What is Route Optimization?
Route optimization is the process of determining the most cost-efficient route. It’s more complex than simply finding the shortest path between two points. It needs to include all relevant factors, such as the number and location of all the required stops on the route, as well as time windows for deliveries.
Other factors are:
- Number of turns or intersections along the route
- Left-hand turns (crossing the line of traffic)
- Best or nearest driver to dispatch to the route
- Traffic congestion for the current time of day
- Best approach (access) to a stop on the route
The different route options can quickly add up. With just one vehicle and 10 stops, the number of possibilities is 3,628,800. But if you have a fleet of five vehicles, that number jumps to a whopping 37,267,043,023,296,000. This is why route optimization is mostly performed by computer algorithms and advanced heuristics that can quickly narrow down the options.
Route optimization is often illustrated using the popular Travelling Salesman Problem (TSP) and Vehicle Routing Problem (VRP).
Route-planning software can quickly test multiple what-if scenarios to help fleets review the costs of different possible routes and resource availability (e.g., Will having fewer vehicles or drivers improve the cost efficiency of our routes?).
Benefits of route optimization
Route planning helps distributors and businesses with delivery operations plan out the best routes for their drivers each day, whether they are trying to provide reliable ETAs and improve customer satisfaction or get through a multi-stop delivery route in the most efficient way possible. Optimal routes mean your drivers spend less time driving, which reduces fuel costs and can increase the number of stops a driver can make in a day, which can help improve your bottom line.
Verizon Connect’s route optimization solutions help dispatchers and route planners calculate the most cost-effective routes for their drivers quickly and efficiently. It also gives them the tools to respond to changes in delivery windows and update route plans in near real time as situations change throughout the day. Integrated into our fleet management and GPS tracking software, our routing software gives fleet managers and sales reps functionality to improve driver management and plan for future business changes.
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Route Planning software
Route optimization software from Verizon Connect helps the bottom line by improving fleet efficiency. Learn more about how our dynamic routing software can help.
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