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
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.
More Advantages of Final Mile Routing Software in Freight Management
- 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.
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.