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How to optimize fleet efficiency with route management

How to optimize fleet efficiency with route management

Quick Quiz: What is fleet route optimization?

  1. Finding the fastest way to get from A to B.
  2. Manually assigning routes and schedules to drivers.
  3. Minimizing mileage for multi-stop routes while taking into account local traffic conditions, fleet size, delivery windows and driver schedules.

If you picked “C”, you’d be correct. Fleet route optimization is a complex process. It is also essential to running a profitable fleet.

Fleet managers who plan efficient routes: 

  • Reduce labor and fuel costs 
  • Reduce their fleet sizes
  • Optimize loads and minimize redundant trips
  • Decrease driving time and extend fleet vehicles’ lifespans
  • Increase fleet productivity and sustainability

No wonder route optimization is one of the most important tasks in fleet management. 

In fact, proper route optimization can reduce fuel and vehicle costs by up to 30%. (Vocal Media).

Keep reading to find out how your fleet can enjoy these benefits!

Stop Relying on Google Maps

Planning the most efficient route every single time is no easy feat. If you manage dozens of vehicles, each making dozens of daily trips, manual planning could be an administrative nightmare. It could take hours or even days to get your work done. (And it still might be inefficient!) In fact, if you rely on free Google Maps, your route management is bound to suffer.

Basic Google Maps and other GPS navigation apps are handy if you want to find the quickest way to a friend’s house or your favorite store. They handle routes from A to B just fine. These apps are user-friendly, and best of all, free.

But you should never use it to optimize fleet routes. Here’s why.

  • GPS apps won’t tell you the most optimal stop order - this requires manual planning. (And humans make mistakes!)
  • Google Maps (the free version) and other apps often have a limited number of waypoints you can set.

When you use a comprehensive fleet management software like Logifleet, route optimization comes with the package. There’s no need to subscribe to six different tools and manage permissions and logins for multiple pieces of software. 

By keeping all your information centralized, it’s easier to run a smooth operation.

How Route Optimization Algorithms Work

Route optimization tools use algorithms to save you money. These smart tools increase your fleet profitability by planning the most optimal stop order for each route (while taking into account time windows, driver schedules and vehicle availability).

According to a global study, more than 53% of surveyed fleet managers reported productivity increases after switching to route optimization software (Verizon 2019).

Other apps don’t work as well as route optimization software because they can’t calculate routes according to your constraints (schedules, specific times/dates etc.)

Using route optimization software is just as easy as any other GPS tool. It only takes a few minutes to input all the waypoints. Then, the software calculates the most efficient route within seconds. Every single time. 

Fleet managers can save hours of time each week by leaving the heavy lifting to the AI.

Efficient Route Management Made Easy

Fleet management software like Logifleet goes above and beyond route optimization. It includes additional features to give you a maximum ROI. (Learn more about our features). With the help of telematics, you can streamline work processes and excel across all your core KPIs.

  1. Real-time fleet monitoring increases productivity.

    It’s not enough to plan the routes - you need to ensure your drivers are following them! Setting up telematics is as simple as “plug and play”. Fleet monitoring helps managers see the location and trajectory of every tracked asset. The dashboard shows a high level overview as well as details about each vehicle. Live monitoring keeps employees accountable and productive. (Read more about fleet monitoring)

  2. Driver navigation app prevents miscommunications.

    Banish team miscommunications and micromanagement with a driver companion app. Stop calling drivers when they’re on the road - it’s very distracting. Send routes, waypoints and customer details straight to drivers’ phones instead. Before each trip, drivers can easily review all their tasks. The driver app helps with navigation and it keeps tasks organized to ensure on-time service.

  3. Notifications increase visibility.

    Set up custom alerts so you stay updated on trip progress. Get notified about potential service delays or if vehicles are in use after hours. Increase visibility by working smarter, not harder. These notifications are especially helpful if customers make last-minute changes, special requests or if they’re asking about ETAs.

  4. Route logs and historical data help during performance reviews.

    Evaluate driver performance based on their trip data. Every trip is automatically logged and stored in one place. You can review reports at your convenience to identify potential problems with vehicles or driver behavior. Telematics can alert managers about aggressive driving behavior and even off-hours use of fleet assets. Data and analytics help you build a stronger, more productive team.

  5. Geozones improves customer service.

    Set up custom labels and geozones for frequently visited places. These could be client offices, construction sites and more. You can track which vehicles enter and leave which geozones at any given time. This improves project management and customer service.

In Conclusion

Proper route management plays a critical role in a fleet’s success. Route optimization software helps fleet managers work faster and smarter. It simplifies trip planning and helps with project management. No more wasted time spent on manual planning and tracking down vehicles! 

Fleet management software gives managers greater visibility into their operations. This visibility is key to building a strong, reliable fleet. 

Finally, route optimization software improves customer service. Better customer service increases brand reputation and customer loyalty, giving you a competitive advantage in the field.

Book a demo call to see how Logifleet can improve route optimization for your business!

 

Sources:

https://vocal.media/journal/google-maps-and-route-optimization-software-are-not-the-same

https://www.mordorintelligence.com/industry-reports/route-optimization-software-market

Raphaël Greppin

Raphaël Greppin

Founder and director of LogiFleet SA since 2002, I take care of the company acquisition and projects management.

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