Route Optimization By Deliveries Per Day: Scaling From 1 To 100,000

A large number of consumers view same-day delivery as an attractive thing, and the demand for it is on the rise. A report from McKinsey reveals that when making a purchase, 48% of buyers consider same-day delivery to be a value-adding extra.

As a result, businesses are now adopting advanced vehicle routing optimization systems. Finding the fastest and most cost-effective route for each delivery is also essential to fulfilling same-day deliveries smoothly.

With modern dynamic routing methods, delivery companies could save up to 20% in mileage and improve their order capacity by as much as 100% without increasing their fleet. They can also greatly improve the customer experience while reducing delivery turnaround times, decreasing logistics costs, and improving the entire delivery planning process.

In this article, we will show you how to improve your vehicle routing optimization system to empower you to take greater control of your deliveries and solve the odd vehicle routing problem as your business scales.

Short for time? Here’s a quick summary:

TL;DR

• Route optimization is a route planning technique that uses artificial intelligence to determine the most efficient routes for your fleet operations to take.
• A route optimization tool can scale a business easily and help it meet customers’ delivery demands.
• eLogii is a global technology platform that helps companies provide a seamless “last mile delivery” service. eLogii’s platform manages delivery and field services and can assist you in optimizing your operations and providing a faster delivery speed. 

Benefits of route optimization

Here’s why route optimization is important for delivery businesses:

#1. Reduced maintenance costs

A well-planned route can save money on vehicle maintenance. When routes are optimized, it leads to less idle time, cutting costs, carbon emissions, and vehicle wear and tear.

#2. Improved ETAs

Route optimization allows you to give customers real-time ETAs and confirm delivery times, which relieves unnecessary worry. A tool like eLogii sends customers an SMS with a live tracking link that can be viewed on any web browser or even a mobile device.

#3. Faster delivery times

Everyone in the supply chain benefits from quicker delivery times. Route optimization selects the fastest route for your trucks to ensure delivery times are as short as possible.

With a route optimization software like eLogii, route modifications are simple to handle and can be immediately communicated to your staff – keeping your fleet running at top speed.

#4. Better customer service

Using route optimization software will greatly improve customer service. Reliable service keeps your customers happy and typically results in word-of-mouth recommendations and repeat business.

#5. Reduces human error

Planning a route manually can increase the likelihood of making a mistake, especially if the route is complex or there are many factors to consider. Routing software doesn’t get tired and it doesn’t miss a thing.

Routing optimization solutions for…

Now that you know why routing software is important, here’s how you can use it to scale your efforts as your company grows:

Companies making 1-4 delivery runs per day

Companies making one to four delivery runs per day need to be especially conscious of their routes, as efficiency is key to making timely deliveries that satisfy customers and increase revenue.

These companies might normally opt for manual route planning using Google Maps. However, factors such as traffic conditions, accidents, weather events, and tight delivery windows can make manual route planning very complex. We don’t recommend it, to be honest.

Here are some tips to help you scale your company at this stage:

• Use an automated solution like eLogii that can help you anticipate congestion and plan around it.
• You need to be able to see where all of your vehicles are at any one time so that you know which of your drivers is closest to an upcoming pick-up or drop-off location. You also need to be able to see which drivers have delivery availability, as this will help you to enhance and speed up dispatches.
• You need to be able to inform clients of any potential delays caused by traffic. We recommend doing this via text.

Companies making 5-10 delivery runs per day

Companies doing five to ten delivery runs are faced with the challenge of maximizing the productivity of delivery operations and preventing issues like late deliveries, failed deliveries, or deliveries to the wrong address.

Here are some tips to help you scale your company at this stage:

• Use delivery route planning software to reduce the frequency of delivery errors (and their relative error values) and subsequent re-delivery attempts. This software will provide each of your drivers with turn-by-turn directions and an Estimated Time of Arrival (ETA), as well as notify your clients of when they may expect to get their packages.
• You should be looking for tools that facilitate dynamic route planning over static route planning. At this stage of company growth, inaccurate and late deliveries can cost you a lot of business. So you need to be able to adjust while en route.
• You should keep an eye on your drivers and make sure they stick to their schedule by using GPS tracking. This will allow you to pinpoint the source of any delays or snags that are causing your drivers to run behind schedule day after day.

