Every extra mile your delivery trucks drive chips away at your margins.
And yet somehow many businesses still rely on outdated, manual methods. This leaves room for expensive mistakes, inefficient routes, and delayed deliveries.
The real question isn’t how do we plan routes? It’s why are we still planning them manually when automation can cut costs across the board?
Getting deliveries right is a big deal for any business, big or small. You might be running a local delivery service or managing a large fleet. Regardless, 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 route optimization software. We’ll talk about:
- How much each method costs
- What the benefits are
- How businesses can switch to the newer, automated way of route planning
Key Takeaways
- Automated route planning significantly reduces operational costs by optimizing fuel usage, cutting labor hours, and minimizing human error.
- Scalability is a major advantage of automation because it allows delivery operations to grow without overwhelming dispatch teams or degrading service quality.
- Real-time updates and dynamic routing improve customer satisfaction, which ensures on-time deliveries and better transparency throughout the delivery process.
What is Manual Route Planning?
Manual route planning involves creating delivery routes by hand. This typically includes 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. They’re doing it all 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. Why? Because dispatchers can easily miscalculate distances or overlook traffic conditions.
On top of everything else, manual planning lacks real-time adaptability. It simply 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. At its most basic, you’re using a Google map. But more advanced systems analyze vast amounts of data to plan your delivery route.
This includes 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 plan your route scheduling, 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 optimal route. This saves massive amounts of 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. This saves businesses a lot of time and money on paying people.
It also frees up your team to focus on other important tasks. You could be working on improving 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, thanks to real-time tracking. 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. This allows 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. These could include anything from having to deliver things again to 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. Plus, they can quickly change plans if something unexpected happens. This helps you avoid wasting time and money. It can make a big difference to your profits, especially if you’re in the business of third-party logistics.
Case Study
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. This minimizes the delay and ensures 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. When you make routes shorter and avoid 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 of dispatchers and drivers 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. So you’ll 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 track their deliveries in real time and get updates. They can even message with their delivery driver and dispatcher with 2-way customer SMS. This makes them feel more confident and trusting of your business.
On-time deliveries also reduce the need for customer service inquiries regarding delivery status. So you free 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
- 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. These could include 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. So you can 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.
Next Steps:
Once the pilot phase proves successful, build a phased rollout plan that gradually adds more drivers and delivery zones.
- Provide clear documentation and training sessions so your staff understands both how to use the system, and why it helps them.
- Highlight real examples of time saved or errors avoided to build internal buy-in.
- Finally, assign a point person or project lead who can address questions and communicate best practices during rollout.
Having a structured implementation plan helps you reduce resistance to change. It also ensures your team members will transition smoothly to the new automated workflow.
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 and how much fuel you’re using. Also, listen to 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.
Next Steps:
Schedule regular performance reviews so you can evaluate key KPIs and identify trends over time. You might notice, for example, that a particular delivery zone consistently requires more time due to traffic delays.
This may signal an opportunity to adjust departure times or split deliveries into multiple routes. Encourage drivers to share feedback as well, since they may notice real-world details that aren’t immediately obvious in the data.
Routinely reviewing both system analytics and on-the-ground input will allow you to fine-tune routes. You can also make sure you’re getting the highest return from your automated tool.
Integrate with Existing Systems
Double-check that the new route planning software can work with your customer management software and other operational systems. It will make your workflow more efficient.
Easy integration with your existing systems will prevent data silos. It will also ensure that all relevant information is readily available to your team.
Cigo Tracker, for example, uses modern API-based integrations that guarantee 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.
Next Steps:
Before going live, outline all the systems that need to communicate with the route planner, like order management, inventory, CRM, and ERP platform. Then plan how the data will flow between them. Conduct a test to verify that delivery information is automatically syncing across systems. Also, involve your IT or technical team early to troubleshoot any integration gaps.
Seamless integration streamlines internal workflows and improves customer-facing features like delivery tracking and real-time updates. You’ll build trust and satisfaction over time.
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 improves your bottom line and 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. You’ll save valuable time and keep 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.
FAQs
How much does automated route planning software typically cost?
The cost of automated route planning software can vary depending on the features offered and the number of vehicles you have. Most companies charge a monthly fee for each vehicle that uses the system. This can range from a few dollars to hundreds of dollars per vehicle per month.
At Cigo Tracker, we base our pricing on the number of deliveries you make, not the number of vehicles you have. This can be a much more cost-effective approach for many businesses.
Our competitors often charge a flat fee per vehicle or a set fee for a certain number of deliveries, which can become expensive as your business grows. With Cigo Tracker, you only pay for what you use, making it a flexible and affordable solution for businesses of all sizes.
Can automated route planning handle last-minute changes?
Yes, Cigo Tracker’s automated route planning system is designed to handle last-minute changes.
It can quickly recalculate routes in response to traffic jams, delivery delays, or customer requests. This real-time adaptability is a key advantage over manual planning.
Is it difficult to integrate automated route planning with existing systems?
Modern automated route planning software is designed for easy integration with existing systems, such as customer relationship management (CRM) and enterprise resource planning (ERP) software. Cigo Tracker offers modern APIs and integration tools to facilitate seamless integration.
How does automated route planning improve customer satisfaction?
Automated route planning improves customer satisfaction by ensuring on-time deliveries and providing real-time delivery updates. Customers receive notifications about their delivery status, which improves transparency and communication.
What are the main benefits of switching from manual to automated route planning?
The main benefits include reduced fuel costs, lower labor costs, improved delivery efficiency, fewer missed deliveries, and enhanced customer satisfaction. Automated systems eliminate human error and optimize routes for maximum efficiency.
