How Dynamic Routing Helps Delivery Companies Avoid Extinction

Dinosaurs didn't fare too well once that big comet hit Earth. Interestingly enough, however, shipping companies that don't evolve to meet the growing needs of their customers face a similar extinction.

Today's customer demands information now, updated quickly, and data accessible from any location, using any device. When it comes to planning an efficient shipping route, a proactive delivery company uses only the best technology to improve on-demand delivery service.

This is the very concept that drives the core of dynamic route planning.

Changing the operations of your business to meet the needs of your customer base is just a part of life. And for those who ship or deliver products daily, integrating dynamic route planning software into their supply chain is crucial.

This is, by far, one of the best ways to avoid being hit by a consumer-driven cataclysmic comet, the likes of which was experienced by those dinosaurs we were talking about.

For those who are not aware of dynamic routing, this article is for you. In this blog post, we will explain what dynamic route planning involves and introduce you to some of its benefits.

What is dynamic routing?

Dynamic routing helps companies stay ahead of the evolving needs of today's customer.

This type of software solution allows a company to increase response time to customers, improve route planning efficiency, and reduce mistakes. It does all of this through complex algorithms, AI, blockchain technology, and advanced communication platforms.

Dynamic routing receives constant updates and revises delivery schedules and route planning to meet customer demand. Essentially, it’s a SaaS platform that is changing the way services are provided to meet the ever-evolving needs of the consumer market.  

How is Dynamic Routing Beneficial to Shippers?

Integrating dynamic routing into the daily operations of a shipper is not for everybody. It's mainly beneficial to companies who have their own supply chain operations or fleet. A prime example of a company that uses this type of technology is FedEx or UPS.

About 10 years ago FedEx introduced a new platform called ROADS . This platform is essentially a dynamic routing software solution on steroids. Once all packages were collected and distributed from a hub, the software would automatically dispatch each package to an individual courier or route. More than that, it would assign a delivery number, which improved the on-time delivery and route efficiency of this multibillion-dollar company.

However, you don't have to be a FedEx to use dynamic routing. In fact, if you're a distribution center or other business that has more than five vehicles in its fleet daily, dynamic routing can be quite helpful.

A few of the benefits that this type of revolutionary platform offers include:

Improving Route Optimization to Avoid Delays

Whether you have a traffic jam, construction, or other traffic-related issues, your customer really doesn't care. In fact, they expect their delivery by the guaranteed delivery time, regardless.

Luckily, dynamic routing collects data from multiple sources and helps a shipper or carrier avoid these troublesome obstacles as they pop up.

Increased Stops Per Hour

Anybody who delivers anything understands the importance of route efficiency. However, in the end, it's all about completing more stops in a quicker and more efficient matter. And quite honestly, that is often easier said than done. Route optimization or dynamic route planning helps a company achieve this goal by sifting through all collected route data and assembling a new route that facilitates this goal the most.

Reduces Overhead & Fleet Costs

One of the biggest reasons why FedEx introduced ROADS was to save money. And it did exactly that! As a matter of fact, it saved the company money on labor, fuel, vehicle maintenance, and other overhead expenses.

That's what dynamic routing does in a nutshell. It collects information on delivery performance, the volume of orders, and other data points that help to optimize your route coverage without compromising customer service. In fact, if used correctly, it can significantly improve customer service standards while reducing costs and building more value into your supply chain. 

And do you know what happens when you build value into your supply chain? You attract more customers, better shipping partners, and you save more money!

Final Thoughts

Dynamic routing is a wise choice for just about any company that regularly ships freight. Not only can it build more value into your supply chain, but it also leaves your customers with a stellar experience time after time.

Still unsure how to get started? Not to worry, Redwood Logistics has got you covered. Contact us today and let's talk about how you can integrate a dynamic routing platform into your supply chain.