You Don't Need A Good Multi-Stop Route Planner — You Need A Great One

For delivery operators striving to keep up with—and get ahead of—competitors, a great multi-stop route planner is the essential tool. Certainly, a good drivers route planner is miles ahead of manual planning, Google Maps or even legacy on-premise solutions: it might help your drivers deliver to more stops each day, it might boost efficiency, and it might even save time in planning. 

But the shift in the tech landscape is now in overdrive: AI-enabled algorithms are capable of transforming your delivery operations from the moment an order is placed to the five-star review from a happy customer. Great route planners take full advantage of AI, machine learning and SaaS to maximize fleet capacity, reduce miles driven, fuel costs and labor, produce spot-on ETAs, enhance visibility and track critical KPIs.

Last mile delivery has always been hard, and it still is. The problem of creating an efficient route from a series of stops was studied as far back as the early 19th century using calculations done with pen and paper. Some delivery operators are using manual routing methods even now. And while the complexities inherent in last mile delivery haven't changed, the tools available have, and delivery operators who adopt sophisticated route planners soonest and use them effectively are passing competitors in efficiency and customer satisfaction while boosting the bottom line. 

What Is a Multi-Stop Drivers Route Planner? 

Google Maps is a familiar, if basic, drivers route planner. Drivers who are touring a new area, running errands, or avoiding construction zones can use Google Maps to find the quickest way of getting to their destination. Basic route planning apps like Google Maps offer convenience for everyday drivers, but they don't have the sophistication or computational brawn needed to optimize commercial delivery routes. 

An enterprise-scale route planner will ingest orders from elsewhere in your IT stack (e.g. an ERP or POS system), and then automatically sort the stops into efficient routes and sequences according to parameters specified by the user. For example, routing engineers can ask for the shortest routes to minimize fuel consumption, or they can optimize for fixed delivery windows, for cost-to-serve or cost per delivery or other factors.

Different solutions require different levels of manual effort to produce workable routes — a smart, highly automated sequence will require a few minutes of manual effort at most — and they offer different degrees of flexibility. The ideal route optimization solution offers you the freedom to specify your routing needs on a granular level, sit back and let the algorithm work its magic, and then easily make adjustments as needed.

Why Businesses Invest in Route Planning Solutions

The continuing growth of e-commerce has not only increased the variety and volume of online orders, but has led to increased demand for great delivery services.

Previously, shoppers didn't mind waiting for seven to 10 business days to receive their packages. Many consumers now demand next-day — or even same day — delivery. Plus, the majority want free shipping and will abandon their shopping carts if there are delivery fees.

Customers also have little patience for delivery delays. Half say they will not re-order from a merchant if they have a bad delivery experience; on the flip side, most say that they are likely to be loyal to a brand that offers them a great delivery experience.

The new mantra for delivery operations is to offer the two "F's": Fast and fabulous. 

While businesses are motivated to invest in route planners to increase efficiency, a key benefit is improving the customer experience. The right solution delivers highly accurate ETAs so your deliveries arrive on time, which is the foundation of a great delivery experience. 

Must-Have Features for Multi-Stop Route Planners

A multi-stop route planner should be able to make efficient routes while also satisfying numerous, often conflicting, constraints such as delivery windows, service time, inventory details, distance, vehicle capabilities, driver and crew skills, special handling requirements, and resource availability.

The larger the delivery operations, the greater the complications in delivery route optimization. Firms that are making hundreds of deliveries per day often manage multiple pickup destinations and work with multiple fleets. The right  truck routing software can make sure that the right driver and right vehicle are assigned to the right jobs. 

Given the complexities, delivery organizations need to choose software carefully, to ensure they're getting a route planner that can best support their needs. Here are the must-have features operators should look for:

Easy integration

Effective truck routing software will simplify workflow rather than complicating it. It should integrate into existing processes easily and offer fast and hassle-free onboarding for contractor partners and in-house drivers. Aside from allowing a seamless transition, software that can be integrated easily promotes business growth. Companies should choose a route planner that has an easy-to-use interface and is capable of accommodating fast expansion, such as through the addition of a new area coverage, additional service units or partners, and premium services.

Flexible route management

A sophisticated drivers route planner should offer managers complete control over their fleets. It should  optimize routes automatically to empower seamless routing, dispatching, delivery management, and analysis. 

This feature lets you manage both internal and external fleets while taking into consideration factors such as driver availability, regulations and compliance, capacity, and costs. Your  delivery route software needs to be able to help you identify the optimal sequences, shipping methods, equipment, and vehicles for each load according to factors like item weight and bulk, cold chain requirements, and unloading considerations.

AI and machine learning

A route planning solution that uses machine learning and AI to analyze historical data will provide optimal route plans tailored to your organization and operating area. Machine learning helps estimate how factors like traffic, driver skill, load type, and more will impact drive and service time — meaning that in addition to having an optimized sequence of stops, you can also have delivery ETAs that are highly accurate. This has a huge impact on customer delivery experience: No one appreciates waiting for a late delivery. 

Robust data analytics

Today's technologies allow for the collection of tremendous amounts of valuable data and route planning software is no exception. Planners should have data on drivers and deliveries across the entire last mile and route planners should be able to use that data to predict cost per delivery, on-time percentages and variations between regions, while setting their own KPIs to fine tune operations.

Real-time visibility

Effective last mile technology should do more than just find the optimal route between stops. The right solution enables all stakeholders, including dispatchers, fleet managers, delivery teams and customers to track deliveries in real time.

Real-time visibility offers accurate, up-to-date information about drivers and assets, so fleet managers can be sure drivers are following route plans. This, in turn, allows fleet managers and dispatchers to make route changes on the fly when new conditions emerge — all while continuing to provide customers with accurate ETAs.

The Right Route Planner Is a Net Asset

Having a reliable, speedy, scalable multi-stop route planner is essential. Compared to its benefits to the bottom line—reduced fuel and labor, smoother daily executions, more satisfied customers and greater brand loyalty—the cost of a sophisticated route planner makes it an ROI superstar, not only paying for itself but providing benefits throughout the organization.