02.09.2022

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The successful operation of a transport and logistics company directly depends on the promptness of cargo delivery. It requires well-organized work on filling out applications for transportation, loading goods, fast execution of accompanying documents, and monitoring the implementation of the transport mission. Planning delivery route is one of the most important things in this chain. Experts from the logistics company Hugo Hunter follow the latest trends of efficient routing. In this article, we will look at the problem of ineffective routing and find out why this process must be improved.

What is the main disadvantage of manual route planning?

Manual planning of delivery route requires a bunch of logisticians and well-functioning teamwork. But even this does not save you from mistakes. Even highly qualified specialists cannot consider all the factors the efficiency of routing depends on.

The main factors influencing the route planning include but are not limited to:

1. Time gaps for delivery.
2. Traffic congestion.
3. Additional loading points along the route.
4. Weight and dimension characteristics of the cargo.
5. Vehicle loading schemes.
6. The capacity of the vans, etc.

Logisticians need to manually compare all these data to determine the most profitable route option. Each new parameter increases the complexity of the task, which reduces the possibility of obtaining an optimal result. Consequently, manual planning results in ineffective routing. In this case, companies have to attract additional vehicles to fulfill orders on time, which entails additional costs.

Automated drafting of delivery routes

Transportation Management Systems coordinate every component of cargo transportation. IT systems based on mathematical modeling math simulation help to avoid many mistakes of manual planning. They provide the ability to manage the development of efficient routing in real-time and in a single virtual space.

The feasibility of automated route planning is based on three main pillars:

1. Distribution of orders by resources.
2. Resource planning for unallocated orders.
3. Delivery progress monitoring.

The logistics management system helps to build a direction for planned and existing transportations, load vehicles optimally, control costs, track the transport location and redirect it if necessary. In manual planning, each process takes more time, and, respectively, the efficiency of processing applications, loading, and delivering cargo to the customer is reduced. For small transport companies, it may not be as critical as for large ones, where many orders require fast processing and delivery. Logistics systems contribute to increased productivity in the logistics business.
They build efficient supply chains that minimize costs and cycle times of cargo transportations.

Why is it essential to optimize the routing process?

Developing efficient routing is an economically significant and priority task for transport and logistics companies. The correct development of routing affects both delivery time and profits. With efficient routing, more freight is transported in the same period, and fuel and labor costs are reduced.

TSM provides comprehensive automation of all logistics processes related to the transportation of goods. IT solutions for logistics significantly reduce the time to build a suitable route. They make it possible to fulfill orders without attracting additional transport since they consider all the factors that influence planning the route.

We carefully monitor the logistics services market, so we are always ready to provide you with a detailed consultation. Want to learn more about improving routing efficiency?