Companies making 10-100 delivery runs per day

If you’re managing a fleet that makes 10-100 deliveries daily, accurate scheduling and driver coordination are essential to your success.

Dispatchers need to know which drivers are available when a delivery has to be made, which available drivers can make that delivery in particular, average distance matrix values, and the quickest routes to your delivery points. They also need a constant high-level overview of how their fleets are doing.

Here are some tips to help you scale your company at this stage:

• Manage your drivers’ time more efficiently using an optimal solution for route planning that allows you to customize drivers’ profiles and assign drivers to deliveries based on their skills.
• Use a delivery management system to analyze traffic flow, determine the most efficient routes, and keep everyone in your fleet up to date on the latest developments.
• Set up a consolidated dispatch dashboard for real-time order monitoring, monitoring of actual distance values, improved delivery scheduling, and better resource allocation.
• If certain drivers know specific locations better than others and can get about quickly and efficiently, give them those routes. At this point, you need to assign tasks based on drivers’ skills.

Companies making 100+ delivery runs per day

Companies doing 100+ delivery runs per day need to have a more well-rounded approach that can be molded to fit the business’s service and profit goals as they change. Developing an approach like this means addressing the delivery needs of your customer base while practicing cost-saving.

Here are some tips to help you scale your company at this stage:

• Group deliveries into clusters. Consolidating trips of a similar nature helps drivers save time and fuel. If you have five deliveries in the same area, for example, do them all at once and then move on to another suburb.
• Use reporting and analytics tools that help you calculate route planning metrics like average distance values between stops and the calculated gain value of choosing a particular delivery route.
• To make the most efficient use of your fleet’s storage space and load capacity, you should thoroughly evaluate each vehicle before allocating jobs. You should also consider the types of roads each vehicle drives – big trucks have poor fuel economy when they need to stop at traffic lights regularly, for example.
• Get your drivers familiar with the schedule of their delivery stops ahead of time so they can help dispatchers load the vehicle efficiently.
• Routing software can be a huge help in determining the most efficient path. With the help of such technologies, you can map out the quickest and cheapest path possible, cutting down on delivery times, expenses, and vehicle routing problems.

Companies managing delivery runs across multiple cities or states

If your company operates across numerous states and cities, you need delivery route optimization solutions that work on an automated basis so you can manage your fleet remotely. Missing deadlines can reduce customer satisfaction and cost you money in the long term, so companies at this stage should always put customers first. Also, you should keep an eye on the efficiency of your drivers and ensure your workforce is well-trained and motivated.

Here are some tips to help you scale your company at this stage:

• The use of multi-stop route planners can be quite helpful in determining the most efficient routes between multiple cities or even multiple states. A customer’s preferred delivery time window, the overall cost of the trip, the coordinates of the dispatch and final destinations, and other actual input data are all factored into the ETA calculations used by transportation route optimization software. It’s best to automate ETAs when you are dealing with multiple cities – it’s a waste of time to make these calculations manually.
• Take advantage of local expertise when making deliveries in distant cities or states. Get the lowdown on the best routes to take and any obstacles you could encounter from local drivers and team members.
• Set up systems that don’t require oversight from a human. This way, the system can discover the best possible route configuration and assign it to individual fleet units on an as-needed basis.

Tips for scaling your delivery runs

No matter the size of your company, these tips will help you scale your delivery efforts and grow:

#1. Use a delivery management system like eLogii

What is eLogii?

eLogii is a cloud-based route optimization software that assists Small and Medium-sized Enterprises (SMEs) and large corporations in the retail and distribution, logistics, post and courier, field service, healthcare and pharmacy, eCommerce, food delivery, and logistics fields.

eLogii is the ideal solution for companies that value delivery efficiency, handle numerous client orders daily, and, most importantly, prioritize customer satisfaction.

