Do I do enough deliveries to use route optimisation?
So your business has started delivering to your customers, congratulations!
Maybe you were forced into deliveries because of COVID-19 lockdowns or maybe you've spotted an opportunity in the market.
Either way you will soon be asking...
How can I deliver more efficiently?
... and about two google searches later you will have found route optimisation and a number of different platforms that promise to be the answer and save you thousands of dollars per day!
But... you've only got a couple of vehicles and these platforms look complicated, yes route planning is a pain but do you need to make this investment?
Are you too small? How deliveries per day do you need in order to make a route optimisation platform worthwhile?
There is no definite answer or formula to calculate this, ultimately it depends on your business, customer profile, volumes and the area you are delivering to.
But as a guide, if you have more than 10 deliveries per vehicle per day or more than 5 vehicles in your fleet then you should consider route optimisation.
Why 10 deliveries?
Google Maps lets you plan a route with up to 10 stops and
Planning and sequencing 10 stops in a couple of minutes is about the limit of the human brain.
Unless you have fantastic local knowledge, beyond this number you are better off leaving it to a computer.
5 jobs: You can quickly mentally plan these drops for your drivers
50 Jobs: It's a bit tougher, without an optimisation algorithm you will need to spend a few hours planning.
An algorithm can build optimal routes in a few moments, with accurate ETAs
Not just optimisation, delivery management as well
You also need to consider:
your customer's delivery experience.
how do you communicate arrival times?
do you scan barcodes and track loading and delivery at a parcel level?
how do you generate Proof of Delivery documentation?
do you need to manage Returns?
how do you pay your drivers for the actual hours they worked?
A good route optimisation and delivery management platform can help you with all these questions and more.
Book a demo
And... if you want to learn about Tarot Routing, the best platform (in our opinion), click here to book a demo.