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Starting June 1st, 2023 Our warehouse fee will be $0.65/cubic foot per month

In effort to lower the warehouse storage fee during inflation, we have went narrow aisle racking.This construction took us four months but the project is finally completed. With narrow aisle racking, we are able to drop storage by 24%.We as partners will go through this inflation together.

Starting June 1st, 2023 Our warehouse fee will be $0.65/cubic foot per month

In effort to lower the warehouse storage fee during inflation, we have went narrow aisle racking.This construction took us four months but the project is finally completed. With narrow aisle racking, we are able to drop storage by 24%.We as partners will go through this inflation together.

Blogs/education-series

12/27/2023

127 views

What is route management? The OPTIMAL role and operational management method

    1. What is Route Management?

    Planning and maximizing routes for delivery, pick-up, and service routes in order to achieve optimal efficiency is known as route management.

    They said it well - "time is money" particularly if you own a delivery, pickup, or service company. You will have less time to do tasks yourself or force your staff to complete them if you spend more time organizing routes. Whether it is for field servicing, logistics, or product delivery, having an effective route could significantly boost business growth. 

    A well-functioning route management system helps optimize your company's output while reducing fuel costs. We will delve more into the subject in this blog post to understand what route management is and why it matters for your company.

    2. Do route management and route planning differ from one another?

    Absolutely, in a word. Despite the frequent confusion between the words, route planning and route optimization are two different processes. The main focus of route planning is to design delivery routes that maximize efficiency while taking into consideration the unique needs of each delivery, driver, and vehicle (such as load balance and capacity planning). But route management covers everything from route planning to on-the-road logistics management, including route analysis and continuous strategy implementation to boost a delivery service's overall operational efficiency.

    Even though route design is a significant component of route management, a route manager's job still requires them to maintain the motion of several other moving parts.

    3. What makes route management crucial?

    There are certain expenses that are inevitable when physically moving people and goods: gasoline, driver pay, wear and tear on the vehicles, insurance, and so forth. Companies that provide field services and last-mile deliveries are largely powerless over these expenses. Fuel prices are unavoidable, and wages are under pressure to rise due to a lack of experienced drivers. Regarding insurance and fleet maintenance, there is also little that can be done.

    The only remaining option for couriers, sales and service companies, and delivery operations to increase productivity and cut expenses is through route management. 

    For what reason is that the case? There is only one shortest path between any two locations, despite the fact that there are several ways to get between them. Skilled drivers are usually able to design a point-to-point route very efficiently and are aware of the finest routes and shortcuts in their city. But the challenge of coming up with an effective sequence grows with each additional stop added to a route. When you reach routes with 20 stops or more, the issue practically disappears. A manual route planner could design excellent routes by arranging 20 stops in hundreds of different ways, but it would take far too long to compare them all and determine which one is best. In contrast, an algorithm may compare billions of possible routes and nearly always finds a superior one. It seems unlikely that people would figure out the best routes on their own. As a result, you wind up with longer-than-necessary routes, and each extra mile traveled adds to fuel consumption, wear and strain on the vehicle, and driver time.

    Let's examine the benefits of route management in more detail. 

    4. What is the role of a route manager?

    Planning, organizing, and supervising routes and drivers is the responsibility of a route manager in order to execute deliveries as effectively as feasible. Using the resources (drivers and vehicles) at his disposal, the route manager determines the best approach to serve every customer by considering the volume of deliveries that need to be made and any unique requirements for each delivery.

    Nevertheless, a route manager's duties also include overseeing vehicles while they are in motion from an office or depot. This goes beyond simply creating and sending routes to drivers. It also entails continuous route optimization based on information gathered from field route tracking software and drivers.

    Although it's not always the case, companies with large fleets, such as courier services and eCommerce retail chains, typically assign a specialized route manager to oversee route management. Route management is occasionally handled by the administrators or logistics personnel of medium-sized businesses, as well as by the owners of smaller transportation companies.

    5. What Advantages Does Route Management Offer?

    Companies in a wide range of sectors benefit immensely from route management. By implementing clever route management concepts and utilizing cutting-edge technologies, you can reap significant benefits that positively impact your operations, output, and financial results. The following are route management's three main advantages:

    5.1 Save time

    Time is an essential resource, and efficient route management saves time for organizations in a number of ways. By streamlining your routes, you can cut down on travel distance and the intervals between stops, which lowers idle time and increases output. The best sequence of stops is determined by advanced route management systems using algorithms that take into consideration time frames, traffic patterns, and other factors.

