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Route optimization is crucial to reduce logistics costs

Have a fleet of efficient and active drivers It is crucial for the proper functioning of a medium and large company. Many of these organizations need to make deliveries of perishable food products or within certain periods of time, so it is more than inevitable to have controlled the expenses derived from their delivery.

A good management of these logistics costs It is one of the main keys for any company that wants to be competitive in today’s market. For this, it is essential to know all the expenses associated with the delivery of parcels that the company incurs and thus be able to propose a strategy to reduce them. Among these factors, fuel stands out, whose price has risen in recent weeks to unexpected peaks, or the payment method or rate offered to drivers, which can be established under different criteria such as an amount per trip, per mileage , or in kilos or the unit of measure of the good transported.

What options do companies have to reduce their logistics costs?

One of the ways that large and medium-sized companies usually resort to in order to reduce expenses is increase utilization rate of the truck or the fleet. However, this is difficult to achieve if you do not have a good understanding of the products to be delivered, the delivery route or the needs of the customers to whom the delivery is going to be made.

Another option is decrease mileage or the route of a truck or the fleet. In this case, this form of savings would be viable by optimizing deliveries and routes, with specific delivery time windows to avoid making more trips than necessary.

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The third possibility is decrease working hours of the drivers or the company with which you work. This is an ideal situation for both the company and the fleet, but difficult to achieve at times when it is necessary to make large deliveries, such as on special dates such as Christmas or Black Friday.

Route optimization

All these ways to save on logistics costs have a link between them: the need to have extensive knowledge about deliveries, routes, and a complete optimization of the fleet, which could combine all the possibilities of economic savings in a single .

This fourth possibility consists of optimization of parcel delivery routes. An option that is entering the logistics market with great force, especially among large companies that already use it.

In this way, companies like quadmindsa SaaS platform that helps companies improve their planning times, their costs and the level of services, manages to have an impact on the three main saving options, so that, by optimizing delivery routes, it is possible to be more efficient , reduce the kilometers travelled, as well as fuel and working hours, among other aspects.

In this sense, the route optimization process is based on behavior patterns. The algorithm of quadminds it constantly learns and offers the most efficient result with the available resources, and the variables that the client configures at the time of implementation.

In this way, once this tool has been implemented in companies, the estimated cost savings for a small company is 15.4%, for a medium-sized company, 22%, while for large companies it is greater than 24%.

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