Insight

Do I do enough deliveries to use route optimisation?

How many deliveries per day does your business need to do to justify investing in route optimisation?

Tarot Routing tracking view of several delivery runs across Sydney, with the run list on the left

So your business has started delivering to your customers, congratulations!

Maybe you were forced into deliveries because of COVID-19 lockdowns or maybe you’ve spotted an opportunity in the market.

Either way you will soon be asking…

How can I deliver more efficiently?

… and about two google searches later you will have found route optimisation and a number of different platforms that promise to be the answer and save you thousands of dollars per day!

But… you’ve only got a couple of vehicles and these platforms look complicated, yes route planning is a pain but do you need to make this investment?

Are you too small? How deliveries per day do you need in order to make a route optimisation platform worthwhile?

There is no definite answer or formula to calculate this, ultimately it depends on your business, customer profile, volumes and the area you are delivering to.

But as a guide, if you have more than 10 deliveries per vehicle per day or more than 5 vehicles in your fleet then you should consider route optimisation.

Why 10 deliveries?

Two reasons:

  1. Google Maps lets you plan a route with up to 10 stops and
  2. Planning and sequencing 10 stops in a couple of minutes is about the limit of the human brain.

Unless you have fantastic local knowledge, beyond this number you are better off leaving it to a computer.

Map of Sydney with five delivery jobs and a depot at Port Botany

5 jobs: You can quickly mentally plan these drops for your drivers

Map of Sydney with about 50 delivery jobs spread across the city, ready to optimise

50 Jobs: It’s a bit tougher, without an optimisation algorithm you will need to spend a few hours planning.

Optimised routes for the 50 Sydney jobs in Tarot Routing, with each run listed in the Tracking panel

An algorithm can build optimal routes in a few moments, with accurate ETAs

Not just optimisation, delivery management as well

You also need to consider:

  • your customer’s delivery experience.
  • how do you communicate arrival times?
  • do you scan barcodes and track loading and delivery at a parcel level?
  • how do you generate Proof of Delivery documentation?
  • do you need to manage Returns?
  • how do you pay your drivers for the actual hours they worked?

A good route optimisation and delivery management platform can help you with all these questions and more.

Book a demo

And… if you want to learn about Tarot Routing, the best platform (in our opinion), click here to book a demo.

See it working in your operation.

We will show you how Tarot Routing fits your routes and constraints.

Book a Demo