Route optimization is the science of systematically and consistently identifying the fastest and most cost-effective routes for the drivers of a company’s vehicles. Fleet managers can use route optimization to improve customer service, increase the number of jobs per day or week that drivers can handle, reduce vehicle maintenance costs, and reduce the fleet’s overall fuel costs.
This process is sometimes mistakenly described as routing, route planning, or route scheduling. But as our integration partners at Route4Me point out, route optimization represents a far more comprehensive set of fleet business goals, which we will discuss in this article. In fact, although we describe route optimization as a science, when done well it can seem more like magic.
Let’s discuss what route optimization is, and what it can do for your business.
You can think of route optimization as an umbrella term encompassing a wide range of route management strategies, such as:
Perhaps the best way to understand the value is to consider what can happen to a fleet-dependent business that does not have it.
You might find your company spending more in time and resources managing your drivers and vehicles while at the same time receiving a lower return on investment from your fleet. For example, failing to implement a routing strategy can lead to: