More Glossary Terms

Dynamic Routing

What is Dynamic Routing?

Dynamic routing, also called adaptive routing, refers to routes that are updated automatically using protocols and complex algorithms to calculate routing operations. Dynamic routing enables planners to select paths based on real-time information about the current status of the network  If one section of the network fails, or experiences traffic congestion, data can be re-routed to circumvent that part of the network in real-time.

Route planning in logistics can be broadly categorized in two ways – static and dynamic. In static routing the path is updated by the user or administrator, deliveries are sent through pre-configured routes with no deviations allowed. These routes are fixed and if the predefined route becomes unavailable, deliveries stop which results in loss of business and customers. A static routing approach restricts the company from creating a route based on real-time information, and does not provide ways to communicate between delivery management and drivers, resulting in late delivery of goods.

What’s the difference between dynamic and static routing? Dynamic routing provides key advantages over static routing, including scalability and adaptability. A dynamically routed network can grow larger more quickly and is able to adapt to changes in the network topology brought about by this growth or by the failure of one or more network components.

What Are the Benefits of Dynamic Routing?

Improved Route Efficiency: Dynamic routing platforms include updated communication and GPS tracking solutions that allow a dispatcher or user to review the on-road performance of a delivery route in real time. This ability permits the dispatcher to send instant notifications to the delivery driver, which improves overall route efficiency and allows the company to better serve their customers.

Increased Stops Per Hour: One of the most important metrics used to measure the success or failure of operations is stops per hour. By using a dynamic routing platform, delivery companies can improve their services drastically and decrease overall stops per hour.

Reduced Operational Costs: Vehicle maintenance, fuel costs, and paying drivers are some of the most important entries in a company’s budget. A dynamic routing platform perform various tasks including printing out reports or displaying them on an easy-to-access dashboard. This permits operation managers, fleet managers, and even delivery drivers to review their on-road performance.

Static vs. Dynamic Routing

How does MercuryGate Dynamic Routing work?

With MercuryGate’s platform, delivery stops are automatically routed to the optimal drivers. The optimal solution is based on many variables including time allocated for deliveries versus pickups, the least number of miles driven, the fewest assets used, service times, weight, cube, and skid equivalent. A delivery route plan is created that can be used as-is or changed by the dispatcher based on criteria not taken into account in the decision process. Additional unique MercuryGate capabilities include:

Scheduled pickup routing: Pickups are assigned to the same route or to a preferred driver. Once the route or driver is assigned to the pickup, the router will assign this stop the to the driver until a change is made by the dispatcher.

Best & next best dynamic routing: Pickups are routed to the optimal driver using the “best” option. The “best” option provides a dispatcher with the best choice as determined by the MercuryGate routing algorithm. The dispatcher can accept this recommendation, request the next best option, or manually choose the driver.

On-demand pickup dynamic routing: As pickup requests enter a company’s system or are entered into the order entry screen, they are automatically routed and assigned to the optimal driver based on number of miles, weight already on the trailer, remaining space on the trailer, stops already assigned, etc. without dispatcher involvement. The assignment can be overridden by the dispatcher.

Dynamic driver adjustment: Re-optimization based on driver events that may include out of order, customer closed, returning, rescheduled, breakdown, or equipment switch (trailer swap).

See how MercuryGate can help you improve your network performance by integrating a robust dynamic routing solution into your supply chain, enabling increased efficiency and security while reducing cost and managing bandwidth demands.

Request a MercuryGate Demo to Get Started