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If you feel like your delivery routes are not everything they should be, you’re probably right and you’re not alone.
We hope you are enjoying taking a deeper look into where your company falls on the “Technology Roadmap” every month. This month we wanted to discuss Route Reorganization. It’s different from Route Optimization. Rather than just figuring out the best and quickest way from point A to point B, this is about taking a high level look as to the structure of your routes. In today’s competitive business environment, companies need to squeeze every ounce of profit out of every aspect of their business.
Since you are in a business that requires dispatching delivery or service vehicles, you know there is a tremendous cost associated with those vehicles and the employees who use them. What you may NOT know is what causes their cost to be higher than they should or even what tools are available to help minimize that cost.
Several factors affect distribution costs.
Some you can control. Some you can’t. For example: You have minimal control over the cost of fuel. You can shop around and choose the lowest-cost vendor, but that’s the extent of your control.
However, you can play a much larger part in determining how many miles you need to drive to deliver to your customers. You choose which customers will get served on a particular route day and how frequently you will serve them. You choose how many route reps it will take to accomplish this. These choices have a direct impact on your fuel costs (as well as repairs and insurance). And with those costs constantly on the rise, businesses must be always working on ways to combat the costs.
Route analysis and restructure is one way you can take charge. This is also known as Route Engineering.
Did you know that on top of software for optimizing your routes, Advantage Route systems has a service where their professionals can take a high level view at your routes and their structure to provide feedback that may save you thousands of dollars a year. If you know you your routes could be ran smarter but are not sure where to start, reach out to Alex at 209-632-1122 ext 585 and she can get you the assistance you need.
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