    By removing needless backtracking and detours, you can streamline your operations and ensure that drivers spend less time on the road and more time focusing on important responsibilities. Time savings eventually translates into extra capacity for more service calls, deliveries, or stops in a given amount of time, enabling you to expand your business and serve more customers.

    5.2 Cut down on fuel costs

    Fuel expenditures account for a sizable portion of operating expenses for companies that rely on transportation. Effective route management can help you save gasoline and improve your journeys.

    By designing more effective routes, you can also reduce total distance, get rid of inefficient driving habits, and save money on fuel.

    Tools for determining the optimal routes while taking into account variables like distance, traffic, and vehicle specs are provided by route management software. You may cut fuel consumption and save a lot of money over time by using this kind of routing optimization software.

    5.3 Increased output

    To maximize efficiency in enterprises, route management is essential. Businesses may make sure they run to their fullest capacity by effectively allocating resources, such as drivers, cars, and equipment.

    Businesses may optimize the allocation of drivers to routes based on their availability, talents, and location by utilizing effective route management solutions, which offer insights into resource availability and utilization. 

    Drivers are matched to routes that best suit their experience, which lowers the possibility of delays, mistakes, or inefficiencies and improves efficiency. Furthermore, companies may keep an eye on driver actions by using route management software with real-time tracking features. This helps to ensure that timetables are followed and quickly identify any deviations or bottlenecks. The following are the advantages of route monitoring for your company.

    Businesses may achieve more with the same resources when they maximize productivity, which increases operational efficiency and strengthens their competitive advantage.

    6. What is software for route management?

    The technology known as route management software streamlines and automates a large number of the numerous manual tasks that go into route management. Using routing algorithms, the program plans and optimizes routes for car fleets. It also makes it possible to handle driver hours, customer communications, fleet tracking, and parcel tracking for end users more quickly and easily.

    The goal of route management software is to simplify, optimize, and enhance the effectiveness of a route manager's work. Route management software will pay for itself if you use it to plan and oversee the routes of any number of vehicles in your firm. Since most contemporary route management programs are housed in the cloud, you may quickly and easily set them up remotely and customize them to meet your unique requirements.

    When examining route management software, the majority of the following features should be included; you may use this list as a checklist:

    • Customers should receive email or SMS notifications to stay informed about deliveries.

    • Make email or SMS notification templates.

    • Tell clients when to expect their delivery.

    • Control consumer SMS responses for an improved delivery experience

    • Customer portal for status updates on deliveries

    • Customer portal for real-time package location viewing

    • Maintain continuous email or SMS communication with clients prior to, during, and following delivery.

    • Real-time route and driver map in action

    • White label customer portals and delivery proof documents bearing the company's name and emblem

    • Establish separate dashboards for local managers in each of the delivery centers, and a single dashboard for the superadmin.

    • If needed, make dispatch notes for your drivers at each stop.

    • Organize your orders better.

    • Employees can assure full delivery completion by scanning the barcode on warehouse items.

    • Keep an eye on your orders

    • View delivery operations statistics and provide reports to clients or internally.

    • For a map representation of your delivery activities, use geocode stops.

    • Let drivers designate some stops as undeliverable.

    • Permit drivers to obtain driver reports and take delivery notes.

    • In order to customize your operations, create custom fields.

    • Manifests printed directly from the system

    • Create package labels.

    • Look up delivery dashboards by drivers, stops, routes, or any other piece of information.

    • Examine your client map to make scheduled visits and delivery easier.

    • Options for contactless delivery

    • Use our unique API to integrate SmartRoutes with your current website, CRM, ERP, or digital infrastructure.

    • Permission configurations for every member of your team, including superadmins, depot managers, and drivers

    • Oversee driver breaks throughout the workday.

    • See a live map of all of your drivers and cars.

    • Track the progress of a journey by car or driver

    • Check out the reports on driver performance.

    • Reports that are specific to drivers, clients, or routes

    • Obtain reports about on-time deliveries.

    • Control your team's performance.

    • Check the precise time that each stop will occur.

    • Use an app to automatically track drivers using GPS

    • After delivery, send the consumer a proof of delivery.

    • To prove delivery, drivers might obtain the recipient's electronic signature.

    • Delivered packages can be photographed by drivers as evidence of delivery.

    • Schedule emails to be delivered automatically to recipients after they are finished.

    • Reconcile the proof of delivery data with the ERP system.

    • Automatically create routes using pull-through API information

    • Determine the number of vehicles per route.

    • Route optimization should take into account the weight and height of the vehicle.

    • Decide on time windows for each stop.

    • Based on the magnitude of the load, divide routes among drivers automatically

    • Equitably divide routes among several drivers automatically

    • Organize a zonal group into zones for improved territorial administration.

