Route optimization is the process of determining the most cost-efficient route. It’s more complex than simply finding the shortest path between two points. It needs to include all relevant factors, such as the number and location of all the required stops on the route, as well as time windows for deliveries.
Other factors are:
The different route options can quickly add up. With just one vehicle and 10 stops, the number of possibilities is 3,628,800. But if you have a fleet of five vehicles, that number jumps to a whopping 37,267,043,023,296,000. This is why route optimization is mostly performed by computer algorithms and advanced heuristics that can quickly narrow down the options.
Route optimization is often illustrated using the popular Travelling Salesman Problem and vehicle-routing problem.
Route-planning software can quickly test multiple what-if scenarios to help fleets review the costs of different route options and resource availability (e.g., Will having fewer vehicles or drivers improve the cost efficiency of our routes?).
KMZ MOTOR’s route-planning software helps dispatchers and route planners calculate the most cost-efficient routes for their drivers quickly and efficiently. It also gives them the tools to respond to changes and update already planned routes in near real time as situations change throughout the day. Integrated into our fleet management software, our routing software also allows fleet managers and sales reps to improve driver management and plan for future business changes.