How Route Optimization Can Help Your Company Save Money

Company budgets for 2016 will be tight. This means you are going to need to squeeze budgets in all departments while maintaining or even improving customer service.  While this is not an easy equation to reach, it’s also not impossible, due to transportation management systems (TMS) such as route optimizers

One of the ways that your company can save up to 30% immediately is through optimizing its route planning. It simply boils down to being smarter about how you build your loads and distribute them.

How do companies save money through Route Optimization

– Less vehicles

The goal of route optimization is to decrease the amount of vehicles needed to run your routes.

– Less drivers

More efficient routes lead to the elimination of unnecessary vehicles and therefore you will need fewer drivers.

– Lower fuel usage

Route optimization solutions provide a delivery route plan, that assigns each order to a specific vehicle while defining the optimal delivery routes for them. In most cases they are connected to Waze, so traffic delays are minimized, in addition to other factors that may increase the amount of fuel used. Grouping stops together will reduce idle times, which also reduces fuel usage.

– Reduces maintenance costs

When vehicles are utilized effectively, there is less wear and tear.

As you can see, a good way to save money is by using a route optimizer software, that enables companies to improve the efficiency of their routes while saving money. is a very good alternative for this. In a user-friendly web interface, you upload the delivery addresses, specify the features of your fleet and other specific characteristics of the deliveries. In minutes, you obtain an optimized delivery plan that assigns each order to a specific vehicle and defines the optimal route for you.

Within the app, the drivers can review each of the order details, sequences, and optimal routes. There is a control panel or Live view dashboard where it is possible to visualize in real time, the location of the entire fleet and all the alerts associated to the fulfillment of the planned routes.

When you compare the given routes to the ones you are currently using, the money savings are clear.

I would like to hear about your experience with route optimization. Let me know by leaving a comment below.

Francisca is the Business Development Director of Drivin, a SaaS transportation management solution that generates an optimized delivery plan, improves customer service, and reduces transportation costs by up to 30% from day one.