Why investing in route optimization should be on your wish list?

Posted by Dieter Roman on 28/07/2017

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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!

 

  1. The power of the engine  

All routing systems have a central engine; a mathematic algorithm which is at the heart of the solution. As with a car, the bigger the engine, the faster (or better) the car will perform. International benchmark platforms of these algorithms are available. So ask your software supplier how their ‘engine’ performs against other competitors on the market. We believe that the superfast speed is a vital part to achieving cost efficiency and customer satisfaction.

The outcome should always be focused on maximizing the performance of your transport organization and your people: reliable routings and schedules, taking into account every single detail (delivery slots, road tax, driver times, production and truck limitations, …) that can affect your operational business.

 

  1. The proof is in the savings 

Your logistic operations are at the core of your business. It’s your living. By choosing the right solution you should be able to realize significant savings, month after month, year after year. We know cost saving is one of the primary drivers for our customers.  

We can help you to figure out your potential savings. Send us your schedule for 1 day and we’ll tell you the savings you could make. Our promise is simple: no cure, no pay.

  

  1. References and free trials make the difference

Are the logos of your competition on the software provider’s website? Yes? That’s already a good start. Ask for reference customers, plan to visit them or just give them a call and check if the vendor delivered on the promised benefits, if their timescales and routes were realistic, and most importantly : how do their users experience the solution ?  Does the software deliver on what was defined in the initial business case? If there is a free trial of the software, give it a try to find out how it works and how user-friendly it is.

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  1. An innovative partner takes your business to the next level 

What’s your company’s vision and mission in the medium and long term? Choose your transport optimization software partner wisely because your business needs could be totally different within 5 years (due to growth, legal regulations, geographical shifts, …).

And as your business becomes more efficient (which should be at least one of your project goals), you will need extra functionality (e.g. for complex distribution scenarios) to create even more savings.  In short: a solution that initially seemed a good fit for your organization may not provide the long term business benefits you're expecting.

And last but not least: check if the software provider has a user board or expert group to be sure that the product and its roadmap are aligned with the shifting needs of the user base and trends in the market.

 

  1. The change management pitfall

Projects sometimes fail within an organization. First one who will get the finger pointed at is the project manager and his ‘lack’ of project manager skills. But in every project a significant people aspect is at play.

Reactions to change often have a rational component (I don’t get it), an emotional component (I don’t like it) and a trust component (I don’t like you). The only way to counter this resistance and deal with it is by communicating in a timely (right from the start of the project) and efficient manner.

 When companies swap from a manual planning to a route optimization tool double digit savings could be realized. Savings that give you chances in reinvesting and growing so you will be ready for a bright future and for the pole-position in your industry.

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Topics: Route optimization, Transport

Dieter Roman

Written by Dieter Roman

Digital Marketing Manager