    • To get from one stop to the next, autodirect drivers to sat nav

    • Modify active routes and immediately update the driver's app

    • Use the SmartRoutes algorithm to optimize your deliveries. It will test thousands of different route variants and determine which one is the most efficient for you.

    • Bring in your database.

    • When necessary, enter individual stops, orders, or clients.

    • Connect your database so that deliveries are automatically retrieved.

    • In order to plan regular deliveries, upload a customer list.

    • Upload product line details for each stop.

    • Schedule routes and assign tasks to drivers automatically.

    • Make ahead plans for your journeys.

    • Keep route drafts for upcoming releases or revisions.

    • Obtain Approximate Delivery Times for your drivers and clients.

    • Using our map interface, manually adjust your routes

    • Determine each driver's start and finish points for each route according to their circumstances.

    • View all route-related information, including duration and distance.

    • Adapt the length of the stop for certain routes or stops.

    7. What to search for in software for route management

    Because route and delivery management software have been around for a while, you should be able to find a reasonably standard set of features and functionality. In the following sections, we'll provide a quick rundown of the fundamentals. 

    7.1 Route optimisation

    When you first see route optimization in action, it may seem magical: all you have to do is submit a list of stops, add some drivers, and press a button to finish creating your route! This is an example of how Routific's route optimization works in practice:

    However, not all algorithms for route optimization are made equal; some provide far more efficient routes than others. We would urge you to give it a try as this is the main distinction between the various apps, and the majority of them provide free trials. Run a standard set of addresses for a multi-stop route in your company through various routing applications, then evaluate the outcomes. What is the overall length of the final routes? Every additional mile adds to the driver's workload and fuel expenses. 

    Additionally watch out for:

    • In the event that you need to add a last-minute delivery or reassign a stop to a different driver, how simple is it to edit routes?
    • Is it possible to define delivery time windows with the app?
    • Could you tell us the capacity of your car? 

    7.2. Message to a driver's smartphone app

    An increasingly important feature is the ability to dispatch a driver with just one click using a mobile app that works on iOS and Android devices. When delivery drivers don't have to worry about clipboards and have everything they need in one location, their lives are made easier.

    7.3 Monitoring and keeping track of

    Route management software has numerous advantages, one of which is real-time GPS tracking. Dispatchers and route managers can easily monitor driver locations, ensure timely deliveries, and make necessary adjustments with the use of timeline and map displays. 

    7.4 Notifications to customers

    Notify your clients by automated SMS or email when their delivery is due, when the driver is out and about, and when it's finished. 

    7.5 Evidence of delivery or completion

    It should be possible to gather signatures or take pictures of deliveries using driver apps. 

    7.6 Reporting

    Payroll runs and end-of-day reports are a snap when all the information you require is gathered in a single route management system via a driver smartphone. 

    8. FAQs of "Route Management" term in transport

    8.1 Is it possible to link route management software with other business systems?

    Many business systems can be coupled with route management software through API connectivity, such as order management, fleet management, and customer relationship management (CRM) software. This connection offers a comprehensive perspective of the company's logistics and customer service procedures, facilitates smooth data transfer, and improves operational coordination.

    8.2 In what ways does route management software help a business save money?

    Using route optimization software helps save costs by maximizing fuel efficiency and cutting delivery times and distances. Effective resource allocation boosts efficiency and allows firms to handle more stops or service visits in a given amount of time. Precise tracking and reporting technologies enable businesses to make data-driven decisions and uncover issues, all while increasing cost effectiveness.

    8.3 What is included in the proof of delivery feature?

    Businesses can obtain verification that a delivery or service visit has been properly performed by utilizing the proof of delivery tool. It entails obtaining digital signatures or shooting images. Proof of delivery has many advantages, including improved accountability, fewer disputes, and precise documentation for effective customer support.

    An essential component for companies that depend on logistics and transportation is route management. Businesses can improve customer satisfaction and operational efficiency by deploying an advanced route management system with numerous helpful features.

    Selecting the appropriate route management software is essential to achieving optimal productivity and observable outcomes. When you use software like Upper Route Planner for your delivery, service, or pick-up companies, the results are significant. It offers dynamic route planning and optimization that increases customer retention rates and helps you save gasoline.

    Simon Mang

    Digital Marketing/SEO Specialist

    Simon Mang is an SEO and Digital Marketing expert at Wordcraft Logistics. With many years of experience in the field of digital marketing, he has shaped and built strategies to effectively promote Wordcraft Logistics' online presence. With a deep understanding of the logistics industry, I have shared more than 300 specialized articles on many different topics.

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