What Is Dynamic Rerouting in Final Mile Delivery

What Is Dynamic Rerouting in Final Mile Delivery
Dynamic rerouting in final-mile delivery 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, but 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, what dynamic rerouting 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, and the plans for an efficient route at the beginning of a shipment’s journey when 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, and the lack of optimization throughout the day will lead to missed opportunities to avoid unnecessary stops, may increase the risk of late or damaged deliveries, and opens the door to increased risk for returns.

What Dynamic Rerouting Means

Leveraging dynamic rerouting in final-mile delivery 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 rerouting 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 Rerouting Optimizes Final-Mile Delivery

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 improved route planning by taking into account the disruptions and risks that occur while in transi
For instance, traffic congestion, inclement weather, or delays in delivery-related activities, such as the setting up of furniture, can all contribute to delays in the final mile. Depending on the delivery requirements, such as 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. With dynamic rerouting 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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Enable End-to-End Efficiency Through All Modes, Including Final Mile, With the Right TMS

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. 

learn how your organization can leverage final mile optimization through dynamic rerouting

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