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Why Route Optimization is Critical for Efficiency

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We all remember the days of logistics when we had to rely on a physical map, verify fleet availability, check driver schedules, and monitor excessive fuel expenditures.

In recent years, these practices have been slowly phased out. Why? Because technology has brought us a long way since then. Advances in our industry have allowed us to work more efficiently, thanks to route optimization.

What is Exactly is Route Optimization?

Route optimization is the process of determining the most efficient and cost-effective routes. Contrary to popular belief, this may not always mean the shortest route between two points. That’s because route optimization technology has the ability to process multiple ‘what-if’ scenarios and choose the route that best suits your cargo.

Route optimization uses advanced computer algorithms that takes seconds to process the amount of information that could take a human all day to figure out. It takes into account various scenarios including, but not limited to, the number of intersections, left turns, congestion and high traffic times along the route.

Benefits of Route Optimization

Effort Minimization
The most obvious benefit of route optimization software is the amount of work that it saves compared to manually planning a route. As technology continues to advance, it is just not feasible or cost efficient to try to manually plan routes and manage a fleet.

Real Time Traffic & Weather
Traffic incidents and inclement weather are two circumstances that can significantly impact a route and can create a logistical nightmare. Route optimization software is able to con-stantly collect real-time traffic and weather situations. These can re-route as soon as a traffic incident has taken place.

Return on Investment
By and large, the return on investment quickly pays for itself. The amount of time it takes to manually plan routes is quickly recouped in the immediacy that route optimization can do the same task. Plus, this expedited timeline is also more cost effective.

The TOC Logistics team is proud to offer supply chain management solutions to help you and your business thrive. Are you interested in learning more? Reach out to a team member today.

05 Sep, 19

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