In the fast-changing logistics world, shippers constantly research new ways to optimize their supply chain and stay competitive. Lately, route optimization and digital road mapping have helped many businesses overcome common delivery challenges and grow customer satisfaction.
What is route optimization?
Route optimization (RO) is one of the most popular logistics technologies that help shippers find suitable routes for delivering their products. By considering the deadlines, stops, mechanical checks, and paperwork requirements, RO systems generate a time- and cost-efficient plan to transport your shipments. Thus, you’ll be able to move your goods fast and safely while avoiding unnecessary expenses.
Route optimization software performs other valuable functions. RO systems give you a deeper insight into inner logistics processes letting you work on possible problems. You’ll build shipping routes by counting external factors affecting the supply chain speed. Finally, you’ll be able to react proactively to potential shipping inconveniences.
Benefits of route optimization
Although route optimization is a highly digitalized process requiring revision of your supply chain operations, it significantly benefits your business. Besides making the delivery more effective, you can gain better control over all stages of freight shipping.
In the logistics sphere, manual road mapping has been a long-established method of shipment preparation. However, this method doesn’t exclude human errors that sometimes lead to rough shipping disruptions. A technological route optimization provides accurate calculations allowing you to accord your delivery with the required schedule. These calculations include identifying the most physically comfortable route, shortening commuting time, and providing your customers with a precise ETA (estimated time of arrival).
Besides, route optimization analyzes the traffic conditions for a chosen route. Since transport congestion can seriously influence the shipment duration, optimization systems can suggest an alternative road map or modify the delivery schedule according to the traffic state. All the mentioned functions aim to shorten the transit time and create more shipment opportunities for your business.
Even though you might be used to particular shipping routes, sometimes switching to the safer ones is better. It especially applies to shipping for long distances, where some parts of the road can cause many troubles. Route optimization software analyzes potential directions and determines the one with the best road quality and the highest safety index.
Electronic route mapping allows you effectively prevent road accidents and protect the supply chain members from physical injuries. Besides, you can avoid the risks of freight damage, thus staying away from financial losses.
Route optimization tools also consider weather conditions that might create obstacles to fast delivery. The system will offer alternative routes to bypass long tailbacks or dangerous areas. It will protect the transport units from breakdowns and your items from damage.
Route optimization systems are beneficial for increasing your supply chain visibility. For example, you can remotely supervise the shipment flow to detect bottlenecks and implement this information for future improvements. If you’re using transportation management systems, this will be even easier.
By connecting road mapping software to the TMS, you’ll receive real-time shipping data complemented with analytics. In addition, the TMS will store all the data so that you can access it anytime. Typically, management systems contain various communication channels that can assist your customers with any inquiries.
Also, route optimization significantly facilitates the shipment tracking process. The system will automatically update the tracking interface throughout the shipment and notify you about any shifts. What’s more, it will help you grow customer satisfaction by providing clients with precise delivery information and making them the participants of transportation.
Since the environmental impact has been one of the biggest concerns of modern logistics, route optimization systems aren’t an exception. Another software goal is analyzing your carbon footprint and reducing emissions. During shipment, route optimization technology collects emissions data and generates a report. Based on it, you can consider shortening your routes or switching to greener logistics practices.
Reduced shipping costs
The most significant advantage of route optimization is its capability to reduce shipping costs. By reviewing the transportation direction, the system looks for opportunities to shorten the overall distance and thus make the shipment more affordable. Simultaneously, it affects your fuel charges and prevents exceeding the logistics budget.
Besides, you can use route optimization software to cut unwanted expenses and avoid overpaying for additional shipping services. Modern optimization setups can examine the type of transported cargo and extra handling procedures it may need. Usually, additional services apply to oversized or sensitive freight, and if your items don’t fall under these categories, route optimization will prevent these expenses. If you need some extra assistance, optimization software will help you shape your requests more precisely.
At GoShip, we work to provide you with the best shipping experience, leaning on advanced technologies. We can connect you to many professional carriers prioritizing delivering your freight through comfortable and safe routes. Also, you’ll receive quality service at reasonable prices. Compare the carrier rates, and get a free quote today!