With a vast number of options for route optimization software, all with varying services and competencies, it can be difficult to understand which provider would best suit your business needs. Hence, this blog offers five key things to remember when deciding which route optimization software to opt for.
We look at the importance of software that uses advanced algorithms and AI, integration and personalization features, and factors that look beyond the technological aspect.
This includes looking at the provider’s credibility and expertise, the type of system used, and an emphasis on providing sufficient and proactive customer support.
What is route optimization software?
Route optimization software is used to make the most out of available resources and data. It works by using advanced algorithms and information to yield the most efficient delivery routes.
In fact, route optimization software is expected to undergo significant growth in the market, due to its ability to improve efficiency, streamline delivery route execution, and reduce operational costs.
It analyzes factors including traffic patterns, delivery windows, vehicle type and availability, to generate the shortest and fastest route. This reduces delivery times, increases customer satisfaction, and minimizes fuel and operational costs.
Firstly, you might be wondering about the value of investing in route optimization software for your business. Route optimization software can provide your fleet with significant advantages and benefits.
Reduced Fuel Costs
Going into 2025, it is anticipated that the largest contributor to transport-related vehicles will be light-duty vehicles. Paired with the fact that fuel costs make up 25% of fleet spendings, this highlights the need to minimize carbon emissions where it is possible. By examining traffic conditions and delivery locations, drivers will pass through less congested routes and avoid unnecessary detours, reducing fuel consumption and saving on costs. Moreover, this helps achieve the goal of being an environmentally friendly business, minimizing CO2 emissions.
Higher Customer Satisfaction
By optimizing delivery routes through a vast set of information including specific customer and delivery restrictions, it guarantees more consistently timely deliveries, increasing customer satisfaction and loyalty.
Minimize Operational Costs
With route optimization software generating the shortest, fastest, and most efficient routes, it saves costs in several areas. With less wear and tear, fleet managers incur less maintenance costs. Moreover, with vehicles and drivers being fully utilized, this reduces labor expenses.
Before exploring the top factors to consider when selecting route optimization software, it will be useful to note what features to avoid, choosing the option that will best support your business.
Poor
user-friendliness
Route optimization software provides a platform where drivers and fleet managers can view and manage delivery routes, input additional information or make changes if needed. Hence, a considerable amount of information is displayed and there are many features to navigate. Route optimization software should simplify processes rather than complicate them, and a user-friendly interface is a significant part of that.
Select route optimization software with a user-friendly interface that has visualization of routes, real-time tracking, and is easy to navigate.
No Live Demo
While you can read about the offerings and capabilities of particular route optimization software, seeing it in action can be what clarifies your decision on whether this suits your business or not.
Testing the software with a live demo enables you to assess the software’s functionality, features, and usability. Moreover, you can include important stakeholders to test the software, providing opportunities for important notes to be shared and ensuring that goals are aligned.
This useful feature will avoid fleet managers investing in a potentially costly software that may not accommodate the business’ concerns and requirements.
That said, what are the key things to look for when selecting route optimization software?
Advanced Algorithms
Having insight into an expansive data set will give you the best chance at generating routes that yield consistently successful deliveries. Hence, a route optimization software that uses advanced algorithms and AI will maximize success and efficiency.
This means continuous optimization of routes that take into account the time of day, traffic flow, vehicle type and availability, and low-emission zones. Moreover, a route optimization software that adjusts routes based on a vehicle’s width and height is a useful feature to look for. This avoids vehicles such as large lorries taking routes with constraints such as low bridges.
An advanced route optimization software will utilize AI to analyze historic traffic data, identifying high-congestion areas and times of day. This makes it such that traffic and high congestion times of day are avoided, speeding delivery times.
Gathering a variety of data leads to faster and shorter delivery routes, saves fuel costs, and reduces the drivers hours. This significantly improves the fleet productivity, achieving higher customer satisfaction.
This process can be further enhanced with the use of inventory management software that tracks your orders and items in inventory and generates reports. This feeds into the information that goes into route optimization software.
Integration and Personalization Capabilities
Look for a provider that offers integration and personalization capabilities. This means that the route optimization software can integrate with other features including telematics, CRM systems, and ePOD, enabling complete optimization of the various stages of a delivery journey.
A key part of this journey is retaining and increasing customer satisfaction, this is why understanding what makes a good CRM system is crucial.
Another useful feature is the ability to input important information regarding your fleet with flexible configuration, maximizing the efficiency of route optimization as it caters to your business needs. This includes your business’ operational requirements, specific product information, restrictions, and overall business goals.
This capability removes the necessity to create custom code and can be further improved by the use of AI to gain insight into the configuration.
While technological features are important to assess when selecting route optimization software, it’s also crucial to look beyond this and consider the company’s system and credibility.
Type of System
a provider that uses an internet-based Software-as-a-service (SaaS) will offer you several advantages over an in-house solution. This system is suitable for companies of all sizes, can be accessed by staff from all depots, and continuously updates information.
With SaaS, your system will be scalable, being able to accommodate growth of vehicles and drivers, as well as give all staff a clear picture regardless of their locations.
Reputation and Expertise
Additionally, consider their area of expertise, as this may or may not align with your business niche.
When choosing route optimization software, you want to be confident that your choice is a reputable provider that is renowned for their expertise. Hence, choose a publicly listed provider whose awards and financial performance over past years are displayed.
Ask yourself, “how long have they been in the industry?” and assess their thought leadership within the field. Moreover, search for customer reviews, testimonials, and case studies as compared to their competitors.
Additionally, consider their area of expertise, as this may or may not align with your business niche.
Adequate Customer Support
When choosing route optimization software, receiving the benefits of the software alone is not adequate. For a smooth and efficient process, you need to opt for a provider that has a proactive and helpful team to support you.
This can entail a comprehensive onboarding process, through training, and an on-going willingness to answer any question and support you along the way. Your provider should showcase dedication to your success, investing in a long-term relationship.
Final Thoughts
With an understanding of route optimization software, its benefits, and key features to look for, you can be confident in your search for the right route optimization software.
Look for providers that emphasize the use of advanced data and offer the flexibility and integration that will cater to your specific business requirements. A helpful tip to support your search is looking at review platforms that you can use to compare different route optimization software and narrow down your options.
Choosing route optimization software should be a positive long-term investment, considering broader business aspects such as their credibility in the field, the level of proactive customer support, and a scalable system that can adapt to a growing business, ensuring your success.