The logistics and third-party logistics industry can be difficult to navigate. It is a crucial cog in the system that keeps the economy moving, and it is often underappreciated. Logistics and 3PL services help businesses drive efficiency and overall business growth across a wide range of industries by providing reliable, fast, and accurate delivery.
With pre-established, traditional methods and limited technology, some businesses have struggled to grow and serve more clients in recent years. Customers are more demanding than ever, and an increase in the volume of consumer goods on the road has resulted from a shift to online and multi-channel shopping. In order to stay competitive and optimise delivery and business operations, the logistics industry must digitally transform and quickly adopt technology.
A modern Route Optimization Software is a critical component in assisting Logistics & 3PL companies in successfully planning their operations, becoming more productive and efficient, and incorporating smart technology for real-world operations.
Let’s take a look at how a modern Route Optimization Software can significantly improve the efficiency of a logistics service.
1) To get rid of inflexible and insufficient legacy routing systems
Let’s define what we mean when we say “legacy systems.”
At some point in the past, many businesses will have realised the need for a way to plan and optimise their routes. This would have necessitated relying on a solution that lacked flexibility and the ability to adapt to the changing transportation landscape. This is referred to as a “legacy system.”
A modern logistics service recognises that everything in their world is in constant flux, necessitating the use of adaptable route optimization software. Legacy systems, which are based on outdated frameworks and servers, lack the flexibility needed to effectively manage your fleet and changing business needs. Due to the difficulty of doing so, they are rarely updated to account for changes in the transportation environment.
In the modern, dynamic logistics world, however, a SaaS business model with cloud-hosted software that offers continuous updates and easy feature addition is the answer. You can plan and route with confidence knowing that your system is fit-for-purpose thanks to the flexibility and ability to deploy changes in a matter of hours.
2) To improve fleet management with real-time tracking and ETAs
Excellent fleet management is required for efficient logistics and 3PL services. Real-time visibility into planned delivery of goods and services boosts your company’s efficiency.
You can provide greater insight and clarity to yourself, your admin staff, your drivers, and your customers by removing the guesswork with modern Route Optimization Software. You can keep a constant eye on your drivers and know where they are at all times with Live Tracking support. The company can estimate the time of arrival to each location by collecting live data and monitoring their progress. This saves time, money, and resources.
3) To achieve route planning perfection
Perfect Route Planning is essential for a Logistics or 3PL company to succeed. With the addition of fleet tracking, live data, routes optimised with all business-critical parameters, enabling efficient multi-stop routes, and flexibility to add mid-day and impromptu orders into the workflow, route optimization software helps to route and plan better.
It’s all about hitting all of your stops at the right time when it comes to your planning. You can use postcodes, geo co-ordinates, or even modern third-party solutions like what3words with the right route planner.
4) To modify routes in real time
Modern technology has provided you with the opportunity to improve your company’s operations. However, increased customer expectations for on-demand services have resulted from these opportunities.
Today’s businesses must be adaptable in order to meet these demands, or risk being overtaken by competitors who catch up. Annual shopping events such as Black Friday and Cyber Monday, for example, see consumers from the United Kingdom spend a total of 8.56 billion British pounds over the weekend of Black Friday and Cyber Monday. Logistics and 3PL companies must be ready to capitalise on deliveries becoming available at any time in order to deliver this volume of products in such short timeframes.
A smart, modern Route Management Software is a lifesaver in this situation.
Last-minute order allocation, stop sequence re-optimisation, and the ability to replan routes on short notice based on driver availability are all features of modern Route Management Software.
5) To make your company more adaptable
Route Management Software enables businesses to tailor their services to meet the needs of new customers, suppliers, and carriers by providing real-time updates and crystal-clear planning.
Businesses in every industry are more competitive than they have ever been. Online, eCommerce, and multi-channel purchasing platforms have required businesses to be on their toes 24 hours a day, seven days a week. This necessitates effective planning and optimization in all aspects of your company, not just routing.
However, route planning and optimization are at the heart of what Logistics and 3PL do. A smart Route Management Software allows you to cater to the ever-changing and varying needs and demands of your customers, suppliers, and carriers, in addition to planning routes.
6) To reduce manual labour, administrative costs, and human error
When it comes to route planning, logistics and 3PL companies typically have only two options: manual or automated. Manual efforts take time and can give your planning and administrative staff headaches. Even worse, it encourages poor decision-making, which leads to delays in delivery, customer dissatisfaction, and reputational damage.
Route Optimisation Software that is smart, intuitive, easy-to-use, and automated can help find and plan the shortest routes while reducing human labour and effort. It also saves money because it eliminates the need to hire additional administrative or planning staff and pay them to plan routes manually.
Any Logistics or 3PL company that can streamline and automate route planning should be congratulated.
7) To see everything on an easy-to-use dashboard
A comprehensive route optimization service aids accurate and confident decision-making by providing a birds-eye view of operations. All of the data and insights are available on a user-friendly dashboard, allowing users to quickly understand the performance of every aspect of the delivery operations and take necessary, agile actions while remaining confident that they are doing the right thing.
A crystal clear dashboard with an easy-to-use, intuitive interface helps businesses work with confidence and overcome the challenges of decision-making when considering the heavy workload of a Logistics or 3PL team.
8) To get useful information based on accurate data
The logistics and third-party logistics (3PL) industry is a difficult one. Taking products from the warehouse and delivering them to customers necessitates a reliable fleet of vehicles and expert management. The real challenge is then keeping your word and delivering products safely and on time, 24 hours a day, 365 days a year.
A modern-day logistics or 3PL company is constantly analysing data to track and improve performance, as well as identify opportunities to improve workflows. Smart route optimization software aids data streaming across the network, providing users with accurate and useful information. By utilising actionable insights generated directly from the system, Logistics & 3PL businesses can improve their service and make it more customer-friendly by accessing historical route & vehicle data.
A robust, easy-to-understand reporting system should eliminate the need for manual analysis and highlight trends and/or inefficiencies in your operations.
9) To improve office-to-road integration
Route optimization software brings you and your entire company closer together, allowing you to align on key goals and objectives.
Most route optimization software is available in both desktop and mobile versions, allowing business owners and administrative staff to take more calculated actions on the fly while staying in touch with customers and colleagues.
Communication is crucial to the success of any business, but it is even more so when vehicles and goods are constantly moving.
10) To increased return on investment
The truth is that in business, we’re all aiming for the same thing: a return on investment.
Route optimization software should, in the end, provide real, quantifiable value to accounts. Your technology should not only make life easier but also more profitable by reducing miles, costs, and administration.
When you use a Route Optimiser, you’ll quickly see the benefits of your investment. You can quickly see the real value a Route Optimiser brings to your business by comparing route data before and after implementation.
Are you ready to integrate a cutting-edge route optimization programme into your logistics system?
It may be time to upgrade to a dedicated Route Optimisation Software if you’re still using free software or solutions for route planning and optimization, or even manually planning and routing.
It’s been proven that such software can save up to 30% on mileage, fuel, and administrative time, so it’s a no-brainer.
Looking for a route optimization app? Try EasyRoutes.
EasyRoutes turns your Shopify orders into optimised delivery routes that you can share with your drivers or deliver yourself.
Learn more about EasyRoutes: https://easyroutes.app
Get EasyRoutes on the Shopify App Store: https://apps.shopify.com/easyroutes