Features:

• Automatic route planning and optimization for your field service or delivery tasks.
• iOS and Android driver apps with live task ETAs, real-time driver tracking, and automated task status updates.

• Electronic Proof-of-Deliveries (ePODs) with barcode scanning, signature capture, photos, and customer feedback collection options.

• Smoother customer interactions with SMS and/or email notifications.
• Numerous methods for dealing with unsuccessful deliveries, including allowing the driver to leave the package in a secure location, return it to the depot, or leave it at another location.

Pros:

• eLogii offers a vast range of sophisticated routing choices like return-to-depot, multi-day, multi-stop, and dynamic routing.
• eLogii has a vast number of programmable parameters (e.g., late or early delivery tolerance, vehicle capacity optimization, driver skills to match tasks to the best agents, custom start and end points, and flexible tasks).
• eLogii helps you track drivers and vehicles in real time with vehicle live tracking.
• eLogii offers a live chat feature for seamless communication with customers and drivers.
• eLogii has a top-notch API with a wide range of integration options.

Cons:

• eLogii doesn’t offer a free trial (although you can request a free demo).
• eLogii is newer than many competitors.
• eLogii’s filters can be a little difficult for new users.

Pricing:

eLogii is quite flexible with its pricing, which makes it a perfect choice for small, medium, and large companies.

eLogii comes with customized pricing plans based on your specifications and needs.

eLogii’s plans include:

1. Starter – Which includes 2,500 tasks a month.
2. Premium – Which includes 8,500 tasks a month.
3. Professional – Which includes 40,000 tasks a month.

Use cases:

eLogii has the highest level of functionality, customization, and readily accessible solutions out of all delivery services. It serves small, medium, and large enterprises of all types.

With eLogii, you can handle many, many orders and customers daily, embrace delivery efficiency, and customize it to meet your needs with special features.

Interested? Book a demo of eLogii.

#2. Have clearly defined responsibilities for each employee

When it comes to scaling a business, it isn’t about throwing more people at the problem. Rather, it’s about hiring the right people and enabling them to do more by clearly defining their responsibilities and giving them the tools they need to succeed.

You must ensure you employ the right people at each stage of the delivery process. Keep an eye out for bright individuals in areas such as fleet management, logistics, and last-mile deliveries.

Most importantly, you must have people’s roles spelled out for them so that they know what they need to do every day.

Designing a professional onboarding procedure that teaches new hires how to handle actual work situations is also advisable.

#3. Develop standardized procedures that can scale

It’s very important to determine what steps and strategies your company should follow so that it can scale long-term.

You need to develop Standard Operating Procedures (SOPs) that everyone can follow.

Simplicity is a key component when designing a process because complex processes might ultimately slow down the whole process (plus, complex processes are harder to learn).

You should also leverage automation wherever possible. Automation can help you eliminate errors while also scaling up delivery processes.

#4. Use telematics to monitor your fleets

Numerous software programs have been developed to organize and enhance delivery management and fleet vehicle operations. Telematics is a big part of many of these programs.

Telematics allows you to create delivery schedules that span a large area and monitor fleet vehicles in real time. You also get access to a lot of information in real time.

Telematics significantly improves customer service while decreasing overall vehicle idling time – conserving fuel and reducing your environmental impact.

Telematics systems can incorporate maintenance plans and mechanical repairs into your daily operating procedures. Regular maintenance can cut down on vehicle downtime and breakdowns. You’ll also save money on towing fees, lifetime car repair costs, and driver downtime.

Final thoughts: Vehicle route optimization system

These tried and true methods will help you grow your delivery business and run your operations more efficiently.

Effectiveness, thoroughness, and automation are vital to scalable businesses, so make sure you invest wisely.

The route planning tool you choose will wield a lot of power and control over your business. It can expand your operations to multi-drop deliveries, boost productivity, cut down on unnecessary fuel mileage, and provide accurate driving instructions.

Ultimately, route optimization will reduce operational expenses while boosting customer satisfaction.