Optimised Vehicle Routing – Do you have a choice?January 15th, 2019
Author: Monika Mihir, Product Manager and Logistics Solutions Consultant, CACI
When you have customer deliveries to make, how do you decide which deliveries go on which route and vehicle? Do you have a big map on the wall with pins, using threads to plan the route, or do you do it the smart way – through a computer algorithm?
Operating a commercial fleet is expensive. Every extra vehicle adds driver costs, insurance, fuel costs and more. With the help of vehicle routing optimisation software, the deliveries (and collections) can be completed with minimum resources while reducing the number of miles travelled. Use of a good vehicle routing software solution running a proven computer algorithm can result in substantial cost savings.
Manual routing is difficult
An increase in the number of stops and vehicles drastically increases the number of possible routes, as illustrated.
In other words, it becomes almost unmanageable for a human to consider the best route among all the options. This problem becomes worse when all restrictions and rules (e.g. time windows, vehicle size limit) need to be considered.
Manual routing vs automated solutions
Business rules are complicated, and companies need and want their logistics planners to take those rules into consideration while planning deliveries and routes. Sometimes drivers have their special requirements and sometimes Government regulations need to be considered. In short, the planners must consider lots of things while planning out the routes. This can be a herculean task, taking a lot of the planners’ time. Despite the planner’s best efforts, in most cases the manual routes may not be optimised, or the vehicles cannot be filled to optimum capacity.
Manual vehicle routing can result in:
- Planners spending a considerable amount of their time planning the routes
- Sub-optimised routes, leading to more mileage and eventually more costs
- Sub-optimal routes result in more greenhouse gases emissions, contributing to global warming
- Potentially unhappy customers
- Dissatisfied drivers
With routing optimisation software, on the other hand the users can optimise the routes in the best possible manner with a click of a button. This results in savings and happy planners, customers, as well as drivers.
Do you need vehicle routing optimisation software?
You need an optimised vehicle routing software if:
- You have a fleet of 15 vehicles or more
- You are interested in substantial cost savings (up to 30%) in managing your fleet
- You do not want your planners spending hours planning inefficient routes
- You care about your customers, especially the promises that you make them about service expectations
- You care about driver’s regulations and need to implement them
- You care about the environment and are looking at your carbon footprint.
CACI’s Truckstops software is an easy to use vehicle routing solution that can help you generate optimised routes, in less time, while following all your rules. You will not only save miles but also make your customers and drivers happy.
And most importantly you can expect to save up to 30% on delivery costs.
Deliver the goods and save money: Top three tips
By Paul Dawsey