For shipping companies to survive, distributors have to fulfill several orders daily. A lot of times, there are unforeseen situations that ask for a more systematic route planning:
- Harsh weather conditions
- Heavy traffic
- Sudden package redirection
- Incorrect delivery address
- Maintenance work
- The number of intersections
- Left-hand turns
As these occurrences impacting the time of delivery are all behind the courier’s control, Dynamic Route Optimization came as a fitting solution.
Dynamic Route Optimization is a fully automatic solution system and software that analyzes enormous amounts of mapping data by providing shipping companies with the best routes possible. The system will continuously monitor real-time traffic and other conditions to avoid delivery delays.
Integrating this function into the daily operations of a shipper is not for everybody. Mainly companies with own supply chain operations such as FedEx or UPS can benefit from this software. Nonetheless, dynamic routing can also be quite helpful to distribution centers or businesses that have more than five operating vehicles in its fleet daily.
There are a lot of companies all over the world that offers Dynamic Routing Systems. They offer features that can appeal to different types of shipping companies. A lot of them are user-friendly and accessible through the platform’s smartphone application and online. The system also allows an unlimited number of users/drivers, iPhone/iPad/Android synchronization, vast routes, and CVS, and GPS file export.
How Does Dynamic Route Optimization Work?
The dynamic route system aids companies through the least-expensive routing technology that provides the best paths for data transmission. This strategy is a superior routing technique that alters the routing information depending on the altering network circumstances.
Initially, the router delivers and receives the routing messages on the router interfaces. With the use of the same routing protocol, the routing messages and information gets shared with other routers. Next, the routers swap the routing information to discover data about remote networks. Lastly, the routing protocol advertises this topology change to other routers whenever a router finds a change in topology.
What Are The Advantages Of Using Dynamic Route Optimization?
Some drivers don’t manage their time well and will take unnecessarily long breaks, which can cost the business serious money. With the use of a dynamic route software, it helps minimize lost hours, keeping fleet performance at peak. The system uses GPS real-time tracking and other methods to help managers monitor the actions of their drivers. This systematic approach and wise use of technology will avoid the drivers from slacking off, achieving the required maximum number of jobs per day.
Studies show that by taking the optimized route, it can reduce fuel costs by up to 30%. One of Dynamic Route Optimization’s significant advantages is to help reduce the time spent by vehicles on the road. Not only do businesses save up on gas, but the maintenance costs also come down. The truck won’t wear out quickly, which can lower replacement costs.
Another primary goal of the dynamic route system is to reduce the time spent by the vehicle on the road. As such, the drivers won’t need to negotiate and decide on their own on different types of turns. The Dynamic Route Optimization comes with a feature to avoid left turns, rights turns, and U-turns. The less number of turns, the lesser the chances of accidents and delays.
Another added feature of the software is the weather forecast and blocked roads. It will help determine the weather for the region for the route date when planning a new route. It will prevent any accidents a driver might encounter during severe weather. The same goes for not having to reach a dead end after choosing a blockaded path.
Improved Customer Experience
Every customer wants to receive their package promptly, and with less bother about delivery calls asking for the direction to take. To eliminate challenges with finding customer address and identifying roads with convenient traffic conditions, the dynamic route optimization software quickly scans the area and suggest the best route.
In addition to that, the software uses GPS tracking to help drivers identify co-drivers who are nearby when your vehicle breaks down. You can then pass the packages to the other driver and re-optimize the route to ensure the order arrives on time.
The Dynamic Route Optimization software is suitable for all topologies and can automatically adapt to reroute the traffic. With the use of its various adaptive algorithms, the routing decisions change real-time to mirror the changes in the topology or traffic.
What Are The Disadvantages Of Using Dynamic Route Optimization?
Using Dynamic Route Optimization can be beneficial, but there are also has a few disadvantages to keep in mind when choosing to use this type of system. Here are some issues you might encounter when using this software.
It Could Be Complicated To Implement
For Dynamic Route Optimization to be consistently updated, it needs to rely on changes in the network. There will always be a slack between network changes and when all the routers received information about it. The router will then try to match the network change, thus causing the delay (convergence time).
There might be issues with security due to the sending of broadcasts and multicasts. Some providers
Needs Additional Resources To Store The Information
The system does not require manual updating because it uses routing protocols to disseminate knowledge such as RIP, OSPF, BGP, etc. It automatically updates the routing table information periodically and relies on the network conditions. Because of this, it requires extra resources for storing the data.
Who Needs Dynamic Route Optimization?
Almost every business needs a dynamic route software to improve their operations drastically, avoid bumping heads with authority by ensuring that all truck drivers are 100% compliant and saving as much money as possible. This can also help for self-driving fleets.
To further describe each, the below list scenarios will help realize whether the business needs dynamic route optimization or not.
- Businesses that have more than five vehicles in their fleet
- Companies that cannot invest over 2,000,000 working hours to create its optimization platform
- Companies with challenges about having drivers who are not working truthfully and driving using their assets for personal reasons.
- Those who seek to monitor and improve customer service quality
- Those who want to save company resources by eliminating unnecessary costs.
- A company that seeks new routes for a better fuel economy
- For training and educational purposes of drivers who need to know the path without having to explain the existing ones
- Businesses that need to plan the delivery of perishable products to deliver them on time