The Importance of Route Optimisation

Getting a given shipment from one place to the next is a precise art. Over recent years, it’s gotten increasingly sophisticated – to the point that same-day delivery is now expected by many.

In the logistics industry, every second matters. Anything that can be done to cut shipping times will translate into an advantage over the competition – even if the gains are marginal.

For road hauliers, the number of potential routes available might be extraordinary. So, how do we choose what’s best? Through a process called Route Optimisation.

What is route optimisation?

If you’ve already decided where you’re going, route optimisation is the process of deciding how best to get there. The route where the business looking to reduce costs isn’t always easily calculated. You can’t just consider the distance between the various stops.

You’ll also need to account for the density of traffic and the number of times a vehicle might have to cross traffic. You’ll need to think about the number of intersections, the availability of the driver, and the ease with which you can make a given stop when you’re approaching it from different directions.

Factoring in all of these variables is only possible thanks to an accumulation of data sharing and the technological tools we can bring to bear on that data.

The Role of Route Optimisation

Modern route optimisation makes heavy use of machine learning algorithms. These algorithms have been exposed to hundreds of thousands of real-world routes and the time taken at various stages along the way. If you want to determine how long a van will be waiting to turn right at a given junction at a given the time of day, then the right data-led platform will be able to provide a reasonable guess. Not because it has analysed the problem but because it has seen thousands of other answers.

Of course, this kind of solution is only possible when the quality and quantity of the data going into the system is sufficient. It’s only in recent times that this has become so.

Main benefits of route optimisation

You might wonder why all of this matters. The fact is that the logistics industry is more competitive than ever. Customers expect their hauliers to be able to provide excellent, speedy service – and they will rarely remain loyal to a company that falls short of this expectation.

Route optimisation is effective for dealing with the notorious ‘last mile’, where many small businesses fall short. Drivers might have experience dealing with motorways and major roads – it’s only in cul-de-sacs and remote country estates that the driver’s experience falls short. With the help of the right route optimisation, you might find that those small delays are all but eliminated!