Last mile distribution remains one of the thorniest problems in logistics. Whether you’re trying to get pallets of lumber to busy job sites or delivering cases of beer to big box grocery stores, the efficiency of your distribution logistics can make or break the profitability of your operations.Not only that, but it can make or break your relationship with your customers.
Given the stakes, it probably goes without saying that the right software is mission critical. But it’s often difficult to figure out exactly what that should look like in practice: Do you need a TMS solution, telematics, fleet management, all of the above? The answer’s not always obvious, and it’s not one-size-fits all.
That said, one of the biggest challenges that distributors face in managing costs and customer expectations is optimizing and executing their distribution routes. Visibility, customer experience, proof of delivery, and reporting and analytics are all crucial pieces of the puzzle—but if you’re routinely not able to generate routes that work for your business and your customers’ needs, the other elements of the logistics process can’t save the situation.
In this post, we’ll go over the ins and outs of distribution routing software, including a rundown of some of the most important features to look for. We’ll cover the ways that this technology has evolved—and continues to evolve—and how that impacts distributors.
Even a few years ago, it might have been tempting to say that routing for distributors had changed very little in the last decade. Businesses that weren’t routing by hand were generally using clunky, user-unfriendly routing systems that provided little in the way of efficiency, scalability, or ease of use.
The result was that a huge proportion of distributors—especially those that run static route plans where they service the same customers each week—were stuck with slow, painful, inefficient routing. Usually, other processes were built up around that routing to make it possible to get the job done, but when it came time to update routes or create new ones from scratch, the process was like pulling teeth.
Luckily, that’s changing for the better. With the advent of AI and machine learning, to say nothing of cloud technology, it’s possible for businesses to access the processing power and computation capabilities necessary to plan routes in a matter of minutes, rather than weeks.
It’s difficult to overstate how much of a game-changer this can be: It means you can iterate more effectively and more frequently on your distribution routes. This, in turn, ensures that they more closely match your business realities week-to-week.
Routes that are constructed this way are more cost efficient and easier to execute. And with a faster, more streamlined process, you can integrate routing more effectively into your logistics processes as a whole.
As technology continues to evolve on this front, it will become an even more powerful way for businesses to stay ahead of the competition and manage their cost-to-serve.
The best distribution routing software is a powerful tool—but when you’re evaluating solutions, how do you make sure you’re positioning yourself for a successful software deployment?
Here are some things to look for when selecting your distribution routing software:
One of the unsung features of more effective route optimization is the direct impact it can have on end customers. What we often think of as a technical, back-office process is actually a key driver of the level of service you’re able to offer customers, and that fact is crucial to remember as you source and implement route optimization software for your business.
How does that shake out exactly? For starters, the flexibility of your routes corresponds directly to how much flexibility you offer to customers. If your routes are rigid and set in stone from the moment they’ve been finalized, you can’t easily respond to last minute customer orders and requests—so if they need something at the last second, they might go to a competitor.
At the same time, if you update your routes too often, customers might find that they’re not getting predictable, reliable service. Someone who’s used to getting a delivery on Tuesdays and Thursdays every week is going to be annoyed if you’re all of a sudden showing up on Mondays and Wednesdays.
If your routing can help you thread the needle here, your customers will be delighted. You’ll show up on time more consistently, you’ll be able to optimize while maintaining most customers’ day of week preferences, and you’ll be able to visualize the delta between different routes plans and proactively notify customers who are going to see changes.
Not only do customers get a new sense of transparency when your distribution routing is more effective, they also get improved performance and flexibility. The fact that this will generally be more cost effective for you is the icing on the cake.
The right distribution routing software is crucial for turning your routes into a driver of value for you and your customers. With the right technology, you can transform an outdated process and boost customer experience and reduce costs across the board.
Finding the right technology to make that happen within your technology stack might seem like a daunting task, but fear not—our routing and distribution experts are here to help. Reach out to us today to schedule a briefing to talk through the process of finding the right distribution routing software for your business.