Logistics and route optimisation have been an integral part of the supply chain for a very long time, with the process of route optimisation taking place all over the world.
In fact, route optimisation has existed for centuries, even prior to the invention of the computer. In ancient times, people used a map and a compass to find the most efficient routes by trial and error. This process was inefficient and was mostly done by human labour; therefore, it was quite expensive. However, technology has since changed the way route optimisation is done.
While you may be delivering your goods to the same destination, you can always try and reduce the number of times that you are doing it in a day by planning your delivery routes. This will reduce the cost of your operation, and also make things much more efficient. In some cases, optimising delivery routes may make the difference between the success and failure of a business.
Route Optimisation and Sustainability: How They Go Hand-in-Hand
Beyond boosting your operation’s productivity by enhancing its day-to-day efficiency, route optimisation can also make your business more sustainable by paving the way for the following:
Benefit #1: Route Optimisation Reduces Overall Costs
Wasted time and unnecessary fuel expenses are common in the logistics industry. However, by using route optimisation technology, you can direct your drivers to the most efficient routes. With less fuel and more time saved, this will result in cost savings, which in turn will boost your business’s sustainability.
Benefit #2: Route Optimisation Reduces the Amount of Resources Used
There is no room for excess waste in the logistics industry. By reducing the number of trips your drivers are making in the day, you are reducing the number of resources used. As such, route optimisation results in a more sustainable business.
Benefit #3: Route Optimisation Boosts Driver and Vehicle Utilisation
Drivers who are operating vehicles continuously and making fewer stops will have higher levels of efficiency. This will result in a lower overall cost of operation, which will boost your finance department’s budget for your infrastructure. In the long run, this will have a positive impact on your business’s sustainability.
Benefit #4: Route Optimisation Creates a Smoother Flow of Goods From A to B
Efficient delivery routes are ideal for the transportation of goods from one place to another. If a company is selling online, it will definitely want its goods to arrive at its clients’ doors in a timely manner. Route optimisation will allow your business to make deliveries faster and avoid any unnecessary delays that might otherwise slow down the flow of goods.
Benefit #5: Route Optimisation Reduces the Need for Third-Party Carriers
Route optimisation technology has advanced in such a way that delivery services can now do their own truckload matching. This allows them to avoid having to rely on third-party carriers that charge more for the same service. This will help your business save more money, which is a good thing for your finances as well as your business’s sustainability.
The Bottom Line: Different Ways Route Optimisation can Help Push the Transportation Industry to Embrace Sustainable Efforts
A few years ago, the word “sustainable” was just a buzzword that referred to something that is “in harmony with nature.” However, in the logistics industry, sustainable practices are the main goal. Sustainable logistics is about cutting down on waste and ensuring that your business does not impose overbearing demands on the environment.
Hyper-sustainable practices are just a few years away, and it will not be long before the transportation industry catches on to the trend. Route optimisation is definitely eco-friendly that every business should embrace if they want to grow.
Are You Looking for a Delivery Management Software for Your Business?
Here at SolBox, we are dedicated to helping businesses gain back their precious time and resources by allowing their team to focus on the important things. By eliminating the need to manually manage the day-to-day logistics with our fleet management software in Australia, SolBox can help your business optimise its delivery routes and boost its overall efficiency.
