Holding Down Costs with Cutting-Edge Route Optimization

In order to deliver goods as cost-effectively as possible, delivery and logistics companies must have a rigorous route optimization system.

In simple terms, route optimization is the ability to transport items as quickly as possible.

The process, also called route planning and route scheduling, involves finding the most efficient way to make a sequence of stops. The goal is to minimize travel time, distance, fuel consumption and overall operational costs—while maximizing resources and ensuring timely delivery.

Components of Route Optimization

1. The addresses/coordinates of the starting point, final destination and intermediate stops
2. Constraints and variables, such as vehicle capacity, time windows for deliveries, time needed at each stop and likely traffic conditions for the route
3. An optimization algorithm: Sophisticated algorithms and mathematical models calculated the optimal sequence of stops and routes to cut travel costs while meeting all constraints
4. Real-time data integration incorporating real-time traffic and weather data to adapt directions en route when conditions change

Route optimization can consider multiple objectives, including:

• Cost minimization
• Time window adherence
• Maximum vehicle life
• Minimum of environmental impact through reduced emissions

At Redkey Express, a top Cincinnati delivery company, our system must often balance several objectives. The unique needs of customers on a route are taken into consideration, alongside cost-, fuel- and time-efficiency.

Who uses Route Optimization?

A wide range of industries use route optimization, including transportation and logistics, package and parcel delivery, field service management (like plumbing or HVAC repair services), public transportation and even ride-share services.

Advanced software and technology solutions, including GIS and route optimization software, play a key role in automating and optimizing the route planning process for businesses and organizations.

What are the Benefits?

There are many benefits of route optimization. Cost reduction is the top reason companies use the technology, but there are other advantages:

• Improved customer satisfaction and loyalty through timely deliveries and service calls
• Increased efficiency: route optimization makes the best use of vehicles and drivers, leading to operational efficiency
• Less environmental impact: efficient routes release fewer carbon emissions by cutting down on unnecessary driving miles and idling to plan the next step
• Better decision-making: data-driven route planning gives insights into the smartest way to allocate resources, and leads to better-informed decisions
• Lower operational costs due to lower fuel costs, labor costs, vehicle maintenance costs, and less wear and tear on vehicles

How Route Optimization Helps Redkey Customers

By plotting the most efficient routes, we are able to keep local delivery service costs low and pass those savings on to customers, keeping pricing at Redkey Express delivery services extremely competitive.

We do everything we can to hold down costs. For example, we always choose the smallest vehicle that can carry a customer’s cargo. When it makes sense in terms of timetables, we ask customers if they want to share a vehicle with other customers.

We keep our vehicles in top form so delays from breakdowns are extremely rare. Our training program is rigorous, and we are constantly upgrading our route optimization and real-time tracking systems as technology advances.

These things cost in the short-term, but save big over the long run, through loyal repeat customers and word-of-mouth referrals.

Providing fast, reliable, affordable delivery is why we exist. Cutting-edge route optimization is just one tool that helps make it possible:

1. We make more deliveries in less time
2. Vehicles reach their destinations faster
3. Unnecessary detours are eliminated

Since route optimization software became widely available in the 1990s, deliveries have been on time more often, vehicles idle less, and the cost of delivery has stabilized. AI will continue to improve the technology so we can serve our valued customers even faster and better.