Route optimization to minimize Fuel and Labor Costs
As a wholesale distributor, you always need to worry about delivery costs. Given the recurring nature of the deliveries, small increase in costs per delivery can add up over time and affect the company’s bottom line.
To achieve this, organizations are required to plan optimized routes that consider:
- Customer’s preferred time windows
- Minimum labor costs
- Shortest Distance Routes to save on fuel costs
You need to deliver merchandise to the customer at the times that they are open and able to receive merchandise. It may be okay to ask the customer to give different time windows when they can receive the delivery truck and receive merchandise. But depending upon the relationship with the client, sometimes you are required to honor their top-preference time window.
Labor costs can be high and vary depending upon the skill of the driver and also the times when it is considered overtime. As you plan your routes you need to try and minimize the labor costs.
Fuel costs are growing high, and trucks are not fuel-efficient. Most trucks drive at least 100 miles per day and sometimes even do multi-day trips. With such a long distance to travel, saving on fuel costs is critical to stay competitive.
Creating such optimized routes costs time and money, and this can possibly result in merchandise waiting to be delivered while the routes are being planned out.
DispatchTrack’s self-learning route optimization algorithm allows you to control your parameters, in an easy-to-use map-based graphical user interface. This is done so that with the click of one button, thousands of stops are scheduled to hundreds of trucks in just minutes.
— Jay Steinback
Executive Vice President, Rothman Furniture
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