Expectations for shipping keep rising, with customers wanting faster delivery turnarounds, shipment tracking, SMS notifications ahead of a delivery, and of course lower prices. To be a leading delivery or courier business and offer this level of service, it takes an uplift across your entire delivery operation.
A route planning and optimization software might be one of the first ports of call to target immediate impact on reducing delivery times and better utilizing a fleet. Once upon a time, paper maps, spreadsheets, and one team member with an uncanny knowledge of the routes was enough to get this work done. Nowadays, multiple optimization softwares are available — but how do you know which one to choose?
How to choose a route optimization tool
When evaluating your options, you need to check the delivery models that a software supports, its features, pricing, and setup requirements. Let's break those down:
The software must match your delivery model
It might sound surprising, but most route optimization softwares are built with specific delivery models in mind. It could be that one is more focused on the gig economy, with lots of dynamic pick up and drop off modifications needed, while another is for traditional hub and spoke delivery models.
Depending on your type of delivery network, you'll need to make sure the software is best suited to your needs.
Adiona supports many delivery models, including having distinct pricing plans for daily dynamic optimization compared to periodic optimization projects, which are much more time bound.
Essential features for route optimization software
When it comes to the basics, there are a few must-haves to look out for.
How many routes can it optimize at once?
The ideal software will be able to analyze hundreds of thousands of stops in minutes to make sure each delivery gets to where it needs to be as quickly - and as efficiently - as possible. It will then learn from each stop to continuously optimize your delivery operations.
Optimization accuracy
There will always be quirks to a route that your team understands, and so you'll likely tweak routes that have been optimized by software no matter which one you select. The key is to find the software that requires the least amount of tweaking from you.
It's a good idea to run the same route data set through multiple vendors before picking one to test this out!
Tools for a better driver experience
This could be anything from an app that offers live updates to drivers as their routes change (like adding a last minute pick up), to optimizing parking for them so they know when to deliver multiple packages from one parking location.
Tracking and reporting features
With customers asking for regular updates on their delivery, real-time tracking and visibility across your last-mile operation is crucial.
A few must-haves to look out for are features including driver location monitoring, estimated arrival times, and customer notifications. These features can help you spot and solve bottlenecks as they happen, so you can get things back on track as soon as possible.
Simulation capabilities
Simulation is helpful for delivery companies, as it can help plan:
- New depots, warehouses, or micro fulfilment centres
- New vehicles added to the fleet
- Adding or transitioning to new types of vehicles, such as EVs, e-cargo bikes, or others
- Reducing or right sizing the fleet
- Adding or changing territories, routes, or other geo-fencing
- What effects new customers would have on fleet capacity and utilization
With the right tool, simulating these scenarios is not as complex as you might think!
Multi-modal and EV-specific optimizations
Not all delivery fleets are vans! Whether you have a variety of vehicle options, or you're 100% dealing with bicycles, walking, or EVs (or others!), these all have unique ways they can be optimised.
User-friendly interface
It's not just about being pretty, software should be easy to navigate and have appropriate guides or help for you to figure out what you're trying to do on your own, without needing to wait days for a reply from a customer service email.
Real-time data
The best route optimization softwares are adaptive to real-time conditions such as traffic, weather, and construction detours.
Augmented through machine learning and AI
Above, we mentioned you'll likely tweak any route after its been optimized. One feature to add onto this is whether or not the tweaks you repeatedly make (like making sure not to cross a specific road) are being detected by machine learning and accounted for in the next round of optimizations.
This can be a real game changer!
Easy integration and scalability
When you've narrowed down your choice of software provider, you may want to start looking at how much work it'll be to implement it into your existing tech ecosystem or team.
Some software requires significant investment in staff training to know how to get the best out of it. Some require you to involve your IT and security teams.
It’s also important to find a solution that’s able to scale with your business. Whether you’re preparing to ramp up during the busy holiday periods and then return to business as usual, or a business looking to expand into new territory and new routes, you want a solution that will grow with you.
Updates and support
Beyond their website, you can start to gauge a provider’s support capabilities through the sales pitch - sure, every company puts their smoothest talker forward to get you to sign on the dotted line, but some providers go the extra mile to deepen your understanding of exactly how their product will benefit you. You’ll need support in your corner for everything from the initial onboarding and set up process to training your staff, and quick assistance in the event that any glitches arise.
As your organization grows and adapts to an ever-changing landscape, your tech needs to keep up. Look out for a provider that’s committed to making regular updates to their product suite, from fixing bugs to releasing new features, to help future-proof your operations.
Is it better to buy or build your own software?
Some companies thrive on DIY and custom-made solutions for their specific challenges. Others take the approach that it’s best to leave certain things to the experts trained for those tasks.
Each approach is valid, and when it comes to a tech solution to optimize your last-mile delivery operations, the answer to the question of whether to buy or build may lie in a combination of factors such as the size of an organization and its delivery operations, its internal tech capabilities, and of course, budget.
For most, however, buying a customisable software solution built by experts may be the best option.
Cost
Yes, it’s an obvious one, but it’s an obvious one for a reason. The right solution is worth paying for, but it’s important to make sure you’re paying for features you can make the most of. After all, the costs can add up, and there’s nothing worse than realizing you’ve been paying for a subscription you stopped using and forgot to cancel.
Adiona offers different pricing depending on the optimization needs. Daily dynamic routing, for example, is an ongoing task that needs constant work. Other organisations (like school bus routes, garbage trucks, and maintenance vehicles) have periodic check ins to fine tune existing routes and don't need access to a software year-round. Adiona approaches these differently to ensure there's enough value to justify the price of the software.
Depending on the provider, you might have to pay an upfront implementation fee, a regular subscription, and renewal charges, so it’s important to make sure you know - and will use - what you’re paying for.
Try Adiona’s 14-day free trial
Route optimization is a big investment, which is why we offer a full-access trial to our FlexOps suite of products. Use your real requirements and data to judge the platform for yourself and check it has everything you need before you make a decision. Our team will even help you get set up!
