Our current world has long been tailored to the vision of a connected space, capable of covering an exchange of ideas for the prosperity of humanity – and consumerism as the engine behind that. But the very idea (even enforced by railways and highways and microfiberways) was never sufficient by itself. At different levels of logistics, the same challenges keep popping up: inefficient route calculation, lack of communication, and so on.
Thankfully, we’ve progressed quite a lot since the Roman Empire, where it all was about horses and hand-written notes. The modern dispatch and routing software is capable of solving the problems that impeded the Romans from collaboration with Han China and vice versa, and more than that. Now, let’s dive into what the current tech can offer to the logistics industry – and how to streamline operations with routing and dispatch software.
What is Dispatch and Routing Software?
Dispatch and routing software automates the processes of seeing through deliveries, from scheduling (i.e. the dispatch part) to defining the optimal route for the vehicle, and then to measuring the driver’s performance. While formerly, having someone sitting on the phone for all that would require a full-time employee (or a dozen if it was anything bigger than a local grocery shop), software now helps with all of that, plus several more things besides, like fleet management, reducing fuel consumption, cutting delivery times, and controlling everything better than ever.
The magic happens when you plug the data and insights component in: for example, companies now report about 20-25% increase in operational efficiency from using routing functionalities. This is especially important not just for logistics providers, but also field service companies (plumbers, etc.), eCommerce, and more. In fact, any industry that requires people and goods in certain locations within tight time windows is the likely beneficiary.
The problems in routing and dispatch that software can help solve
There are several factors that traditionally make routing and dispatch operations a rather painful procedure. These include having to manage multiple vehicles in real time, juggling delivery points, and dealing with time-sensitive orders (which is typically associated with eCommerce, but can get more realistically urgent with other field services). In fact, inefficient routing alone accounts for about 30% of costs that could be avoided with proper software.
One of the major factors here is that traffic tends to be hardly predictable. This, in turn, means you’ll want real-time data in order not to send drivers into congested routes (which will then translate into delays and pointlessly burnt fuel). According to a 2019 report by INRIX, traffic congestion costs U.S. businesses approximately $87 billion annually due to lost productivity. This is where dispatch and routing software helps by using real-time data.
Another problem is lack of efficiency in vehicle utilization. With manual dispatching, the human operator will assign jobs to the first driver that fits the job in their opinion, meaning they can’t possibly loop through all the available options, because there are more deliveries waiting. The side effect, though, is that there’s an imbalance in vehicle use, meaning some vehicles assigned to some drivers will experience more wear and tear (read: more maintenance costs). It’s the type of situation where the better driver you are, the more problems you paradoxically cause the company to endure. Machines don’t have problems with scanning for optimal solutions in milliseconds, though, improving vehicle utilization by about 20%.
Finally, customer service issues such as missed time windows and inaccurate delivery estimates are frequent pain points. Software can track drivers in real-time, providing accurate ETAs and allowing businesses to inform customers if delays occur. This not only improves customer satisfaction but also boosts overall operational transparency and efficiency.
Benefits
What we’ve just described above are just the problems that once called for this kind of digital solution to exist. The benefits of dispatch and routing software, as measured for multiple times, are as follows:
- Increased efficiency: The typical improvement in fleet efficiency is around 20%, as achieved though automating route planning and vehicle assignments.
- Fuel consumption reduction is down by 10-15%, commonly through optimizing idle time.
- Going digital also makes the ETAs more accurate, which, in turn influences customer experience, with 30% higher customer retention rates.
- Lower maintenance costs are to be expected, too, with an average 10% decrease through balancing workloads.
Important Features to Look For
So how to choose the perfect dispatch and management system for your organization? The answer hinges on too many fulcrums to really provide a solid answer (at least, in terms of out-of-the-box or white-label solutions), but here are several key features to look for. Some may be more useful for your organization in the short- to mid-term perspective, some for the others, but the paradox is that all of these are likely to define the business for the next decade:
Real-time GPS tracking
Monitoring fleet locations in real-time is important to (a) ensure there are no unexpected delays, (b) improve operational transparency, meaning there is as little overall idle time as possible, (c) providing accurate ETAs for customer experience.
Route optimization
Route optimization is a multi-variable problem, perfect for machines to solve – the variables being vehicle availability, traffic congestion data, and calculated time en route, to name a few. Add delivery windows to this (since there’s a limited number of drivers), and that’s a problem only machines can solve. Of course, there are many factors that hinge on this, but fuel consumption is the easiest one to track, and this can be reduced by about 15%.
Automated scheduling and dispatch
As mentioned before, humans can handle a lot of factors when assigning vehicles to tasks; truly talented humans can do it well; but with automation, everyone’s capacity is increased, while manual errors are eliminated, resulting in an increase of productivity from 1/4 to 1/3.
Integration with fleet management systems
Even though fleet management software was initially designed to tend to the vehicles themselves, it’s better to match vehicle data to route data – this allows to predict wear and tear, while also rescheduling other journeys in the process.
