Dynamic routing in final mile delivery service is crucial to maximizing the efficiency of your final mile network, avoiding extra costs, and streamlining transportation.
There was a time when a static, singular approach to optimization worked. Now it often falls short in the chaos of today’s logistics industry.
Let’s take a closer look at the challenges of traditional route optimization. We’ll examine what dynamic routing means, and how it enables continuous improvement in the often-overlooked mode of final-mile delivery.
Challenges of Static Routing
Static routing refers to the inability to optimize shipments beyond an initial point of reference.
In other words, shippers will ingest and analyze data one time to find the most efficient route. While that worked great in the past, the advancing size of e-commerce and the gig economy has led to more outsourcing and a greater need to handle more pickups and drop-offs within the final mile.
The reality is that things change. The plans for an efficient route when your shipment is tendered for pickup or final-mile delivery may not necessarily be ideal within minutes. Plus, the around-the-clock nature of the final mile inherently means more activity and more data that can be useful.
Unfortunately, a lack of optimization amounts to leaving money on the table. The lack of optimization throughout the day will lead to missed opportunities to avoid unnecessary stops. You may face increased risk of late or damaged deliveries, and returns.
What Dynamic routing Means in Final mile Delivery Service
Leveraging dynamic routing in final mile delivery service provides shippers with a stronger degree of control. Shippers can more easily track shipment status and make meaningful carbon footprint reductions within the final mile.
Remember, the final mile is among the most costly and time-consuming legs of logistics, according to 60% of supply chain respondents in a recent SOTI Inc. survey, says Supply Chain Brain.
Using dynamic routing in final mile delivery continuously optimizes all moves and stops to make the most of available resources, including physical capacity, drivers, and fuel.
How Dynamic routing Optimizes Final Mile Delivery Service
A world-class transportation management system (TMS) harnesses the power of emerging technologies to optimize the final mile.
Global positioning systems (GPS), devices connected to the Internet of Things (IoT), and mobile applications empower drivers to share their real-time status. That naturally lends itself to optimized route planning by taking into account the disruptions that occur while in transit.
For instance, traffic congestion, inclement weather, or delays in delivery-related activities can all contribute to delays in the final mile. Depending on the delivery requirements, such as furniture set-up or needing a signature for sensitive pharmaceuticals, can further lead to complications. If a driver is unable to deliver each shipment, delivery schedules may need to be adjusted.
Dynamic routing technology can be used to anticipate missed pickups or deliveries, queue another driver, and adapt each driver’s route to mitigate or avoid the issue.
As a result, it’s easier to keep track of what is and isn’t happening, which leads to the best outcomes.
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Rather than an afterthought, optimization in the final mile must be a focus from the moment a shipment is tendered and must remain a priority throughout the delivery process.
That is the basic premise behind dynamic rerouting in final-mile delivery service.
