The Difference Between Route Planning and Route Optimization

by GetSwift | Jan 6, 2021 | Route Planning Software

In today’s on-demand marketplace, it’s the very last step of the logistics process that is the most critical. The journey from warehouse, restaurant, or store to the final destination is what’s referred to as the last-mile of order delivery, and how you manage this critical function can make all the difference in the success of your business.

When it comes to last-mile delivery challenges, you’ll often hear the terms route planning and route optimization — and it’s even likely that the two will be used interchangeably. However, there’s a significant difference between planning and optimizing, and practicing one without the other could mean significantly higher delivery costs. Here’s what you need to know about route planning versus route optimization.

Route Planning: The Old Way of Doing Things

In simple terms, route planning takes a predetermined list of destinations and puts them in the most relevant and efficient order while primarily focusing on the shortest distance and the fastest time. There are many free route planners out there (such as Google maps) but they can’t handle the variables associated with a complex delivery business.

Route Optimization: A Necessity For Delivery Businesses   

Route optimization, on the other hand, uses a complex system of algorithms to evaluate hundreds and even thousands of variables to create the optimum delivery route. Route optimization software takes into account things such as driver schedules, vehicle capacities, driver coverage areas, and delivery window times to create the best, and most efficient route. 

With the right route optimization software, you can grow your business from one or two drivers to thousands, and you can increase productivity while reducing delivery costs — two more key factors in building a successful delivery business. 

Save Time and Money Through Route Optimization

The main challenge of last-mile delivery is that it is costly. That’s because it involves shipping smaller quantities to more locations. To offset these higher costs, it’s necessary to focus on planning and efficiency and the best way to do that is through route optimization. Here’s a closer look at the benefits of route optimization.

Reduce Transportation Costs

Fuel and labor are two of the most important factors to consider in your logistics cost equation. That’s because a large percentage of your total delivery cost can be attributed to them. Allowing your driver to spend all day on deliveries that should only take a few hours will eat away at your bottom line. And, going just a few miles out of the way for one delivery may not be the end of the world, but when you multiply that by several drivers and dozens of deliveries every day, that extra gas money can really add up. 

Faster Deliveries

Being able to shave time on your deliveries is not only good for boosting productivity, but it also has a positive effect on customer service. If you’re able to deliver goods faster than your competitors, this gives you a distinct advantage and shoppers will choose you over someone else if they know they can get what they want faster.

Grow Your Business

Driver capacity can be a bottleneck for delivery businesses. In order to invest in more drivers and more vehicles, you have to have the capital to support them. A better way to manage this is to first take a look at your current productivity. Is it possible that you could be doing more with the resources you have, without compromising customer service or safety? Route optimization can boost productivity by allowing you to do more, and do it more efficiently. This is the key to unlocking your growth potential. 

Choose GetSwift For Route Optimization Software

Effective and efficient driver routing is one of the most important controllable factors for a last-mile delivery business. If you’re still just putting together route plans based on the location of the destinations, then you’re missing out. Delivery route optimization software can help you account for an unlimited number of variables so that you can crush the delivery business.

GetSwift has developed delivery route management software that will not only help you with managing your driver’s routes but with all of the elements of your delivery business. From dispatching and real-time driver tracking to automatic customer alerts and an easy-to-use mobile driver app, GetSwift offers everything you need to run your business now, and to prepare it for the future.

Check out how our software can help by watching a free demo or starting a free trial today. 

Using Software To Improve Driver Retention

by GetSwift | Jan 6, 2021 | Route Planning Software

Whether you employ a large fleet of cross-country drivers or a small number of local couriers, driver retention is a top priority for many business owners. Experienced drivers are usually capable of delivering more goods in a shorter period of time, increasing your capacity and saving your business money. 

The demand for delivery has been steadily increasing over the past few years, and now with COVID-19, more people than ever before are taking advantage of home delivery services. In fact, 37 percent of U.S. consumers are turning to contactless delivery more than before, according to a Salesforce survey. This means many could be seeing more business through delivery than through their brick-and-mortar stores — as long as they have enough drivers to fulfill orders.

Businesses that are able to keep up with demand during these trying times — and do it in a way that meets customer expectations — will likely come out ahead and grow their long-term customer base well after the pandemic is over. To do this, it’s essential to focus on driver retention and last-mile route optimization software can help you do just that.

Safe Drivers Are Happy Drivers

A top priority for any employer is to ensure that your staff has a safe and secure working environment. This holds true for employees working in an office, a warehouse, a production facility, or driving a vehicle. While you may not be able to prevent all accidents from occurring, you can take measures to ensure your drivers aren’t overloaded with an unrealistic delivery schedule that requires them to work long hours or back-to-back shifts. 

Last-mile route optimization software can help them complete their deliveries faster and more efficiently so they can get more done in less time. A mobile driver app also helps to keep them connected to the office and the rest of the team so if they do run into an issue while on the road, their location can be tracked.    

Work Smarter, Not Harder

Manually mapping routes and managing an ever-changing delivery schedule can be stressful, not to mention inefficient. Constantly having to change routes or update your driver by phone can make an already challenging job even more difficult. By enlisting the help of route optimization software, your drivers don’t have to worry about where they need to go next or the best way to get there. With the right technology, they can receive turn-by-turn directions and real-time route updates, making their job that much easier.

Acknowledge Good Performance

Like most employees, drivers seek acknowledgment for a job well done. Although they may be out of sight and working solo most of the time, it’s important to still track — and recognize — good performance. With software like that from GetSwift, you can easily track KPIs like the number of deliveries per day, percent of on-time deliveries, or customer feedback ratings. Using that data to show your appreciation will go a long way toward helping to retain your best drivers.

Empower Drivers With the Tools They Need To Do a Good Job

In the past, many delivery drivers simply had to pick something up from point A and drop it off at point B. Now, drivers are expected to make multiple deliveries along a route, all at a precise moment in time. If they miss that time buy just a few minutes, it could result in a failed delivery or an unhappy customer. 

With drivers being held to such a high standard, it only makes sense to give them the tools they need to succeed. Last-mile route optimization software can help them find the most efficient routes, communicate unexpected delays with the customer, and protect their reputation with an electronic means of documenting proof of delivery. 

Improve Driver Retention With GetSwift

GetSwift’s last-mile route optimization software is the complete solution for all of your delivery needs. It includes tools for easier dispatching, more efficient routing, and improved communication between your drivers, customers, and your office. It comes with an easy-to-use driver app that will provide your drivers with the information they need at every stage of the delivery process.

Learn more about GetSwift and how our software can help you with driver retention and success in the delivery business — contact a member of our team or sign up for a free 30-day trial. 

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