Whether a company sends out dozens of trucks a day or only a few, route planning systems are essential to maintaining an efficient supply chain.
A good route planning system allows a company to input data such as the number of trucks in its fleet, delivery destinations, truck metrics (size, weight, capacity, etc.) and more in order to calculate the most efficient routes to be taken. It’s data configuration at its best, and it can help keep costs for shipping low.
Who doesn’t want lower costs?
The Perfect Example
Still not convinced of the efficacy of route planning systems? Take a look at how analyzing simple data metrics can work wonders for a company.
In 2004, UPS announced a policy that was quite baffling to everyday people: their drivers would no longer be making left-hand turns.
Have you ever tried getting from one place to another by only turning right? It may seem like a crazy idea, but it paid off big time for the delivery company. By carefully crafting routes that allow drivers to only make right hand turns (most of the time), UPS was able to save about 10 million gallons of gas and reduce its emissions by the equivalent of taking 5,300 cars of the road for an entire year.
The science behind it is simple. Making left turns often forces trucks to remain idle and usually increases the amount of time it takes to make deliveries.
The shortest route isn’t always the quickest.
Simple Ways to Lower Shipping Costs
If you are looking to create a better budget for your business, employing a route planning system to curb the costs of shipping can go a long way.
Route planning systems help companies save money by:
- Automatically calculating efficient truck routes and multi-stop schedules that reduce miles traveled, saving on gas, truck maintenance and other costs.
- Optimizing routes to decrease delivery time (which increases customer satisfaction).
- Automatically updating routes as new orders are placed.
- Tracking vehicles and changing routes based on weather, construction and other traffic conditions.
- Providing detailed performance metrics that help companies create and implement new KPIs and strategies.
Choosing to employ a route planning system can have a positive effect on fuel costs, customer satisfaction and other logistics strategies.
It’s Not All About the Technology, but How You Use it
A company can receive and implement a route planning system, but if not used properly, it can potentially go to waste. At King Solutions, we offer top-of-the line logistics services to our clients that go far beyond the use of route planning systems.