Manual vs. Automated Route Planning: Which One Saves More Money?

Getting deliveries right is a big deal for any business, big or small. Whether you’re running a local delivery service or managing a large fleet, you need to get things to customers quickly and without spending too much. And that’s where good route planning comes in.

For a long time, businesses used paper maps and spreadsheets to figure out the best routes. This way of route optimization, which we call manual route planning, can be tricky and often leads to problems. But now, with advanced technology and AI software, we have automated route planning. This new method promises to make things much faster and cheaper.

In this article, we’ll look at the differences between planning routes manually and using software. We’ll talk about how much each method costs, what the benefits are, and how businesses can switch to the newer, automated way of route planning.

What is Manual Route Planning?

Manual route planning involves creating delivery routes by hand, typically using tools like spreadsheets, physical maps, and the experience of a dispatcher.

A dispatcher might plot delivery addresses on a map, estimate travel times, and sequence stops based on their knowledge of the area. This process often relies heavily on the dispatcher’s memory and intuition.  

However, manual route planning is inherently inefficient. It’s incredibly time-consuming, especially for businesses with a large number of deliveries. Human error is also a significant issue, as dispatchers can easily miscalculate distances or overlook traffic conditions.

On top of that, manual planning lacks real-time adaptability – it can’t quickly adjust to unexpected changes like traffic jams or last-minute delivery requests.  

What is Automatic Route Planning?

Automated route planning uses AI-driven systems to optimize delivery routes dynamically. These systems analyze vast amounts of data, including real-time traffic, weather conditions, and delivery windows, to create the most efficient routes. They can also account for factors like vehicle capacity, driver availability, and customer preferences.  

Here’s what makes automated route planning software so powerful:

• Up-to-the-minute traffic information

  The software uses live traffic data to avoid jams and slowdowns, keeping your deliveries on time.

• Smart adjustments:

  If something unexpected happens, like a road closure or a new delivery, the software quickly finds the best way around it.

• Powerful route planning:

  The software uses advanced techniques to find the shortest and most efficient routes, saving you time and money.

Manual vs. Automated Route Planning: Key Differences

When you compare planning routes manually and letting an AI system do it, you’ll see some big differences. Let’s break them down:

Accuracy & Efficiency

Automated route planning systems are far more accurate and efficient than manual planning. They eliminate human error and can analyze vast amounts of data to determine the most efficient routes, saving time and resources.

In contrast, manual route planning relies on individual judgment and is prone to errors.

Time & Labor Costs

Planning routes by hand takes a lot of time. You need people to spend hours figuring things out.

Advanced AI software like Cigo Tracker can make those routes in just a few minutes, which saves businesses a lot of time and money on paying people.

This frees up your team to focus on other important tasks, like ensuring customer satisfaction and growing your business.

Scalability

If your business is growing, planning routes by hand gets really hard. As you have more deliveries, it gets much more complicated to manage. AI systems can easily handle any number of deliveries, so you don’t have to worry about things getting too busy.  

Real-Time Adjustments

Automated software is great at changing plans when things change in real time. If there’s a traffic jam or a last-minute delivery, they can quickly find a new route.

Cigo Tracker takes this a step further with its advanced Lasso tool, allowing you to instantly adjust routes by simply drawing a selection around the affected stops on the map.

Planning routes by hand can’t react as fast, which can lead to delays and problems.

Which One Saves More Money? A Cost Comparison

When it comes to saving money, automated route planning has a big advantage. Let’s look at the main areas where it makes a difference:

• Labor Costs

  Planning routes manually takes a lot of time, which means you need to pay people to do it. With an AI route optimization system, you don’t need as many people to work on routes, so you save money on wages.

• Fuel Costs

  Automated systems make routes shorter and more efficient, so you use less gas. This saves you a lot of money, especially if you have a lot of vehicles.

• Missed Deliveries

  With automated software, you can get deliveries done on time and avoid extra costs like having to deliver things again or dealing with unhappy customers. When you plan routes manually, it’s easier to make mistakes that may lead to failed deliveries.

• Inefficiencies

  AI systems don’t make the same mistakes people do, and they can quickly change plans if something unexpected happens. This helps you avoid wasting time and money, which can make a big difference to your profits.

Case Study Example

Think about a delivery company that does 50 deliveries a day. If they plan their routes manually, each route takes about 10% longer than if they used an automated system. That adds up to 5 extra hours of driving every day, which means they use more gas and have to pay drivers for more time.

But if they switch to automated route planning, they can cut their fuel costs by 10% and their labor costs by 15%. They’ll also have a lot fewer missed deliveries. Over a year, these savings can amount to tens of thousands of dollars.  

Benefits of Automated Route Planning for Businesses

Switching to automated route planning can bring a lot of good things to your business. It helps you do things faster, spend less, and keep your customers happy. Let’s look at the main ways it can help:

Faster Deliveries & Better Efficiency

AI systems are really good at finding the fastest and most efficient routes. They look at live traffic, road conditions, and when you need to deliver to make the best plan. This means you get things delivered on time, your drivers don’t waste time waiting around, and you can do more deliveries each day. It all adds up to getting things done quicker and giving better service.

