Route Optimisation for Logistics
The road freight sector is probably the biggest user of route optimisation technology – and for good reason.
Road haulage typically involves complex, multi-drop operations, which are often time-sensitive. Transport planning therefore has to take into account a multitude of factors, including:
- Driver hours and mandatory breaks
- Driver qualifications and licences
- Customer-specified time windows or delivery deadlines
- Size and weight of cargo
- Payload and carrying capacity of vehicles
- Special characteristics of cargo, i.e. refrigerated, frozen, etc.
- Special characteristics of vehicles, i.e. tail lift, fork lift, etc.
- Road tolls and Clean Air Zone charges
Many route planners or route optimisers are actually just sequencing tools – they work out the most efficient way in which to complete all deliveries and collections using the assets at your disposal.
However, true route optimisation looks holistically at all vehicles, drivers and jobs. The algorithms are then able to calculate not only how to complete all tasks in the lowest cumulative mileage, but often they can also substantially improve vehicle utilisation. This in turn means that a transport manager could, for example, achieve the same results with eight vehicles as he was previously achieving with 10. Given that many third party logistics (3PL) and freight transport companies often rely on sub-contractors during busy periods, the ability to cut the number of vehicles needed by 20% would be a substantial saving.
Logistics providers are still experiencing tight margins and pressure on overheads, while those with older fleets will face stiff penalties for operating in Clean Air Zones. To put it bluntly, every penny counts right now. Therefore, increasing vehicle utilisation and reducing total miles travelled offer extremely attractive benefits to the bottom line.
Route optimisation from The Algorithm People is proven to cut fuel expenditure by up to 20% and increase productivity by up to 33%, meaning that you can see a return on investment within a matter of months.
In addition, we are experts at electric vehicle optimisation. By analysing data from your existing operations, our algorithms can identify which routes and vehicles could be most easily electrified. And once you have deployed EVs, we optimise their use to ensure you get the best possible return on investment.
If you’re still not sure that route optimisation is right for you, we offer a free consultation. Simply give us some of your telematics data and we will demonstrate the potential savings that route optimisation can deliver.