Delivery Route Optimization tips to help your fleet business

Dec 19, 2021

Delivery Route Optimization tips to help your fleet business

The problems that fleet managers face these days may sometimes seem overwhelming, but you can identify them to make it easier to resolve them better. Every part of the fleet management is important but delivery route optimization is critical to cut budgets and streamline operations. Adopting Route Optimization strategies can help across the board, with everything from cutting costs to improving operations, to driver safety. You may be surprised to know that route optimization can address the many issues that fleet operators face today.

Let us discuss what they are.

Rising price of fuel

Fuel usually make up nearly 60% of most fleet’s budgets, which is a substantial chunk compared to other fleet expenses. Route optimization can help to cut back fuel costs or spend by optimizing the time and distance taken.

Increasing Labor costs

Labor costs keep increasing, particularly of drivers. Since the job is tough and there is shortage of manpower in the industry, driver compensation is getting higher as drivers demand more wages and benefits. Because of the need to hire good drivers, their cost amounts to nearly a third of the carrier’s expenses. Driver shortage continues and the pandemic has made matters worse as more drivers reach retirement age and there are fewer young drivers to replace them. If the fleet business isn’t efficient and safe as the competitors, it will be hard to retain good drivers.

High Customer Expectation

Customers and large corporations have higher expectations towards timelines and communication, compelling fleet operators to be efficient, responsive and cost-effective.

How Use of Route Optimization will help fleet management

Route optimization can help address many pain points of the fleet manager in different ways as explained below.

Cutting down costs

In our challenging times and tough market scenario, cutting costs is top priority without sacrificing quality of labor and productivity. GPS enabled route optimization software can significantly help to reduce your fleet’s fuel usage and thus cut operating cost. Delivery route optimization uses the least amount of fuel possible to get to a destination, saving on fuel usage. The less distance travelled reduces the mileage of the vehicle which in turn reduces maintenance cost.

Help Streamline Operations for Efficiency

Route optimization strategy improves and streamlines your fleet operations by taking up all of the jobs of your fleet for the day to draw a route on the digital map to help get to the destinations on time in the most efficient way. With the fleet management software and the route optimization module, you can optimize your vehicle usage to ensure that your fleet has the right number of drivers to finish the jobs allocated. You can also use any extra vehicle to finish more jobs. All this helps your day-to-day operations and fleet business grow effectively while rightsizing your fleet.

Attract & Retain Your Drivers

Owing to the driver shortage, a fleet company needs to be as appealing to drivers as possible, as they aren’t going to stay if the fleet operator is disorganized or unsafe. Route optimization module helps to run operations smoothly, helping drivers to not worry, or be stressed or frustrated. They are most likely to stick to a company that offers competitive pay, is organized in operations and procedures.

Enhance Customer Service

Customers are focused on communication and timeliness and the FMS software can ensure you meet both these expectations. The software helps to draw ETAs and communicate with customers besides keeping to the optimum route to the destination. Customer service is key to customer satisfaction.

In Conclusion

Trinetra Wireless offers a most comprehensive fleet management solution with customizable modules, using telematics technology and Data Analytics. Integrate it with other systems used in your fleet business and generate, process and analyze the data, to convert it into valuable and insightful information to empower fleet managers. The right FMS software is one that effectively addresses inefficiencies and helps identify non-compliance or other discrepancies quickly. It enables strategic decision making and corrective action for problem solving and ultimately improves the ROI of your business.

We can arrange a ‘Demo for any interested persons at their convenience to help evaluate our FMS software. Just contact our Business Development team to kick-off a useful partnership.

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