21st-century enterprises that were smart enough to sell their products on the internet have benefited a lot from the recent upsurge in online shopping. These businesses are now looking to reduce human dependency wherever possible.
However, actions like optimizing on-ground operations or streamlining delivery processes won’t help these businesses establish themselves as cost-efficient entities in the long run. Part of that is due to the rising fleet management costs for online businesses.
Modern-day online shoppers are also extremely demanding. They demand same-day deliveries, constant order tracking, and various other facilities from their online sellers. Thankfully, the best logistics software tools help them address these demands relatively easily. With these tools, it’s easy to automate logistics activities and save time and money. Currently, the most advanced logistics software tools offer features like –
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- Fuel Management – Monitor entire fleet operations with advanced logistics software tools to strategically cut down operating costs and increase profitability wherever possible.
- Route Management – Know trip expenses in advance as you set predefined routes for your trucks to follow. Preventing excess consumption of fuel becomes much easier with such fleet maintenance features.
- Vehicle Management – Collect and review important information like GPS-vehicle tracking data, drivers’ training needs, renewal details of vehicle permit, etc., on easily accessible digital platforms. Avoid compliance issues like non-renewal of important documents to clamp down on unnecessary organizational costs.
- Payment Tracking – Payments by expenses cards can be easily tracked on the logistics software system before/after each trip made by the drivers.
- Vehicle Tracking – Obtain real-time data about your vehicles’ movements with the GPS vehicle tracking systems on the logistics software system. Business administrators can essentially know exactly where each vehicle in their fleet is at all times.
- Conduct Timely Maintenance – Set clear maintenance-related parameters based on vehicle models and the distances covered by the drivers. Whenever one of your vehicles needs maintenance or repairs, the logistics software system will notify the operators.
Supply chain administrators can now combine these features to optimize the routes their vehicles take and cut down even more costs.
What is Route Optimization, and How Can Logistics Software Systems be Used to Carry Out this Process?
As stated above, the best logistics software tools already have all the fleet management features businesses need to optimize their supply chain routes. Route Optimization is the simple process of figuring out the most efficient routes to final destinations. It’s not just about finding the shortest route between locations X and Y. It’s about finding the “best” routes.
What are the “best routes”? Well, for online businesses, that depends on multiple factors –customer locations, delivery points, locations of the drivers who are closest to the delivery spots, etc. Thankfully, modern businesses don’t have to depend on manual processes to optimize their supply chain routes.
The most advanced logistics software tools already have the features to provide various route options that can be assessed and optimized (by human operators) to rein back operating costs, save time, and expand workforce productivity.
Optimizing Supply Chain Routes – How and Why Can Businesses Do It?
Businesses that already use the best logistics software tools can easily use their software’s in-built features like fuel management, route management, vehicle management, vehicle tracking, payment-tracking, etc., to find the most cost-effective routes between any two points on their supply chains. These software tools already come with in-built fleet management features that allow them to monitor all aspects of their fleets.
Using these features, supply chain administrators can easily create customized route management systems to achieve cost control, guarantee timely deliveries, increase revenue incomes in the long run, reduce the risk of vehicle breakdowns, and of course, optimize the routes their vehicles take on a day to day basis.
Why should businesses optimize their supply chain routes? Well, ever since the COVID19 pandemic accelerated the already super-swift growth of eCommerce, the costs of logistics have reached record-breaking highs. In 2020, the global spending on logistics was close to $1.652 trillion, an increase of 11.4% compared to 2019.
It’s clear that businesses need to keep their costs in check while meeting unprecedented levels of customer demands. Route optimization is the easiest way of achieving this goal because –
- Route Optimization Cuts Fuel Costs – The cost and time savings businesses gain by optimizing their supply chain routes significant. Businesses can save 20% to 40% of their annual fuel costs just by planning routes that are extremely efficient.
- Optimize Multi-Stop Routes – Since the most advanced logistics software tools offer real-time GPS tracking features, administrators can instantly generate optimal travel routes for their drivers, no matter how many stops they make along the way. Assigning tasks to conveniently located drivers within specific hours also becomes easier when you’re using your logistics software tool’s GPS tracking features to optimize routes.
- Make More Deliveries – Route optimization efforts help drivers the most. They don’t have to deal with over-scheduling issues anymore. With lower risks of burnouts and overtime, driver efficiency and performances also improve.
Optimized routes are faster, cheaper, and more efficient for every member of the supply chain. It’s high time businesses start leveraging their logistics software tools to create these simple yet effective route optimization strategies.
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