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Route Optimization Software: How It Helps Independent Courier Service Providers

Editor's Note: Take a look at our featured best practice, Trucking / Delivery Business Financial Model (Excel workbook). If you are trying to validate your trucking business (or a general delivery business), this 5-year financial model is just the right tool. These assumptions were specifically designed to meet the needs of a trucking business whose primary revenue stream is from making deliveries. Here is a [read more]

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The success of any delivery service hinges on having reliable courier management software. More and more people are using online stores for their shopping needs, leading to a meteoric rise in the demand for delivery services provided by courier businesses. Efficient, rapid, and safe delivery of products to customers’ homes is an integral aspect of the online shopping experience.

As an independent driver contractor, you will be responsible for the safe and secure delivery of packages and documents to their intended recipients. Both traditional carriers and independent courier services are investing a significant amount of work into re-engineering their operations with the assistance of technological advancements to fulfill the combined demands of increasing parcel quantities and shorter delivery times.

Benefits of Route Optimization Software for Courier Services

Save Fuel

The most apparent benefit of careful route planning is the reduction in fuel consumption that results from taking shortcuts. According to a recent survey, over 89 percent of delivery service companies implementing telematics saw a decrease in fuel expenditures. And since gas is probably the most significant chunk of your budget, finding ways to reduce wasteful fuel use is essential for financial health.

Keep Customers Longer

A poll found that 67 percent of clients would choose not to do business with a firm that provides courier services if its employees were up to an hour late to work. Therefore, on-time deliveries are essential for increasing client satisfaction and securing referrals via word of mouth. You can create well-optimized routes while taking into account traffic, weather, and other limits with the assistance of an advanced multi-stop route planner with GPS tracking.

Route optimization software uses cloud-based location services like Locance real-time GPS data and location updates, allowing ROS to have access to the most current information about the vehicles or assets being routed.

This enables ROS to adapt to dynamic changes, such as traffic conditions, road closures, or unexpected delays, and reroute accordingly.

GPS helps give consumers precise ETAs. Nearly 95% of field service organizations that deployed route optimization software with GPS tracking saw an increase in field employees’ punctuality. Timeliness in pickup and delivery will boost client satisfaction and lead to more repeat business.

Reduce the Costs of Vehicle Maintenance

Destructive driving behaviors increase fuel consumption and maintenance expenses. According to one analysis, analysis, speed, hard acceleration, and frequent braking can reduce gas consumption by 15% to 30% on highways and 10% to 40% in stop-and-go traffic. Unexpected repairs and downtime might hurt your bottom line.

With telematics, you’ll have actionable data on your drivers’ on-road habits to instruct them in intelligent driving and minimize mileage and wear and tear costs.

Lessen the Cost of Additional Time

Manual route planning does not provide real-time visibility into the vehicle’s location or the true causes of delayed delivery. Therefore, it is impossible to determine if the delay was caused by unexpectedly heavy traffic, a mechanical failure, or long coffee breaks.

You can only monitor your drivers in real-time and ensure they don’t take long breaks or run errands during work hours if you have an advanced route planner app with GPS tracking. In short, keeping track of your field workers will make them more likely to work harder and only ask for overtime when they really need it.

Conclusion

The use of telematics and other forms of route optimization software shouldn’t be seen as an extra cost for courier service providers but rather as a means to improve efficiency and customer satisfaction. It’s crucial to increasing profits, decreasing expenses, and delighting customers. In less than 30 seconds, you can map out a comprehensive strategy for all your challenging delivery routes using an effective delivery route optimizer. Think of all the time you’ll have freed up and all the extra work you’ll be able to accomplish. Optimizing your routes as quickly as possible gives you a better chance of beating out the competition.

Route optimization software is a useful tool that can help independent couriers in a lot of different ways. One of the great things about route optimization software is that it can make you an awful lot more productive. Couriers can plan the most environmentally friendly routes for more than one delivery, saving time and money to process more deliveries in less time. This increases revenue and improves customer satisfaction through quicker and more accurate deliveries.

Lastly, independent courier service providers who want to grow in a competitive market and do well need to buy software that helps them plan their routes. With this powerful tool, couriers can do their jobs more quickly, save money, make customers happier, and stay ahead of the competition. To learn more about how this software can benefit your business, read here.

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Unlocking Seamless Operations: Introducing the Ultimate Warehousing, Logistics, and Distribution Management Toolkit In the fast-paced world of modern business, effective supply chain management, logistics, and distribution are pivotal to success. Every delay, mismanagement, or inefficiency can [read more]

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Supply Chain Management (SCM) is the design, planning, execution, control, and monitoring of Supply Chain activities. It also captures the management of the flow of goods and services.

In February of 2020, COVID-19 disrupted—and in many cases halted—global Supply Chains, revealing just how fragile they have become. By April, many countries experienced declines of over 40% in domestic and international trade.

COVID-19 has likewise changed how Supply Chain Executives approach and think about SCM. In the pre-COVID-19 era of globalization, the objective was to be Lean and Cost-effective. In the post-COVID-19 world, companies must now focus on making their Supply Chains Resilient, Agile, and Smart. Additional trends include Digitization, Sustainability, and Manufacturing Reshoring.

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About Shane Avron

Shane Avron is a freelance writer, specializing in business, general management, enterprise software, and digital technologies. In addition to Flevy, Shane's articles have appeared in Huffington Post, Forbes Magazine, among other business journals.


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