For example, if a delivery driver gets stuck in unexpected traffic, Cigo Tracker’s automated system can quickly reroute them, minimizing the delay and ensuring the delivery still arrives as close to on time as possible.

Lower Fuel Costs Through Optimized Routes

One of the best things about automated route planning is that it helps you use less fuel. By making routes shorter and avoiding unnecessary turns and stops, you save a lot of money on gas.

The system figures out the shortest and best ways to go, considering things like traffic and the type of roads.

Reduced Labor Costs & Fewer Human Errors

When you use an automated system for route planning, you don’t need as many people to do it. This frees up your team to do other important tasks. The system takes care of making the routes, so you don’t have to spend a lot of time doing it by hand.

Also, AI systems don’t make the same mistakes people do, like forgetting a stop or planning a route that’s too long. This means you save money on labor costs and your deliveries are more accurate.

Improved Customer Satisfaction with On-Time Deliveries

Getting things delivered on time is very important for keeping your customers satisfied. Automated route planning helps you do that by making sure deliveries happen when they’re supposed to.

With Cigo Tracker’s AI system, customers can even track their deliveries in real time and get updates, which makes them feel more confident and trusting of your business.

On-time deliveries also reduce the need for customer service inquiries regarding delivery status, freeing up your team to focus on other tasks.

How to Transition from Manual to Automatic Route Planning

Switching from doing route planning by hand to using an automated system is a big step for any business. Here’s how you can make the change smoothly:

Assess Your Needs

Start by understanding exactly what your delivery operation needs. Think about how many deliveries you do each day, what times you need to deliver, and how much your vehicles can carry.

Make sure you know what your customers expect in terms of delivery windows. Don’t forget to consider if you have any special requirements, like delivering fragile items or needing temperature-controlled vehicles.

Select the Right Software

Choose a system that fits your needs and works well with the tools you already have. Look for features like real-time traffic updates, smart route planning, and the ability to track deliveries.

Cigo Tracker is a great option that offers all of these features and more:

• Live Route Editing:

  Cigo Tracker allows you to make changes to routes even after they’ve been dispatched. You can adjust routes in real-time, giving you unmatched flexibility.

• On-Route Logic & Dynamic Routing

  With Cigo Tracker, drivers can pick up additional items while they’re already out on delivery. This streamlines your operation and allows for real-time optimization. Many other systems require separate jobs for pickups and deliveries, which can be much less efficient.

• Lasso Tool

  This feature allows you to simply draw a selection around multiple stops on the map and instantly create an optimized route.

Implement the System

Put the software into your daily work and teach your team how to use it. Start with a small test to see how it works and make any needed changes.

Begin by testing the software on a small scale, perhaps with a single driver or a limited number of deliveries. This will allow you to identify any potential issues and make adjustments before rolling it out to your entire operation.

Monitor and Optimize

It’s important to keep an eye on how things are going and make changes as needed. Your route planning software can give you helpful information to improve your deliveries.

Look at the data it provides, such as how long deliveries are taking, how much fuel you’re using, and what your customers are saying. This way, you’ll spot areas where you can do even better. Use this information to fine-tune your routes and processes.

Integrate with Existing Systems

Double-check that the new route planning software can work with your customer management software and other operational systems to make your workflow more efficient.

Easy integration with your existing systems will prevent data silos and ensure that all relevant information is readily available to your team. Cigo Tracker, for example, uses modern API-based integrations that ensure real-time data updates and smooth automation. This is a significant advantage over some competitors who rely on outdated methods, which can lead to delays and errors.

Conclusion: The Future of Efficient Route Planning

It’s clear that automated route planning is the way to go for businesses that want to save money and work more efficiently.

By using AI technology and real-time information, you can make your deliveries faster, cheaper, and more reliable. This not only improves your bottom line but also keeps your customers happy.

In the delivery industry, staying ahead of the curve is essential, and embracing automation is a key step in achieving that goal.

Transform Your Route Planning with Cigo Tracker

Cigo Tracker is a comprehensive solution designed to elevate your entire delivery operation. Here’s how we stand out:

• Multi-Branding Capabilities

  Cigo Tracker lets you customize the experience for each of your clients. From personalized messages to branding elements, you can create a unique and consistent experience that reflects your commitment to quality service.

• Dedicated Customer Support

  We pride ourselves on providing exceptional customer support and account management. Our team is based right here in North America, so you can count on clear communication and quick responses. We’re logistics experts who understand your challenges and are here to guide you every step of the way.

• Modern Integrations

  Cigo Tracker uses the latest technology to connect with your other business systems. This means real-time updates, no manual errors, and a smooth flow of information. We also have strong partnerships with leading ERP providers, including an upcoming integration with NetSuite.

• Flexible Route Planning

  With Cigo Tracker, you’re never locked into a plan. With our unique Lasso tool, you can quickly select multiple stops on the map and instantly generate an optimized route, saving you valuable time and keeping your operation running smoothly.

Take the first step towards smarter route planning. Contact us today for a free demo. Our team of experts is ready to help you discover how Cigo Tracker can transform your delivery operations and drive significant cost savings.

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