Route optimization is a crucial part of the freight forwarding process. Done manually it takes a lot of time and opens up more room for errors. This is where route optimization systems can come in handy. These freight forwarding software analyze large volumes of data to find the best route for sending deliveries to different locations. This way your fleet can deliver more goods and still travel the least distance possible.
In this blog, we take a look at the advantages of investing in a good route optimization system:
1. Reduced Costs
Route optimization makes sure your fleet covers the least distance possible. What does that translate to? Lesser distances equals lesser fuel consumption. This leads to reduced costs. That is one of the most obvious benefits of route optimization. However, there are other ways by which a route optimization system can reduce costs. Think about the drivers you have employed. With fewer distances traveled the need for overtime work is eliminated. That means you don’t have to contribute to overtime pay. Similarly, a good route optimization software like Fetche will also schedule preventive maintenance based on data like mileage or engine diagnostics. This will help you avoid costly breakdowns leading to monetary savings.
In brief, you can save money on fuel expenses, operational costs, and vehicle maintenance.
2. Speedy Deliveries
More than 75% of customers value a speedy delivery. In fact, your delivery times might be one of the prime factors they consider when deciding whether to choose you. A route optimization system can help you speed up your deliveries through multi-stop planning. It can also help in reducing delays and making real-time adjustments. This will lead to faster deliveries and happier customers. This will indirectly promote brand advocacy as a happy customer is more likely to recommend your services to others.
3. Increased Productivity & Efficiency
A route optimizing software can aid you in increasing the efficiency and productivity of your workforce. Let me explain. Route optimization can cut down the total distance your fleet will ultimately cover. This means that drivers spend less time on the road and they can complete more deliveries in the given time. Optimizing routes also allows you to use your resources to their full potential, maximizing output with fewer resources.
4. Reduced Emission
Did you know that an idling vehicle consumes more fuel? If your fleet is constantly stuck in traffic and thus constantly idling, the fuel consumption also increases. So what does that lead to? It leads to increased emissions that contribute to smog and climate change. Route optimization can help you prevent this to some degree. Think about it, route optimization will help your fleet avoid traffic congestion. Your drivers will be directed to a road that is comparatively free of traffic. This decreases the need to frequently stop or idle. This will allow your business to stick to sustainable practices.
5. Data Collection
This advantage is only applicable to those businesses that use freight forwarding ERP software like Fetche. A basic route optimization software might not have these capabilities. The digital age is marked by the power of data and Fetche is the best way to collect it. An ERP can collect and collate data such as location, driver performance, fuel usage, and average delivery times. You can use the driver performance data for employee reviews. All other data can be combined with historical data to make more accurate predictions about arrival times and operational costs.
6. Automate Tasks
A freight management system can automate mundane and time-consuming tasks. Tasks like documentation, real-time tracking, and carrier selection can be automated, freeing up your staff to focus on other activities. This will also reduce the risk of human error and ensure that your documentation is accurate and up-to-date.
7. Other Advantages
These are the bonus advantages that come with investing in a route optimization system:
- Regulatory Compliance – These systems can ensure compliance with regulations related to driving hours, vehicle maintenance, and emissions. This will help you avoid fines and penalties.
- Carrier Selection – The right carrier will be selected based on factors like cost, reliability, and transit time.
- Tracking – Some route optimization systems also provide cargo tracking software, so that you can monitor the location of your deliveries. Your customers will surely appreciate this level of transparency.
- Streamline Payments – The payment process is simplified, reducing administrative workload and errors.
- Load Optimization – The freight’s weight and size are matched with the load possibilities of different modes of transport. This results in the optimization of space.
Keep in mind that these advantages may not be available in all route optimization software. These bonus advantages are only available if you are using software like Fetche.
Key Features of Fetche’s Solution
From automating processes to providing real-time insights, Fetche helps enhance efficiency, reduce costs, and improve customer satisfaction. These are the key features that make Fetche an essential tool for freight forwarding:
- Automates order intake, quotes, and dispatch processes.
- Provides a user-friendly online booking system.
- Tracks inventory levels in real-time.
- Optimizes delivery routes for faster turnaround times.
- Provides real-time shipment tracking.
- Identifies potential issues like delays.
- Assigns vehicles and drivers based on real-time data.
- Optimizes resource allocation.
- Schedules preventive maintenance based on engine diagnostics.
- Equips driver with a mobile app that streamlines their daily tasks.
- Track KPIs.
- Optimizes warehouse layout.
- Enhances labor management.
Conclusion
In brief, a route optimization system offers many advantages for freight forwarding companies. It minimizes fuel consumption, cuts overtime pay, speeds up deliveries, and boosts employee productivity. Simply put, you gain profitability through an increased number of deliveries per day, enhanced employee productivity, better customer satisfaction, and the acquisition of more customers. You can also contribute to sustainability initiatives by reducing emissions caused by prolonged idling in traffic congestions. Your route optimization software can also automate mundane tasks like documentation, real-time tracking, and carrier selection, and provide valuable data for informed decision-making. Additional advantages include ensuring regulatory compliance and cargo tracking.
Thus it is safe to say that investing in software for freight forwarders can significantly improve profitability and operational efficiency.