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5 misconceptions about route optimization

5 misconceptions about route optimization

5/7/2023
Patrick Okkersen
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The ideal route: it's an indispensable part of the perfect delivery process. But how do you find it? Okay, that's a no-brainer. Indeed, with software.

But which one do you choose? How do you implement it as smartly as possible? And what are the consequences for the rest of your operation? These are all important questions, which we will answer by addressing five misconceptions about route optimization!

1: Route optimization is all about the best algorithm

Are you looking for suitable delivery software? Then you'll inevitably be bombarded with promising slogans. 'Our algorithm is 10% better than the rest'. And more similar nonsense. This is simply not possible. There are differences, but they are negligible. We conducted research on this. We compared various algorithms, and with the same input, the outcome is virtually identical. Always under 2%.

The difference lies in the input method. How do you configure the algorithm? Many systems are 'simplistic' in their orientation. In other words: they primarily look at time and mileage and calculate the cheapest route based on that. But of course, there are many more factors that could be important to you. What about sustainability? Or the customer experience?

2: Historical traffic data improves your planning

Sometimes you have to weigh efficiency against reliability. Because if you ask Google Maps now how long it will take to drive from Amsterdam to Schiedam tomorrow morning? Then you'll only see the minimum and maximum travel times, with, for example, a difference of half an hour. Most traffic jams are, after all, unpredictable. Let alone their duration and impact. If you account for this with every order, it can come at the expense of your efficiency.

Are you sure you always experience the same delay at a specific location? Yes, then it's smart to adjust your planning for it in advance. But if you're unsure and still unnecessarily schedule an extra fifteen minutes for five stops? Then you're easily wasting 75 minutes of an entire workday. What a waste! Then it might be better to schedule extra stops and know that you're usually on time, but sometimes just a little late.

We advise you to opt for software that continuously adjusts your delivery route. Based on historical and real-time data.

3: Manually optimizing routes is a must

Still manually determining the order or placing that one stop in a different route. Is that smart? Well, it's mainly time-consuming. Especially if you do this for multiple routes. Moreover, it's unnecessary, because the algorithm should take this over from you. All your preferences should be automatically taken into account.

So, loading items into your vehicles based on size or weight? Possible. Avoiding rush hour and handling distant areas first? Also possible. The order of the trip is determined by factors that *you* deem important. But automatically!

At least, if you have the right data and all settings are correct. Then you can let the system handle everything with a single click. Great, right?

4: Route optimization has little impact on the rest of my operation

Are you thinking 'Great, give me one of those fancy algorithms'? We get it. After all, it results in significant time and cost savings. For example, consider the ideal distribution of departure and return times, which creates a 12% reduction in hours.

But don't underestimate the impact on your current operation. Route optimization álwáys goes hand in hand with significant measures. For example, is your staff planning ready for this? And by that, we don't just mean your HR system, but also your people.

Can your warehouse have everything ready on time? And more importantly: are your delivery drivers willing to be deployed more flexibly? In short, realizing the promised optimizations by the algorithms is sometimes harder than you think. But fortunately, not impossible either.

5: The more often you inform the recipient, the better

The ideal delivery includes as many notifications as possible. Because your customer wants to know when their delivery will arrive, right? True. But no one wants to receive too many notifications for a single order. That's simply annoying, and eventually confusing too.

Information must be reliable and tailored to what your customer wants. That's why we offer an innovative Track & Trace system that allows you to follow the delivery driver live. You can even make changes at the very last minute, without the recipient experiencing any inconvenience. Aim for that wow moment at the door!

Discover the benefits of RoutiGo

Did you know that RoutiGo's algorithm is 15% better than the rest? Just kidding, of course. We'd be happy to show you why our delivery software *is* the right choice during a free demo. Schedule it here!

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