Route optimisation in pallet distribution

Route optimisation in pallet distribution involves planning and organising the quickest and most cost-effective vehicle route when collecting or delivering pallet shipments. Optimising routes in pallet distribution needs to account for all the necessary stops and delivery time windows too.

Route optimisation is an ongoing process that happens every day with every delivery. Nowadays, software is available to allow tests on multiple routes, generate what-if scenarios, and select the best possible route based on the delivery requirements.

Benefits of route optimisation

Route optimising in pallet distribution provides several benefits. The most significant is that it improves the efficiency and speed of the pallet distribution process. That’s because route optimisation selects the fastest route possible without taking unnecessary detours.

The second benefit of route optimisation is cost savings. Planning and optimising the best route for pallet distribution provides excellent cost savings for the distributor. It is estimated that properly optimising routes can reduce fuel costs by up to 30%.

Route optimisation also reduces the time your vehicles are out on the road. As vehicles also spend less time on the road, the maintenance costs decrease, resulting in another cost-saving benefit. Using automated software also saves time by not having to optimise routes manually.

Safety is another benefit of route optimisation. Most route optimisation software can set routes that eliminate certain road conditions, such as weather and turnings. The most times a heavy lorry must turn, the more risk of delays or road accidents.

Other benefits from route optimisation include improved customer service, higher driver morale, improved productivity, improved timely deliveries, and reduced human error. You can also route optimisation software to overcome certain pallet distribution challenges, such as missed deliveries.

Check out the do’s and don’ts of pallet distribution.

Factors to consider in route optimisation

There are many factors to consider when optimising delivery routes for pallet distribution. Each of these factors will have some degree of effect on the chosen route, however big or small. Some factors may also change from day to day.

Ease of using route optimisation software

Before any other factor is likely to influence or affect route optimisation, you need to consider how easy it will be to use the software. Each software is different and is designed to suit different businesses. For example, IntelliShift may be better suited for safety management.

To determine whether route optimisation in pallet distribution is right for your logistic needs, consider the following points:

Does the software have an easy-to-use interface?
How good are the algorithms and calculations?
Can you easily integrate the software with your IT network, such as Warehouse Management Systems?
Is the map data of high quality that is easy to read and understand?
Where will the software be hosted? Will it be internally or externally hosted?

Environmental Considerations

Environmental considerations play a significant role in determining the route to take and can cover a range of factors, from traffic conditions to the types of roads the route may encounter.

Here are some environmental factors to consider in route optimisation:

Real-time traffic conditions
Traffic jams
Roadblocks or detours from roadworks
Bridges and tunnels
The number of turns
Weather conditions
Distance between each stop/delivery destination

Vehicle capacity

Vehicle capacity is another factor to consider in route optimisation for pallet distribution. Efficient and eco-friendly pallet distribution relies on optimising vehicle capacity to reduce the number of vehicles required for deliveries. Insufficient space is one of the many pallet distribution challenges.

The size and vehicle capacity must be considered during route optimisation to ensure that vehicles are still optimally used. Sometimes, depending on delivery destinations, you may need to decide between route optimisation or vehicle optimisation.

You also need to ensure that the vehicle assigned to the route is large enough to fit the size of the order. Distance should also be considered in vehicle choice as different vehicles will be suited to different transport needs.

Other factors to consider

Alongside the above factors, here are additional factors to consider in route optimisation.

Time and delivery windows
Driver downtime or breaks
Unforeseen or unexpected delays
Geofencing
Historical data
Driver availability
Business goals and needs
Software updates and changes

Software for route planning and optimisation

Different route planning and optimisation software, each with different features and specifications, are available. When deciding on route optimisation software solutions, choose the option most suited to your business, supply chain, and logistical needs.

Choosing a route planning optimisation software can be difficult, with hundreds of options available. Here is a breakdown of the top route optimisation software available.

Name	Description	Main Features	Price
eLogii	Designed for Distribution and Field Businesses, eLogii is designed for businesses with more than ten vehicles and 100+ daily orders.	· Performance metrics · Driver management · Dispatch management · Territory management	From $159
Tookan	A cloud-based delivery management solution, Tookan helps manage automatic dispatch and fleet operations.	· Performance metrics · Driver management · Dispatch management	From $69 per month
Onfleet	Onfleet is a route-planning software that makes planning and organising local deliveries easier.	· Performance metrics · Driver management · Dispatch management · Territory management	From $500 per month
RoadWarrior	RoadWarrior is a multi-stop route planning software that can help drivers cut down time on the road.	· Performance metrics · Driver management · Dispatch management · Territory management	From $14.99 per month
Samsara	Samsara is a route optimisation software that streamlines operations and seeks to reduce transport costs. Ideally suited for larger companies.	· Performance metrics · Driver management · Dispatch management	From $27 per month
IntelliShift	IntelliShift utilises AI to determine routes that cut down delivery times, fuel costs, and disruptions. Ideally suited for safety management.	· Performance metrics · Driver management · Dispatch management	From $16.99 per month
Motive	Motive is an all-in-one fleet management tool that combines the Internet of Things and AI to automate vehicle and equipment tracking. Ideally suited for long-haul deliveries.	· Driver management · Dispatch management · Territory management	From $20 per month

Implementing route optimisation software into your supply chain and logistics processes can greatly benefit you. If you haven’t implemented route optimisation software, you should take the time to explore the available options and how they fit your supply chain and logistics needs.