What is meant by route optimisation?

What is route optimisation?

Route optimisation can significantly raise the productivity in transport companies while enhancing customer services and reducing costs. Transport software, such as the fleet management system (FMS) and transport management system (TMS) deliver the data – on orders, loading and unloading places, timings or driving and resting times – needed to automate route optimisation.

Route optimisation and positioning (GPS)

By connecting the on-board computer to GPS, carriers can continually pinpoint the position of their vehicles and other vehicles like trailers or swap bodies. Thanks to the tracking system, the back office precisely knows when and where a truck has stopped, how long it stopped, which route it has travelled, etc., so that they can permanently optimise the route. Carriers that use an advanced truck navigation system can also provide their customers with value-added services, like providing details on the estimated time of arrival (ETA).

Route optimisation and transport software

Transport software offers various possibilities for route optimisation. FMS allows carriers to optimize their routes. The FMS automatically processes data on the axial load, driving and resting times, waiting times, service hours or status information, which are then sent from the truck to the home office in real time and integrated into the TMS. Based on these data, carriers can permanently calculate the rentability and, if required, optimise the routes chosen. In addition, the data are a good starting point for calculating the drivers’ wages and raise transparency when working together with subcontractorsGPRS has made data communicaton between back office and drivers significantly cheaper over the past few years. This has opened up many new possibilities for route optimisation.

Route optimisation and cost savings

Route optimisation can also help carriers encourage “economical, ecological and safe” driving. Carriers that rely on route optimisation and, at the same time, automatically capture fuel consumption data and information on drivers’ driving style (ECO driving) will save thousands of euros on fuel per vehicle and drastically reduce the emission of CO2 and other hazardous substances.