Our views on route optimization

A close collaboration, a merger, an acquisition or even the start-up of a new business unit. Such interventions pose major challenges to the supply chain. Paying too little attention to the planning process is a classic trap. We examine how algorithms can help.  

How to gain insights into the efficiency of your transport management? Once you decide to measure the system, you have a wide range of KPIs to choose from. How to make this choice, and which KPIs definitely deserve a place in the analysis?

In todays smartphone society, knowing who is where is considered normal. Who hasn't got a mobile phone? Everybody is constantly mapped, tracked and traced. You "check in", share your location, let the world know where you are. All that location-information is captured quite easily through geographical coordinates. These geographical coordinates typically consist of a latitude and a longitude. For people to interpret that stored location-information, these latitudes and longitudes are depicted on a map or translated into addresses. The process of translating latitudes and longitudes into addresses is called 'reverse geocoding'. Addresses are more interpretable for people. It's what we are used to and what we know.
When we want to feed that information into a system, these addresses are usually translated into geographical coordinates. That process is called geocoding. As adresses can be vague at times, proper geocoding is crucial. Needless to say that this is an understatement for transport industry.

In this blog, we'll illustrate the advantages of geocoordinates compared to addresses and why having a decent geocoding tool at your disposal is essential in transport industry.

Data has become a critical part for many businesses in almost any industry. The transformation of unstructured data (information for humans) into structured data (information that computers can interpret) has been going on for decades. The point where the use of structured data boosts efficiency has long been reached but to reach its full potential, that data must be reliable and clean. In transport business, proper data is vital to maximally deliver added value. To get to that state of reliability, discipline and commitment is needed. This requires time and effort. The benefits will be felt in every layer of the organization and beyond the domain of route optimization. The benefits not only stem from the data itself but also from the insights that come with the focus that is required to get that clean data.

When exploring the transport industry, we are shocked by the number of transport companies without planning software. We often ask ourselves why well-established values lack proper route optimization tools. Time and again, the added value through cost savings is demonstrated. If it is so obvious, how come so many experienced players opt to leave their money on the planning table? 

Belgian business magazine 'Trends' interviewed Steven De Schrijver (CEO) and An De Wispelaere (Managing Director) from Conundra.

We all know garbage in equals garbage out. This rule also applies to optimization packages. It is crucial to feed planning software with clean data if you aim for good results. Therefore, if only garbage is at hand, the necessary steps must be taken to clean that dirty data. This usually requires time and effort. 
Spending resources on cleaning dirty data feels like a short-term solution when you know there are better, long term alternatives.

The phrase “proper planning prevents poor performance”, also known as the “5P's of success”, promotes the importance of planning for a successful outcome. In this article I want to show how those 5P’s can be applied to route optimization. Here's how you evaluate your route planning software by running through the 5P-checklist.

Because it can save you money! But how do you start such a project or what considerations should be given? This is a vital business decision, and of course you want to be sure you’re making the right one. Get inspired and learn how you can keep your drivers happy and your planners motivated!