More households are getting deliveries than ever, thanks to the rise of online shopping and the fast-growing takeaway delivery market. Since 2014, sales in the courier industry have gone up by 62%. This growth is expected to continue over the next five years.
The online grocery market is also booming. Average weekly sales have more than doubled since 2010. While the courier industry is thriving with rising demand, many delivery companies still use outdated methods for route planning.
Indeed, better route optimization tools are now available. Yet, drivers are still assigned routes based only on postal codes. This is one of the least efficient ways to plan deliveries. But why are postal code-based routes so ineffective, and what better options are available?
Drivers are usually assigned a postcode and expected to complete all the stops within that area. While it might seem easy to assign postcodes and move on, does this approach make things harder for drivers?
This method leads to uneven workloads. When deliveries are assigned based only on postcodes, there’s no way to ensure that each driver has the same amount of work. Some postcodes might have more stops than others, which means workloads can vary a lot from day to day.
This inconsistency creates challenges for companies too. They may struggle with paying drivers fairly—risking overpaying, underpaying, or creating pay gaps between employees. On top of that, managing these unpredictable workloads adds even more pressure in an already tough job market.
With postcode-based routes, drivers have no way of knowing when they’ll finish their shift. The unpredictable nature of these routes makes it hard to plan when they’ll be back home.
Drivers don’t know if their day will be busy or quiet until they receive their route in the morning. If their assigned postcode has more stops than usual, they’ll have to work late. The problem is they won’t find this out until they show up for work.
While knowing a postcode area can help drivers get comfortable with their routes, it can become a problem if the driver is absent or a new driver takes over. In these cases, routes need to be reassigned, which can hurt productivity.
Being familiar with the area doesn’t guarantee smooth trips. Roadworks, accidents, and other delays can still disrupt the route and make the journey unpredictable. When routes are planned without relying on postcodes, there’s no need for drivers to know every detail of the area. This approach leads to much better results.
With eLogii route optimization software, multi-stop deliveries are assigned automatically based on the most efficient route between stops.
Drivers do not have to worry about circling the same neighborhood with a random number of stops. Optimized routes help them avoid traffic and move smoothly from start to finish. These routes consider far more than just postcodes.
Using route optimization software also eliminates the need for manual planning. It ensures that workloads and working hours are distributed evenly. So, drivers and employers don’t have to worry about big differences from day to day or between drivers.
Drivers may not become as familiar with specific areas as they would using traditional methods. Yet, the increased productivity from optimized routes makes up for this.
eLogii also allows you to assign tasks based on specific skills. You can ensure that only qualified drivers handle jobs that need special expertise.