What is route optimization?

For fleets, efficient routing operations and on-time deliveries are critical to customer satisfaction and profitability. As much as 97% of consumers believe that on-time delivery is essential to their overall shopping experience. Achieving this level of speed and accuracy requires the right tools, however. That’s where route optimization software comes in, helping fleets operate more efficiently while significantly reducing operational costs.

Whether you manage a small local delivery business or oversee complex logistics operations, you can save time and fuel costs while delivering a better customer experience through more reliable delivery operations. In this guide, we break down the benefits of using route optimization software, and how a modern routing and navigation platform like Samsara can help you save time and money by transforming your routing operations.

What is route optimization software?

Route optimization software helps fleets plan the most efficient routes for vehicles making deliveries or service stops based on various real-world constraints. By analyzing multiple factors such as traffic patterns, vehicle capacity, driver schedules, and more all in real time, fleets are able to automate the route planning process and determine the most cost-effective route for their delivery drivers. 

What are some common challenges in route planning?

Your customers are depending on your organization for accurate ETAs and dependable delivery times, but even the most well-planned routes encounter hurdles that can impact efficiency and reliable delivery time windows. Poorly planned routes could lead to downtime, inefficiency, and missed deliveries, ultimately impacting your customer satisfaction and bottom line. Here are a few common challenges that fleet managers may potentially encounter in their route planning:

1. Traffic and road conditions

Unpredictable traffic congestion, accidents, and road closures can disrupt delivery schedules. Without access to real-time data, drivers are more likely to encounter delays that interfere with the day’s route, causing inefficiency and slowing down delivery services.

2. Last-minute order changes

Customer requests often fluctuate with little notice due to changes like cancellations, new orders, or updated delivery addresses. These sudden shifts require routing software that can adapt quickly. Fleets need flexible route plans that can seamlessly accommodate route changes without slowing down their delivery operations.

3. Manual planning processes

Many organizations still rely on spreadsheets or manual processes to plan routes and assign deliveries. This approach is time-consuming, prone to human error, and doesn’t scale well. It also makes it difficult to optimize for multiple factors like traffic, delivery time windows, or driver availability. Today, modern route planning software is powered by cloud technology, making it possible to digitize the routing planning process. 

4. Poor communication with drivers

Disconnected communication between dispatchers and drivers, such as phone calls, unlogged texts, or paper-based proof of delivery documents, can result in miscommunication, missed stops, and inefficient handoffs. Without integrated routing software, it’s difficult to ensure alignment across delivery drivers and the back-office team.

5. Higher costs due to inefficient routes

Poorly optimized routes lead to excess mileage, more fuel consumption, and increased wear and tear for the delivery vehicle. These inefficiencies translate into higher operating costs, particularly when delivery trucks run empty or need to backtrack to missed stops.

6. Lack of real-time visibility

When dispatchers can’t see where vehicles are in real time, it’s difficult to proactively manage issues or provide accurate ETAs to customers. Limited visibility makes it difficult to track delivery drivers along their route and provide customers with accurate delivery times. 

How does route optimization work?

To address these challenges with route planning, route optimization solutions use innovative technology such as artificial intelligence (AI), optimization algorithms, real-time data processing, and user-friendly interfaces to design the best route for your delivery services. Instead of using a mapping software like Google Maps as a route planner, route optimization software considers various factors to design the best possible route. Some of the factors route optimization software analyze include:

• Delivery addresses or service locations

• Time windows for multi-stop routes

• Vehicle capacity and types

• Driver availability and schedules

• Live traffic, weather, and road conditions

• Priority levels or delivery types

• The shortest or fastest routes

• The least fuel-intensive path

• The best driver-stop combinations based on distance, delivery times, and capacity

For example, Samsara’s route optimization solution allows you to include up to 20 stops and automatically determine the most efficient stop sequence to minimize drive time. Samsara analyzes which order of stops yields the shortest distance traveled, making it possible to improve route efficiency and accelerate delivery times.

Benefits of route optimization software

Route optimization software helps businesses maximize efficiency by streamlining the process of planning the fastest and most cost-effective routes. Here are a few of the top benefits:

1. Real-time traffic insights: Route optimization software uses live and historical traffic data to help drivers avoid traffic congestion, road closures, and delays. This results in more accurate ETAs, fewer late deliveries, and reduced idle time, especially in busy urban areas.

2. Vehicle capacity optimization: By accounting for vehicle size, weight limits, and cargo capacity, route optimization tools maximize load efficiency and reduce the number of trips required, saving on fuel and labor while ensuring compliance with load restrictions.

3. Dynamic route adjustments: Using GPS tracking and real-time driver inputs, routes can be automatically adjusted to account for traffic changes, cancellations, or new job requests, making it possible to quickly update route plans and adapt to route changes.

4. Lower fuel and maintenance costs: Smarter vehicle routing leads to less driving time, reduced fuel consumption, and fewer mechanical issues, reducing operating costs and vehicle maintenance.

5. Fewer missed deliveries: Optimized routes, which include last mile delivery and multi-stop routes, reduce the chance of missed deliveries. In the event that deliveries do fail, dispatchers have full visibility into route history and vehicle location, making it easy to reschedule deliveries for another time. 

6. Improved driver productivity: Routing solutions design optimized routes with fewer surprises and more streamlined routes, so drivers are able to complete more jobs in less time. This results in improved driver efficiency and driver retention. 

7. Higher customer satisfaction Fast, on-time deliveries and consistent ETAs lead to a better customer experience. Businesses that have reliable delivery services are more likely to earn repeat business and maintain strong customer loyalty.

8. Better data and reporting: Route optimization tools track performance metrics like travel time, stop duration, and route efficiency, unlocking data-driven decision-making across your delivery operations. 

Smarter, easier routing with Samsara’s routing and navigation solutions

Samsara’s routing and navigation solution is an end-to-end routing software that enables fleets to reduce cost and improve safety, compliance, and customer satisfaction. Samsara’s Route Planning, Route Execution, and Commercial Navigation functionality makes it possible for fleets to unify route planning, dispatch software, navigation, and telematics for deeper insights, proactive decision-making, and a competitive edge. Some key benefits include:

• Improved reliability and ease of use: Samsara's modern UI simplifies training and boosts efficiency, ensuring your operation never misses a beat. All backed by a 99.99% uptime SLA and the highest rated app by professional drivers.

• Optimized routes: Cut fuel consumption, minimize vehicle wear, maximize fleet utilization, and improve worker productivity with optimized routes tailored to your organization's operational priorities.

• Increased customer satisfaction: Deliver exceptional customer service with on-time deliveries and build trust with live order tracking if exceptions occur. Keep drivers and dispatch in sync with consistent ground truth, ETAs, and navigation paths. You can also track performance over time to refine routing, train drivers, and improve operating procedures.

• Reduced distractions: Combine navigation and Hours of Service into a single, distraction-free interface; no more app-switching. Samsara navigation accounts for vehicle restrictions like height, weight, and hazmat. Drivers have peace of mind that they are on safe and compliant routes, all within the Samsara Driver App—the highest-rated by drivers on Android and iOS.

To learn more about how Samsara can help you transform your routing operations, explore our routing and navigation solution and reach out to our team today.