Mobile accessibility
Drivers don’t usually carry a laptop around, and if they did, this would probably turn out bad for everyone. Mobile apps allow for communication between drivers and dispatchers, real-time updates on route changes, and the ability to log delivery statuses, improving overall operational flexibility.
Driver performance analytics
Contrary to what people often think, this is not a way to assess drivers’ abilities, and the data here is not meant to hit the HR, at least not in most cases. Rather, it’s about tracking fuel consumption, idle times, and route efficiency – something that the system itself is responsible for, with future corrections in sight.
How to Choose Dispatch and Routing Software for Your Business
Of course, even with predefined features, the factors for choosing the proper dispatch and routing software vary greatly depending on your organization’s needs, so there’s no single formula for everyone. Here are the main considerations:
- How big is your company? How big is the fleet itself? This is important since for smaller companies, more straightforward, easy-to-implement solutions are typically more beneficial. However, when the company is large enough to need software that can handle complex multi-region, multi-vehicle dispatch, the need to onboard people to operate the system is nothing compared to the gains.
- Your industry. For example, if you’re an eCommerce company, fulfillment takes up half of your success, and that means your software will be oriented towards inventory and order management systems (either your own or your 3PL provider’s). Field service businesses, meanwhile, will need to orient more towards the staff skills and other factors.
- Is scalability a concern, or could it be during 4 years to come? Look for solutions that can handle an increasing number of vehicles, drivers, and delivery points without significant performance degradation.
- Integrations. Seamless integration with other systems like CRM, ERP, or inventory management is crucial for ensuring a unified workflow. Businesses should choose software that can easily connect to their existing tech stack, improving data flow between departments and reducing manual data entry errors.
Top 5 Out-of-the-Box Dispatch and Routing Software Solutions
Onfleet
Onfleet is the choice for last-mile delivery, due to its intuitive UX and real-time GPS tracking. They offer route optimization, driver performance insights, and notifications for customers, as well as API integrations with adjacent systems. In short, this is the go-to option for mid0to large enterprises that already have a bunch of 3PLs up their sleeves.
Verizon Connect
This one’s a robust platform aimed for enterprises, offering real-time GPS tracking, reroute optimization, and driver behavior analysis. It also integrates well with fleet management software, and is quite scalable, too. It’s good for analytics, but in terms of user accessibility, this all hinges on what your company really does and what the actual routine is.
Samsara
Samsara provides an all-in-one solution for dispatch, routing, and fleet management. Samsara’s IoT integrations and extensive analytics make it an excellent choice for companies seeking comprehensive operational visibility and compliance features.
Route4Me
Route4Me has made a point of easy setup and UX, making it a nearly perfect choice for aspiring companies. The platform excels in creating multi-stop routes and adjusting them in real time based on driver input or external factors like traffic. It also offers a wide range of integrations with GPS devices and other software.
FourKites
FourKites specializes in supply chain visibility and real-time tracking, making it a strong option for logistics companies managing complex transportation networks. Its strength lies in predictive analytics and dynamic ETAs, which help businesses reduce wait times and increase operational efficiency. FourKites is best suited for enterprises with large, multi-modal logistics operations looking for a comprehensive dispatch, tracking, and analytics solution.
Trends and Future Evolution
What’s also important is the near future evolution of the dispatch and tracking solutions, what with all the recent tech advancements – we tech companies can envision where the trend is going, but not all businesses can.
One significant trend is the integration of AI. This means predictive analytics, which makes it possible to look not into just the present-moment situation but also predict what it will look like when the driver’s headed to their destination. This, in turn, allows to reduce fuel costs, minimize delivery times, and improve overall fleet performance even more.
Another key trend is the adoption of IoT. Logistics has been somewhat of an IoT pioneer among industries lately, and for a good reason. Equipped with IoT sensors, delivery vehicles can transmit real-time data on location, environmental conditions, and vehicle health. This continuous stream of information aids in proactive maintenance, reducing downtime and extending vehicle lifespan.
Conclusions
Logistics is one of the most intensively digitalized industries out there, but logistics also permeates a lot of other areas – and its impact is felt throughout. However, the out-of-the-box dispatch and routing solutions available are usually targeted towards one or several niches, and that’s completely normal. What to do if your business is out of their frame, though?
The good thing to know is that the same people that helped develop the major platforms are now working on more specialized projects. What’s even more comforting is that these projects are, as a rule, spurred by the demands of unique companies, whereas the analysts work hard to define software development workflows and priorities that will make it easier and cheaper for everyone.
Which means custom dispatch and routing software solutions are getting more accessible to even the most innovative of businesses. Start your journey toward a more efficient, transparent, and profitable logistics operation today. Contact us for a personalized consultation and find out the best approach for your logistics processes, whether it’s through ready-made software or a custom-built solution tailored just for you.
