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If Your Delivery Route Planning Operations Are In A Mess

Posted by EdwardWilson in Internet on February 26th, 2019

One of the things that eat up a huge part of transportation costs is delivery fleet operations. This is whether a company operates its own fleet or outsources delivery functions. Unfortunately, despite this observation, many transport providers and fleet operators still conduct their delivery route planning in the old-fashioned way.

For instance, some use rudimentary tools like Excel spreadsheets, which make it extremely challenging to establish if an operation harbors inefficiencies that drive up costs.

Here’s how you can determine if the delivery route planning strategies you’ve put in place are in a mess and therefore need a tech-aided overhaul:

Performance Information and Crucial Delivery Efficiency Is Missing

Performance figures are very hard to come by. This is especially true when you’re rooting with basic tools. Senior executives usually need regular and detailed reports in order to assess a company’s operations in regards to costs and performance.

Some of the key metrics you need to ascertain include:

  • Number of drops per every driver
  • Miles per drop
  • Cost per drop
  • Service levels

The transport department must be able to provide insights to the above areas. Failure to get even the most basic info about the performance of your deliveries is a massive red flag.

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Transport Costs Growing Faster Compared To Revenue

The other red flag you need to be on the lookout for has to do with transport costs. The truth is that the transport department is one of the most important cost centers for any enterprise. Are costs related to transport spiraling out of control? By improving the planning process to mitigate the number of drivers, miles, trucks, and planners, drivers can certainly put a halt on profits.

Companies can be able to obtain important indicators of declines or improvements by closely monitoring transport costs over time and then measuring how they are changing.

Drivers Leaving or Complaining

Is the company having to pay for more driver hours due to unplanned delays? Are some of your drivers always complaining that your planner favors other drivers? Is favoritism or emotion creeping into the process of route allocation? These are just some of the things which can crop up when you plan routes with inadequate tools.

The fact that driver shortage is biting harder than before, drivers are now enjoying large signing bonuses and higher salaries to move. Without a doubt, you need an operation that offers drivers predictable and fair workable shifts that always keep them happy.

Is your current operation undermining this goal? If yes, then it certainly needs a careful look.

Inability To Assess Costs To Serve Clients

Failure to operate with a route planning software means that you’ll be unable to assess costs to serve clients because data on ‘cost to serve’ or cost per drop is either nonexistent or sketchy.

If any of the above signs apply or are true to your company, then it surely makes sense to explore different ways to enhance the efficiency of your dispatching and routing function. An excellent scheduling and routing software takes basic data as well as performs route planning diagnosis, hence modeling the performance improvements and savings you could gain.

An advanced route optimization tech drastically cuts route planning time from countless hours to several minutes. What’s more is that you’re able to spend time evaluating all manner of ‘’what-if scenarios.’’ It can really be handy when it comes to digging deep into how your company’s delivery operations impact your profitability.

Because you’ve systemized every other operation of your business, - order management, warehouse management, payroll, and accounting, - it only makes sense that you do the same to transportation. 

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