What is route optimization?
Route optimization is the use of software to work out the most efficient way to move vehicles between stops, balancing distance, time, traffic, capacity, and delivery windows. The goal is simple: fewer miles, less fuel, more deliveries per trip.
It works out the most efficient way to move vehicles between stops.
Distance, time, traffic, capacity, and delivery windows.
More deliveries per trip.
Done by hand, route planning is guesswork that falls apart the moment a new order or a closed road appears. Software solves these constraints at once and re plans when something changes.
Route planning by hand
Guesswork- Falls apart the moment a new order appears
- Falls apart when a road closes
Route optimization software
Solves the constraints at once- Balances distance, time, traffic, capacity, and delivery windows
- Re plans when something changes
For a fleet of any size, the savings compound fast. Every wasted mile is fuel, labor, and a delivery you could have made instead. The EPA runs a freight programme on the same premise: SmartWay partners measure, benchmark and improve logistics operations, which the EPA says helps companies save fuel and lower costs.
Figure 1. How route optimization plans and re plans
Drawn from this article: route optimization software balances distance, time, traffic, capacity, and delivery windows at once for fewer miles, less fuel, and more deliveries per trip, and re plans when a new order or a closed road appears. Structure only; no measured values.
NeoSOFT built an AI driven route and truck volume optimization platform for a Nordic logistics company. A proof of concept on real route data is a common first step.
How does route optimization save money?
By cutting total distance and time across every vehicle, it lowers fuel and labor cost while fitting more deliveries into the same day.
Related services: AI and machine learning development.
Related in this topic: predictive route pre-planning.
Related reading
Related terms:
Services: Logistics & Supply Chain
