Final Mile Routing Software: The Cost-Saving Benefits of Dynamic Routing

dynamic routing in final mile
After nearly two years of “unprecedented times,” it’s clearer than ever that certain businesses can be significantly jeopardized in just a few months. Because the freight transportation industry is an essential building block to many other industries, carriers and shippers must continue to thrive.

Freight transportation strategies that minimize overhead and operation costs while maximizing capacity and efficiency can better equip companies to compete in an unpredictable market. One productive way to pursue efficiency and cost-effective service is through final mile routing software with dynamic routing.

Dynamic Routing Defined

Although there is not a dictionary definition yet for dynamic routing, the concept can be described as “always-on” optimization. Optimization is defined by Merriam-Webster as, “an act, process, or methodology of making something (such as a design, system, or decision) as fully perfect, functional, or effective as possible.”

Dynamic routing is predated by the traditional tool of static routing: when there is always a point in a shipment where there is no longer the potential to optimize the process or route. What’s the difference in static routing vs. dynamic routing?

Dynamic routing utilizes visibility, actionability, and proactive exception management to route, reroute, schedule and more. Visibility is key in this strategy to maintain the option for optimization. Without consistent, reliable sight on all aspects of the transportation process, fleet managers and owner-operators don’t have the tools or data to make important quick decisions.

How Dynamic Routing in Final Mile Software Impacts Efficiency

The final mile is considered the last leg of the transportation journey that puts a product in the customer’s hands. Whether the product is a family’s grocery order or an open bed of twin cargo vans, the final mile is a critical piece of the transportation process.

Not only is it important, but Business Insider reports that the final mile delivery costs are 53% of the entire transportation cost. In other words, dynamic freight management can help.

By utilizing dynamic routing in final mile, shippers are provided the data they need to better control a shipment. Dynamic routing includes real-time tracking to capitalize on available resources such as fuel, drivers, and capacity.

Dynamic transportation management pairs this real-time tracking with traceable out-of-control circumstances, such as traffic congestion and inclement weather. Doing so enables the technology to not only recommend responses to current situations but even anticipate future ones.
This type of business tool gives decision-makers streamlined data to make informed and fast choices on reroutes, intermodal changes, and more.

More Advantages of Final Mile Routing Software in Freight Management

Although efficiency is a great place to start, many companies need more than that to make a decision that will change workflow. Beyond cost-saving efficiency, dynamic routing in final mile can also improve:
  • Customer Service.
  • The final mile puts a product into a customer’s hands. So this part of transportation is the biggest opportunity for companies to shine or fail in customer perception. This touchpoint sets the tone for further interactions as well. Was the customer shipment tracking accurate? Was the delivery on time and undamaged? Passing on shipment tracking to customers minimizes the time spent on customer concerns and questions. It also encourages a partnering trust.
    • Reducing Company Carbon Footprint.

    Utilizing final mile routing software allows for gas optimization. Dynamic management can mean having the right recommendation for avoiding traffic, taking the shortest driving distance, along other specific route needs. Static routing involves manual number-crunching of these choices since sometimes the shortest driving distance requires wasting gas sitting in traffic. It may also require a search for a specific fleet vehicle type to transport the product in a way that is more gas and cost-effective.

    Calculate your potential Saving While Using an enterprise TMS

    Enjoy Advantages of Final Mile Dynamic Routing With MercuryGate

    Final mile routing software is an effective tool for companies who need more flexibility in their freight transportation logistics.

    This strategic software saves time for both shippers and fleet managers, while also granting them tools to offer 21st-century customer service. To unlock your supply chain efficiency and decrease costs, schedule a demo with MercuryGate today.

    Connect With a MercuryGate Dynamic Routing Expert Now.

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