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Route Optimization Software: Cutting Transportation Costs

Many delivery companies face the mounting challenge of trying to keep the costs manageable while ensuring streamlined operations and excellent service to customers they serve. Cutting transportation expenses can dramatically impact your bottom line. But to do it effectively, delivery companies must take drastic steps to manage their services better.

Transportation fees among delivery companies have gone up despite lower fuel prices. For companies that run a fleet of trucks, it’s important to maximize profits by cutting costs in all critical operations of the business. This means investing in cost-cutting solutions like route optimization. How do you cut these expenses without driving up expenses elsewhere?

Company truck fleet

How to Cut Transportation Costs

Delivery companies that are keen on reducing their transportation fees must invest in good route planning solutions. Route planning software can help you save thousands of dollars a year. Unfortunately, many delivery companies still rely on manual route planning.

The more convenient and effective way to streamline your delivery services and significantly reduce delivery costs is by investing in a route optimization app. This software will automatically help you create routes so your drivers make deliveries faster and save hours of planning while increasing fleet productivity.

Why Route Optimization Matters

Route optimization is no doubt one of the core areas of focus when it comes to providing better delivery services to customers. For fleet managers, getting the most amount of production out of their current fleet of vehicles and drivers is their primary responsibility. Efficient route planning is what makes the difference in enhancing service efficiencies.

Route optimization software does more than just cut the transportation expenses. Such systems help fleet managers utilize the actionable data provided over time using the software to gain more insights into the daily operation of vehicle usage, driver behavior, fuel consumption and reduced maintenance expenses.

Finding the Right Route Optimization Software

To enjoy the true benefits of route optimization, you have to look for the right route optimization app. With dozens of apps available, how do you choose the best one for your delivery company? To start with, opt for one that is cloud-based and syncs with all your devices including your smartphone and tablet.

Route optimization software

When choosing the right route planning app, look out for these must-have features:

  • Individual driver routing to help you control driver activities
  • Distributed team routing to manage your entire delivery team more effectively
  • Projected ETAs to help customers know when to expect deliveries
  • Real-time tracking of your fleet and drivers
  • Dynamic geo-fencing for automatic driver checks in and out during multiple stops
  • Auto-change synchronization for activity integration between web and mobile devices
  • Reporting and analytics for insights into improving business operations

Route Optimization Impacts Your Business

Operating a fleet of trucks for your manufacturing supply chain or exclusive delivery service for customers is costly, and it won’t get any cheaper. But with the right route planning software, you can easily cut delivery fees by creating optimized delivery routes for your fleet and drivers. This can significantly impact your bottom line.

Delivery companies must do more than just invest in route optimization software by learning how to improve efficiency in their delivery services or supply chain. Focusing on optimization is one of the key areas that delivery companies should focus on to manage business expenses and streamline operations.

About author

Ivan Widjaya
Ivan Widjaya 2882 posts

Ivan Widjaya is the Owner/Editor of Noobpreneur.com, as well as several other blogs. He is a business blogger, web publisher and content marketer for SMEs.

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