What is Route Optimisation and how does it benefit hauliers?

Route Optimisation is a hot topic within the transport and logistics sector. The rise of AI and increasingly smarter ways of working through route optimisation are helping road haulage operators to achieve greater levels of efficiency and reduce costs, before wheels start to turn.

Once, more suited to couriers or those with high-volume collections and deliveries, Route Optimisation functionality has now become more accessible to hauliers looking to get more from their resources, find greater efficiency and reduce their operations’ environmental impact.  The integration of transport management software, TMS, with Route Optimisation is also making the efficiencies gained from optimisation accessible to all haulage operators looking to save more time, money and miles.

What is AI Route Optimisation software?

AI (Artificial Intelligence) algorithms in Route Optimisation consider time and other operational requirements and restrictions to quickly re-sequence the order in which jobs are planned, improving the efficiency of the delivery schedules.  Results are proven to help road haulage operators reduce costs, increase productivity and cut emissions.

How do you optimise delivery routes?

Route Optimisation assists transport planners by collating collection and delivery points across the selected jobs and quickly finding the most efficient and cost-effective routes. This can be done whilst adhering to customer delivery time expectations, turnaround times, and other factors.  It returns the optimal load sequence, displaying routes, ETAs and KPIs such as mileage and cost, including feedback about the optimisation progress.

Job collection or delivery locations that aren’t feasible within the set parameters, or ones that simply can’t be completed within the given timeframes, are highlighted for planners to return to and re-plan.

Not only this, but for live jobs where real-time amendments need to be made, loads can be re-optimised easily, in seconds, saving transport planners’ time, especially for multi-drop route planning operations. They can then quickly review and accept the results.

What is Transport Management Software (TMS)?

A Transport Management System (or TMS for short) is software used by hauliers to plan and execute the movement of goods.  A TMS can simplify a haulier’s day-to-day processes by digitising manual and paper-based tasks. Everything from receiving and pricing orders to planning and executing the work, receiving proof of delivery and invoicing can be managed in one system.

A transport planner uses the TMS to create a plan based on all the information they have about the job and other work that needs to be done.  They use their expertise, knowledge of their customer requirements and preferences, the work needing to be undertaken, resources available to them, such as drivers, sub-contractors, vehicles and trailers, as well as their local route knowledge to allocate and plan haulage work.

How are delivery routes normally planned without route optimisation?

When using a TMS, a transport planner builds loads for a vehicle or driver based on information such as the type of work, locations, delivery windows, and uses KPIs, including empty mileage, cost per mile, load/vehicle fill, etc., to refine and optimise the plan.  They also take a range of customer requirements into account as they plan and re-sequence the stops to refine the plan.

Delivery routes that are put through a Route Optimisation tool are planned by inputting key data such as delivery addresses, vehicle details, and time windows. The tool then uses advanced algorithms to calculate the most efficient routes, considering things like distance, fuel consumption, and the time of day it is. The optimiser then generates these improved routes, assigning vehicles to the jobs that allow the fleet to complete the day’s work in the most efficient way possible within the required timeframes.

Why do Route Optimisation and Transport Management software work well together?

Whilst a TMS helps operators to manage the entire goods transportation process, from orders and job creation, right through to the proof of delivery and final invoice, Route Optimisation focuses on how to make better use of assets.

TMS users can manually create routes and then assign drivers and vehicles; however, this takes time and skilled judgement to ensure the most efficient routing options and optimum resource utilisation. Integrating TMS with Route Optimisation software eradicates the time taken to plan and refine the plan, enabling planners to focus on other tasks that add greater value, such as ensuring jobs are going to plan and communicating with customers.

A Transport Management System with tightly integrated Route Optimisation gives transport and logistics operators the benefit of optimising load sequences using all their company’s data stored in one system, without having to work between two separate applications. Using one interface, loads can be sent to be ‘optimised’ and results can be returned within seconds, saving significant time and effort. You can also get all the benefits of the Route Optimisation software in the TMS.

Also, by creating more efficient routes and making the most of vehicle capacities that are on the road, significant cost and environmental savings can be made, with fewer miles being travelled, and less fuel used. This frees up vehicles for other work, helps hauliers save money on fuel, all whilst reducing carbon emissions.

What else can a TMS offer hauliers?

Additional services tie into the TMS through driver apps, such as customer portals, electronic proof of delivery (ePOD) capture, as well as daily driver walkaround checks to aid compliance.

Helping hauliers to manage all operational aspects, a TMS can integrate with a range of other solutions, providing greater visibility and keeping hauliers and their customers better informed.  They include tracking and telematics, cross docking, warehouse management software (WMS), customer ERP systems, accounting software, and other third-party systems such as Pallet Networks.

Ultimately, a TMS can digitise and collate all the information transport operators need to effectively manage their transport operations in one place. The addition of Route Optimisation to what the TMS already offers creates greater opportunities for further efficiencies, reduced costs, and better utilisation of assets.

Who would benefit from an integrated TMS and Route Optimisation solution?

Most hauliers could benefit from the combined features that a TMS and Route Optimisation offer, but just as an example, these businesses may find them even more useful:

• Couriers or transport operators whose work primarily involves multi-drop or multi-collection work, who require a multi-stop route planner.
• Operators with complex business practices who need assistance from automated systems to help them quickly and effectively manage their complexities.
• Businesses transporting their own goods, such as manufacturers, building merchants, etc.
• Haulage businesses with simpler processes, and who just want an easier, quicker way to plan their work.

Mandata has partnered with Optimize to provide Route Optimisation in their Transport Management Software solutions, Enterprise TMS, Go and Go Plus and Eureka MoveIt TMS.

“At Optimize, we specialise in fleet and freight transport optimisation, decarbonisation, and transformation — using powerful artificial intelligence to tackle the complex challenges our clients face now and into the future. We’re proud to support Mandata on their journey to unlock greater efficiency within their TMS and help their customers streamline their operations.”

                                                                  — Colin Ferguson, CEO, Optimize

Read more about the partnership between Mandata TMS and Optimize here.

If you are considering Route Optimisation for your operation, give Mandata a call to see how our TMS and integrated Route Optimisation solutions can support you. Request a free demo here.