the why
How we assist companies with Dynamic Route Planning
Typically there are two kinds of approaches to route planning: static and dynamic. While the former generally involves the creation of a predetermined route, dynamic route planning can react to developments, such as unusually high levels of traffic or road closures, in real-time.
Why dynamic route planning is important
As the pressure on retailers, delivery firms, and third-party logistics providers has increased, the need for greater efficiency and flexibility in route planning has also surged. Even before the COVID-19 pandemic supercharged growth in the e-commerce market, the number of packages and delivery vehicles on the road was increasing steadily. While e-commerce retail sales worldwide were valued at $1.336 trillion in 2014, this had reached $3.351 trillion by 2019. This year it is expected to reach $5.717 trillion with no sign of this upward trajectory coming to an end.
The increased number of journeys, combined with shifting consumer trends, has meant that more and more businesses are exploring the potential benefits that can arise when route modifications are implemented after journeys have already begun. This additional flexibility means that both retailers and sellers are more likely to enjoy the delivery experience – and this is key.
Many customers have admitted that just a single poor experience is all it takes for them to stop engaging with a brand – it’s a one-strike policy. Given these razor-thin margins for error, it is vital that businesses have the flexibility to execute route replanning whenever they need to.
In simpler times, when delivery numbers were much lower, when consumers purchased things almost always from physical stores, static route planning worked well for businesses and consumers alike.
But this is largely because customer expectations were not as demanding. If packages took a long time to arrive due to problems in warehouses or on roads, that was a minor inconvenience. The winner between competing brands was largely determined by price. But now delivery is a huge factor.
With the rise of Amazon, consumer expectations around delivery have greatly increased. Since the launch of Amazon Prime in 2005, customers have enjoyed much lower delivery times, with next-day delivery offered on many products. This facilitated a seachange in delivery expectations, with over half of online shoppers revealing that they have abandoned a purchase due to delivery times being too slow.
But not many brands can compete with Amazon in terms of resources. As such, in order to offer a delivery service that meets the demands of modern consumers, it is vital that they have access to real-time data. This allows them to ensure packages are being sent on the optimal route, that drivers are not left frustrated, and that customers are kept updated on anything affecting their delivery.
With dynamic route planning, businesses can react quickly to changing conditions on the road in real-time. Logistics providers can instantly reoptimise routes when adding new jobs or remove cancelled deliveries to ensure that their ETAs are upheld.
How the HERE platform boosts your company's performance
As the development of telematics, the connected car and highly automated driving (HAD) continues to disrupt the future of motor insurance, HERE will remain a key player with its next-generation location services.
Decrease the cost of running your fleet by 20%
Reduce re-routing time by up to 90%
Increase driver productivity by up to 20%
Some of the other advantages of dynamic route planning include:
Efficiency from start to finish
Dynamic route planning gives delivery firms and logistics providers more insight than ever – into all parts of a package’s journey. When packages are initially listed for delivery, it is important that logistics providers have at least some idea of where they are going.
The packing process should take into account when deliveries will be offloaded. There’s not much point in having an optimised route if items are loaded into your delivery vehicle in any random order – that’s how delays occur. Instead, dynamic route planning relies on itemising your deliveries and packing them in such a way that drivers can access them quickly before moving on to the next customer. Dynamic route planning takes all this into account, enabling efficiency improvements all the way from warehouse to drop-off.
Preview your actions
Dynamic route planning doesn’t simply allow deliveries to be adjusted on-the-fly, logistics providers can also plan for possible disruptions in advance. If, for example, a burst water pipe leaves a road closed, logistic providers won’t want delivery drivers to be completely unprepared - even if they have access to a route planning solution that can react in real-time.
Instead, dynamic planning allows e-commerce firms to pre-empt disruptions and assess what impact proposed route modificationts would have. This means logistics providers can preview their actions in advance so they can rest easy that any route replanning they choose to implement will be effective.
Track deliveries
Research indicates that almost all shoppers track their packages – with nearly a fifth tracking their packages multiple times a day. Dynamic route planning is only possible if delivery providers have visibility on the exact whereabouts of their packages. This means that businesses have better insight into the location of their products – but so do customers.
With dynamic route planning, consumers can be kept informed regarding the progress of their delivery. Delays can be explained, ETAs can be adjusted, and nobody is left in the dark.
Reduce costs
Last mile delivery contributes as much as 53% of the overall shipping cost. There are a variety of reasons for this but inefficiencies during delivery are a huge contributor. With dynamic route planning, digital tools can find the optimal route based on real-time data around the number and location of deliveries, traffic levels, weather, and much more.
This means that businesses can reduce the amount of fuel they need for each delivery and diminish the need for vehicle maintenance due to undertaking fewer miles on the road. The greater efficiency of each delivery leads to lower costs overall.
Boost customer loyalty
With dynamic route planning, you won’t need to send an email apologising to your customer for late delivery using unexpected road closures as an excuse. Should delays be unavoidable, you can minimise them by instantly finding new routes to get your deliveries to their destinations on time.
By route replanning on the go, your drivers and customers can even contact one another, letting them know of any relevant updates. By improving the speed and transparency of your deliveries with dynamic route planning, you are more likely to offer your customers a better delivery experience – something they’ll reward you with by making future purchases.
How HERE software can enable dynamic route planning
Real-time route modification is only possible if you have access to the right digital tools; solutions that can evaluate data from multiple sources, analysing and delivering instant insights so that drivers always have access to the most optimal route. This is possible with HERE software, which uses over 100 different parameters, advanced routing algorithms and rich map datasets to regularly update your journey information.
At Local Eyes, we offer solutions that leverage HERE software, augmented by our world-class support. We can ensure that your journeys are transparent, reactive and optimised. With Local Eyes and our dynamic route planning solutions, you can replan your routes to ensure you’re prepared for whatever the journey throws at you.
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Local Eyes is a leading provider of location intelligence and data solutions. As a reseller and integrator of geospatial technologies, we believe that forming connections is the basis for business success: connections between people, places, and things. With our products and services, we provide businesses with the dynamic, on-demand data they need to increase their decision-making power.