Route Optimisation: Human vs AI

The digital transformation of the transport sector and route optimisation shows no sign of slowing down. Software has changed the logistics landscape, from lot tracking to PODs, the power of the computer chip can be felt everywhere.

Automation offers the promise of efficiency at scale. A streamlined workforce armed with the latest technology has the potential to increase productivity across many aspects of warehousing and distribution. One area that has benefited from innovation is route optimisation. Route planning programs create the most efficient routes based on data such as delivery addresses, fleet details, timings and load capacity.

Optimisation software boosts supply chain efficiency

Route planning software can save businesses a lot of time, as Invo Fulfilment’s Supply Chain Co-ordinator Richard Bainbridge explains. “It used to take us four hours a day to plan routes manually, and collections and deliveries were managed completely separately. The software provides a great start point and it groups the runs very well.”

However, Bainbridge highlights the importance of human experience when it comes to programming the system. “It’s all to do with how you configure your set-up, so it’s important to make sure it’s set up accurately and fairly for timings. It does it generally on averages and you can get better data over time and if it’s not providing long enough to unload then we can adjust that. There’s so much data going into it from our side that it needs to be right to utilise it to the maximum. I do like an element of control and we will change our inputs over time depending on how much automation we require and need.”

Technology provides live visibility

One of the big benefits of integrating route optimisation software with GPS technology is that vehicles can be tracked in real time. Knowledge is power, and knowing the location of every load gives teams the power to act at speed. This means that drivers can be diverted if a route is blocked, customers can be kept updated on etas and office staff have instant visibility of their whole fleet.

Integrated I.T systems offer oversight at speed and in detail, which was not possible before the digital era, as Bainbridge explains: “It gives us really good visibility. It means we can see everything we need to straight away. The sales guys know where the goods are immediately, rather than having to do it manually or by e-mail like we used to do back in the day.”

Dashboards allow teams to compare historic data, so they can track patterns. This is useful for resource planning and targeting any weaknesses in the supply chain. “Dashboards give us our history, it’s good for the tracking and visibility side. It is a 2-way data stream, so that information comes in and out of the system, allowing us to plan responsively,” he adds.

The benefits of a hybrid system

A hybrid system, that empowers the planning staff to work in sync with technology is an approach which works well for Bainbridge and the Invo Fulfilment team. “For us at the minute I can plan functionally and efficiently with a bit of a hybrid, which is automation and manual intervention. The automation side can be flawed. How it processes the data, reads it and plans with it can require a little bit of common sense – it can over-commit with parameters, so we must always check things over.”

And when it comes to employee engagement, the human touch can make all the difference. “It can’t factor in driver preferences – yes you can be as efficient and automated as possible to improve the way of working, but we will always have human oversight. The software can work out the timings, and then I can identify the best person to do that job, whether it be the personal side of it – who wants to be home every night vs who wants to be out all week, and other things which aren’t factored into the automation.”

The future of AI route optimisation software

When it comes to the future of route optimisation it’s a question of how, not if AI will be used. The big differentiator will come down to how quickly businesses adapt and upskill their workforce so that they can adapt and maximise the potential of the technology. Combining real-world logistics experience with the processing power of AI means that distribution businesses can operate faster, leaner and with a higher degree of accuracy and visibility than ever before.

Mapping and Routing Technology can Elevate Logistics Operations

With peak season rapidly approaching, logistics companies are once again preparing for the busiest time of the year. Typically, the rush leading up to Black Friday, Christmas, and Boxing Day sales means a surge in demand, with consumers snapping up deals and bagging a bargain. However, the peak period has slowly started to extend beyond the usual end of year rush, and logistics companies are being forced to scale up their operations sooner than ever before.

As a result, businesses will hire additional staff over the next few months, ranging from warehouse workers to drivers, to handle the increased volume. However, blindly adding more staff is no longer the answer – or in some cases, due to the driver shortages, even harder to do anymore. Now, having the right technology in place early is essential to deliver a flawless service during this critical period.

Andrew Nowell, Sales Director at Trimble, believes that in a season where every minute counts and consumer expectations are at an all-time high, commercial mapping and routing technology can support logistics companies by staying ahead of the curve and delivering a 10/10 service when it matters most.

Fail to Prepare Then Prepare to Fail

Unlike five years ago, when planning for peak season involved the use of manual tools and guesswork, today’s data-driven insights allow companies to forecast with confidence what Q4 will look like. When it comes to last-mile delivery, mapping and route planning technology is specifically designed for fleets and commercial vehicles, offering historical data and strategic and operational strategies to create precise plans ahead of time. Ultimately, this technology allows logistics businesses to optimise delivery routes, ensure the best utilisation of the fleet, and maintain driver retention, which is key in an industry where every parcel company is competing for additional peak season drivers.

Boosting the Onboarding Process

Commercial mapping and routing technology can be a game-changer for peak season drivers. For example, with companies onboarding seasonal specific or inexperienced drivers who are unfamiliar with routes, advanced mapping tools can really simplify the process, making a new driver’s day-to-day a lot less stressful. The reason for this is that these tools enable new drivers to confidently navigate unknown areas by providing them with optimised routes and historical traffic data.

This means that even someone unfamiliar with a route can be handed a van loaded with parcels, and they would be able to successfully complete their deliveries. This capability not only helps the drivers ease into their new job, but also improves their efficiency. Without this technology, logistics businesses’ would ordinarily have to assign fewer parcels and avoid late-night routes for inexperienced drivers in order to make the learning curve less daunting. However, with smart mapping technology helping to integrate staff into a business’s delivery ranks seamlessly, companies gain the ability to onboard new recruits in days rather than the weeks or months it traditionally takes – which is crucial during the peak season when time is of the essence.

