How Route Optimisation Boosts Your Business Profitability

As same-day or faster deliveries take the spotlight, businesses are turning to modern optimisation tools to enhance delivery planning and reduce the time packages are in transit. The benefits of such tools can be seen in all areas of your business, from logistics to enhanced customer service, worker satisfaction, and more.

What Is Route Optimisation?

Modern route optimisation tools leapfrog the traditional practices of route planning by using data science to gather details about your business, your customers, and your routes. These details include:

  • Road conditions and traffic
  • Driver preferences
  • Geo-fencing locations
  • Package size and weight
  • Shipping volume
  • Curbside delivery

A modern route optimisation tool uses this information to optimise your package delivery network to increase your business profitability. This means that it tweaks your routes to minimise delivery times while minimising the number of stops and wasted miles.

How Does Route Optimization Boost Profitability?

1. Improved Revenue

Your profitability can be increased in a variety of ways. Improved delivery times can lead to increased customer satisfaction and decreased customer complaints, meaning you avoid the adverse effects of poor customer reviews or social media mentions. This can increase revenue as customers are more likely to use your business again.

2. Enhanced Tracking

When your package is scanned as it enters or exits the geofenced area, it can be automatically marked as delivered or not. This eliminates the need for manual checks and the risk of misdelivered packages.

3. Reduced Delivery Turnaround-Time

By reducing the time it takes to deliver your packages, you can improve your turnaround time, get more orders out the door, and increase shipping volume. This can lead to higher profits as you eliminate wasted time.

4. End-to-end Ground Level Visibility

By using real-time information about your customer’s order and shipment, you can also provide an end-to-end level of visibility, from the warehouse to the final delivery. This visibility can be used to improve customer service by providing order updates and pre-arrival alerts to customers.

5. Addresses The Travelling Salesman Challenge

For many companies, the Travelling Salesman Problem is a real concern. It refers to the complex route problem of finding the shortest route to visit several destinations. With modern optimisation tools, you can reduce your transit time and mileage, saving time and fuel costs and cutting the amount of spinning your tires.

6. Shrinks Carbon Footprint

Efficient routes will cut your carbon footprint. More efficient routes mean that you carry fewer packages per route, which means using your fuel and your vehicles more efficiently.

7. Boosts Customer Experience

You can use route optimisation to route deliveries efficiently, which means providing better customer service and lower overall delivery costs. This means you can offer your customers a better customer experience and increase customer loyalty.

Conclusion

Route optimisation tools are becoming more advanced and more widely used, with their ability to leverage data and their usefulness in making routes more efficient and boosting your business profitability.

If you would like to learn more about route optimisation tools and how they can help you boost your business profitability, we’d love to hear from you.

At SolBox, you can grow and scale your logistics business easily and effectively with our route optimisation, digital delivery and driver safety check solutions. Improve workflow, remove inefficiencies, and intelligently allocate resources to reduce your cost to serve with our fast and flexible technology solutions. If you’re looking for route optimisation software in Australia, we’ve got you covered! Get in touch with us today and let us know how we can help!

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