Delivery Route Optimization

Benefits of Delivery Route Optimization

Posted on September 21, 2015 · Posted in fleet tracking software, Managers

How Route Planning is Beneficial for Your Delivery Fleet

Sean Kimbrough September 21, 2015

Proper planning of daily delivery routes can have a huge impact on the company’s bottom line by reducing fuel usage and lowering driver overtime wages. Through efficient route planning, companies can realize greater revenue while increasing customer satisfaction.

Enhanced Efficiency

The primary responsibility of fleet managers is getting the most amount of production out of their current number of vehicles and drivers. Implementing GPS Management Solutions into day-to-day activity can help achieve higher productivity goals. With the use of “big data analysis” and live vehicle tracking capabilities, managers can positively redirect how resources are allocated, data is interpreted, and productivity is evaluated.  Delivery route optimization allows fleet managers to increase productivity with current workforce and vehicles along with reducing expenses, increasing scheduled work/deliveries and improved customer interaction.

By routing drivers more efficiently, fleet managers can take advantage of increasing projects without increasing man hours or fleet size. Without a cost effective GPS Fleet Management system in place, in order to increase productivity and revenue, companies would need to add more workforce and vehicles adding to initial upfront expenses – down payments on vehicles, hiring and training new employees. With efficient fleet management technology in place, drivers are able to complete deliveries quicker, employee’s complete projects faster, and vehicle utilization is improved.

Utilizing “Big Data” to Achieve Big Results

GPS Fleet Management systems empower fleet managers with actionable “big data” in order to gain insights into daily operation of driver behavior, vehicle usage, fuel consumption, reduced maintenance expenses.

  • By analyzing driver behind-the-wheel behavior, fleet managers can take action to address the issues with the driver and effect positive change in braking habits, excessive speeding and engine idle time. These issues can also be applied to reduce vehicle wear and tear expenses.
  • Every fleet manager wants full, 100% vehicle utilization any given day of operation. By analyzing delivery routes, managers can re-evaluate current delivery schedules to find more optimized routes, more efficient usage of specific vehicles and reduce driver “down time”.
  • Optimized route planning will significantly reduce fuel consumption by eliminating unnecessary driving. By disallowing drivers to plan their own delivery routes, managers can take matters into their own hands planning more direct routes, cutting out wasteful mileage.
  • With optimized routing of deliveries, fleet managers can reduce unnecessary wear and tear on their vehicles, this reducing repair and maintenance costs.

All these benefits of a GPS Fleet Management solution lead to two conclusions: 1. Increased revenue without increasing expenses; 2. Improved customer satisfaction. All companies want to fully utilize all assets to gain maximum performance and increase profits. Typically, it falls on the shoulders of the fleet manager to solve these problems. By utilizing a cost effective GPS Fleet Management system that meets all the company needs, managers can go from someone who oversees a fleet to an indispensable member of management contributing to the company’s bottom line.

EquipTrac’s feature rich SaaS platform, is an effective tool for managers of any size fleet to help reduce expenses, improve customer satisfaction and increase revenue. Contact us today for a no-pressure consultation on how we can be a productive member of your team.