Boosting Employee Retention

Due to the fact that many seasonal delivery drivers are paid per stop, meaning their income directly correlates to how efficiently they can complete their deliveries, route optimisation not only beneficial for the company but also for the drivers themselves. Ultimately, this can significantly reduce the number of stops a driver can make in a day, impacting their earnings and overall job satisfaction. By reducing unnecessary driving and time spent in traffic, drivers can increase their per-day earnings while also reducing the stress that comes with inefficient routing.

It’s clear that advanced mapping and routing technology presents a solution that extends beyond simply managing increased demand. With features like data-driven route optimisation, historical traffic insights, and strategic planning, logistics businesses can deliver an efficient service when it matters most. Not only can businesses onboard new employees and get them up to speed faster, but it will also enhance the experience for both seasoned and seasonal employees. In a competitive environment where the peak season stretches beyond traditional boundaries, embracing mapping technology is essential to stay ahead of the curve.

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Transforming Transport Operations with Mapping Intelligence

 

PTV Group and Conundra Continue Integration

PTV Group, Econolite and Conundra, along with backers Bridgepoint and Porsche have announced the further integration and strategic reorganization of the companies into two strong and distinct businesses serving their respective end markets: Mobility and Logistics.

In order to form a new pure-play software Logistics business, PTV Logistics and Conundra are integrating their respective resources to offer state-of-the-art software solutions for route planning and optimization with best-in-class algorithms and data, as well as additional use cases to enhance savings in logistics costs and emissions. Rebranding for Logistics is in progress and will be announced shortly.

Structure and leadership is as follows:

The PTV Logistics group joins forces with Conundra to form a global software provider for logistics solutions in route planning and optimization. This combined group will be led by newly appointed CEO, Steven De Schrijver, former CEO and Co-founder of Conundra. Abbas Mohaddes, former CEO of Econolite is appointed to Chairman of the Advisory Board for both businesses.

Mohaddes said, “Our focus remains to be market and demand driven, offering superior products and services to better plan and manage our transportation systems, sensitive to desire and needs of users, travellers and alike. We are committed to embrace Environmental, Social, and Governance (ESG) in support of global Mobility for Humanity.”

Carsten Kratz, Partner, and head of the DACH region at Bridgepoint, added “We made great progress during 2022 with the integration of PTV and Econolite, while acquiring Conundra and other enhancing assets. This rebranding and reorganization are the logical next steps in enhancing our growth and our quest for global market leadership. This is a big milestone for us, and we’ll continue to invest in both businesses.”

Lutz Meschke, member of the board of management responsible for investment management at Porsche SE, stated “The new strategic setup of the mobility and logistics businesses marks yet another important milestone in the development of PTV, Econolite, and Conundra. We look forward to further supporting the development of both businesses.”

Steven De Schrijver, Logistics group, Chief Executive Officer, added “Our goal is to provide exceptional optimization tools, that meet and exceed the expectations of the global Logistics marketplace.”

PTV Logistics is a leading global software company for planning, calculating, and optimizing transport logistics to save time and costs. With more than 40 years of experience and record-breaking algorithms in route planning and tour optimization, the software empowers logistics companies to realize the theoretical savings potential of route planning automation in practice.

 

Turn your Delivery Fleet into Profit Engine

The delivery fleet is the front line of customer service and satisfaction. Yet the way these fleets are managed – often with outdated manual route-planning processes – can significantly impact your bottom line.

Today, customers’ Amazon-fuelled appetites for faster, more frequent deliveries have driven last-mile delivery costs in the B2C sector to between 28% and a whopping 55% of the total cost of goods.
With delivery emerging as a competitive differentiator in the B2B sector, too, costs there will inevitably follow suit.

Consequently, product distribution and delivery operations are under unprecedented pressure to provide rapid, predictable services. Many businesses, frankly, are struggling to cope. Relying solely on old-fashioned, manual route-planning approaches, many fleet managers over-compensate, securing more drivers and vehicles than are actually needed—and draining company profits further in the process.

Tips to Turn Your Fleet into a Profit Engine & Reduce Costs By 30%

It’s ironic: the final mile is the most complex part of the supply chain, yet it’s the last to be optimised. But here’s the good news, according to Aptean: by automating route planning, companies can reduce private fleet costs by 10% to 30%. It’s hard to imagine another area of your business that could take such a quick and radical haircut— and actually work better as a result.

Investing in an advanced route optimisation platform will ultimately be your competitive advantage, not your weakest link. It can help you:
• Reduce fleet operating costs by up to 30% and see ROI payback in as little as 3 months
• Utilise technological innovations to transport goods in the fastest, most efficient way
• Strategically plan better routes in minutes, not hours
• Optimise the use of all resources including planners, drivers, and vehicles

Delivery fleet expectations

The world is changing fast, and the bar for service has been raised. Your delivery fleet must now meet ever-increasing expectations for faster, precisely timed deliveries—and do it without breaking the bank. The technology and know-how exist to help you get the most out of every fleet-mile you run. Automated routing is a proven, beneficial technology that can help mine the savings potential hidden in your private fleet—your company’s last, great, untapped profit centre.

An inefficient fleet presents both a problem and an opportunity. But let’s be clear: this is no easy, flip-the-switch answer. Changing well-entrenched logistics department practices is hard. Changing minds is even harder. We hope to convince you that it’s worth it. Download a free copy of Aptean’s latest eBook, ‘Is Your Private Fleet a Drain on Company Profits’, and discover how, now.

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