How do we improve efficiency in operations to save costs? From a business perspective, you always have this question in mind. It’s one of the most important questions you can ask for business success.
Can a route optimization software help you save money? The answer is a big yes! A route optimization software can save you money in ways that you may not have thought of!
If you believe that buying route optimization software is an expense in itself, then rest assured that the savings from using a route planner far outweigh the cost of buying one.
Hop on a quick 30-minute demo call to understand how Zeo can help your business save money!
How Route Optimization Software Helps You Save Money:
1. Reduced driver costs
With the help of a fleet management software, your delivery drivers can complete the route in lesser time. That means each driver can make more deliveries in a day.
2. Lesser trucks required in the fleet
A route optimization software ensures that you are making the most efficient use of the available resources. Your fleet may require fewer trucks for the same number of deliveries or client visits.
3. Lower maintenance and fuel costs
With a lesser number of trucks in the fleet, the maintenance costs go down. Also as the vehicles follow optimized routes there is lesser wear and tear and fuel cost is also controlled.
4. Driver retention
The drivers don’t feel stressed to figure out the best route themselves as an optimized route is readily available. Real-time updates in the route in case of any unforeseen circumstances help the driver make deliveries with minimum delays. The drivers may feel frustrated if they have to visit the same area multiple times in a day. However, this can be avoided with help of a route planner.
A route planner ensures that the drivers are happy and stay with you longer. This helps in reducing the driver churn and saves you the hiring, onboarding and training costs of new drivers.
5. Fewer people needed for route planning
As the size of your fleet grows, your business will need more people for the purpose of planning the routes. However, with the help of route optimization software, the same planning can be done within seconds with higher accuracy.
6. Lesser failed deliveries
While adding the customer details you can also add the preferred delivery time slot of the customer. The route optimization software will take it into consideration while planning the route. It helps in ensuring that the customer is available at the time of delivery and doesn’t lead to a failed delivery.
The drivers can also send the trip details to the customers so that the customer is aware of the ETA.
Lesser failed deliveries also result in lesser incoming customer calls to the customer service team.
7. Improved efficiency with data analysis
Trip reports can be downloaded from the route planner. These reports provide you with detailed insights into the execution of the route. You can easily check which deliveries were successful, failed or delayed along with the reasons provided by the driver for failed or delayed deliveries. Actual arrival time is also available in the report which can be compared with the ETA to understand for how long the delivery was delayed.
The reports also include other helpful data like navigation start time to understand at what time the driver started the navigation. You also get the updated ETA in the report which gives you visibility if the original ETA was updated due to traffic or any unforeseen reasons on the route.
Analyzing the reports helps in eliminating the inefficiencies that may creep in while executing the route.
A route optimization software, by providing you with the most efficient route, not only helps you save time but also helps in saving money. It helps in ensuring that all your business resources including the drivers, delivery vehicles and planning & customer service staff work efficiently and in a cost-effective manner.