary fuel use and vehicle wear.
Find out how the Martin Brower Company eliminated over 5,000 miles per week across its multi-depot distribution operation using route optimization software.
Vehicle Type and Driver Skill Variations
When it comes to route planning, not all resources are created equal. Whether you’ve got a range of different vehicle types or drivers with various skills and certifications, the best route optimization systems account for and optimize using these parameters.
Your route optimization system should intelligently create schedules accounting for specific vehicle attributes like height, weight and length, ensuring compliance with road restrictions and bridge clearances. Advanced systems can also consider specialized needs, such as vehicles with frozen or refrigerated compartments, or the distinct considerations of electric vehicles (EVs). In short, no matter which vehicles your fleet is comprised of, the right route planning software can help you maximize vehicle utilization, reduce delivery delays and do more, with less.
Driver attributes play a key role, too. By factoring in driver considerations like holidays, shift patterns and HoS compliance, route optimization software ensures your schedules meet legal and operational requirements while improving driver morale. Advanced software can also match specific driver skills or certifications—like handling hazardous materials or operating specialized vehicles—ensuring compliance and safety. Even personal requests, like preferred routes or shift times, can be considered to boost job satisfaction. This intelligent resource management reduces scheduling conflicts, ensures regulatory compliance and enhances driver retention, all while maintaining seamless operations and delivering superior service.
Consumer Deliveries vs. B2B Logistics
Regardless of your business type, in today’s markets you must deliver excellent service reliability as efficiently as possible. Therefore, whether you’re a B2C (business-to-consumer) or B2B (business-to-business) operation, route optimization is a great choice.
In B2C businesses, route optimization is about ensuring precision and speed despite high delivery volumes. That’s where a dynamic route planning system shines, ensuring you can reliably deliver exactly when you told your customer you would at the point of sale. The best systems for B2C operations also offer real-time tracking and customer notifications to enhance the consumer experience, boosting satisfaction and loyalty while increasing first time success rates. Now, you can accurately predict delivery times, exceed consumer expectations and boost brand loyalty.
In B2B operations, orders are often larger and tied to strict time windows or entail delivery location restrictions—for example stores within malls where deliveries are only allowed between certain hours, or large construction sites with multiple drop off areas. In these scenarios routing and scheduling systems excel in optimizing multi-stop routes to meet service-level agreements (SLAs), handle recurring orders and provide real-time route execution functionality so you can quickly rectify issues. This practical efficiency helps you save costs and maintain strong relationships with your clients.
Why Choose Aptean’s Route Optimization System?
If you’ve got vehicles on the road delivering goods or services and want to reduce costs, boost service and improve productivity, it’s likely a route optimization system can help. The question now is: which one?
We may be a little biased, but we think Aptean is a clear winner. Our route optimization solution is not only versatile and adaptable, but also remarkably user-friendly. It is designed to seamlessly accommodate the unique needs of your business, whether you’re handling fast-paced consumer deliveries, complex B2B routes or multi-stop service calls. With customers across the world, in a range of different industries and with a variety of fleet setups, we’re confident we have the experience to transform your operations.
Our solution is not just a one-size-fits-all system. It's a precision tool that supports various fleet and route requirements, making it the perfect fit for businesses with diverse logistics needs. The software optimizes routes based on your specific fleet configurations, saving you time and maximizing performance—all while offering a range of service benefits and slashing logistics costs by up to 30%.
What’s more, our software also delivers valuable data insights and strategic capabilities that help improve your operations over time. With its adaptability, you can make informed decisions that continuously improve your logistics. And, with a cloud-first, modular approach, streamlined implementation processes and experienced in-house support staff, you can rest assured that your routing needs are in safe hands, now and in the future.
Ready to take control of your logistics with a flexible, efficient and intelligent routing system? Take a free, online product tour today to explore our advanced route optimization solutions or contact us to discover a more innovative way to manage your routes.
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