Route optimization
Route optimization is the process of planning the most efficient and cost-effective routes for transporting goods. It takes into account variables like distance, traffic, time windows, fuel usage, vehicle capacity, and customer locations to reduce mileage, delivery times, and emissions.
How does route optimization work?
Route optimization is typically done using software that applies algorithms to calculate the best possible routes for a given set of shipments and constraints. It can be used for pre-planned routes (static optimization) or in real time (dynamic optimization) e.g. if a shipment is delayed then route optimization can help find opportunities to reroute the truck.
What are the benefits of route optimization?
The benefits of route optimization are:
- Reduce fuel costs by minimizing total distance travelled and avoiding congestion
- Lower carbon emissions through more efficient vehicle usage and better load planning
- Increase vehicle utilization by assigning the right shipments to the right vehicles
- Support sustainability goals by giving emissions reduction a heavy weighting in your route optimization
Explore other terms like
Route optimization
Add CO2 emission calculations to your software and logistics operations
Join 130+ software and supply chain partners in using BigMile for CO2 emission analytics.
