Delivery Route Optimisation explained and the 7 steps to achieve it

The task of planning delivery routes to make the most of the time drivers spend on the road is becoming more and more critical. Known as ‘delivery route optimisation’, it aims to manage all facets of the delivery operations model that are currently under scrutiny. When done well, delivery route optimisation ensures customer service promises are kept, driver satisfaction and tenure is better managed, and the impact high fuel costs have on margins is reduced.

Why does delivery route optimisation work?

In the logistics world, a delivery route is one that gets parcels, goods, or products from the warehouse to the destination. When a delivery route is optimised for road transport, a driver will take the journey that is the shortest or fastest.

Approaching delivery in this way is becoming an even more vital part of supply chain planning. Optimised routes significantly influence an organisation’s ability to introduce more operational efficiency, lower costs, and, most importantly, consistently meet and improve customer satisfaction.

What are the specific aspects of delivery route optimisation that logistics teams need to consider?

Think about your organisation’s specific objectives for introducing Delivery Route Optimisation. There are typically six main reasons companies pursue:

• Lowering Logistics Costs Fewer miles on the road translate into lower fuel consumption, reduced wear on our vehicles, and fewer maintenance costs. It’s simple maths—shorter, better routes save us money.
• Boosting Productivity By ensuring that routes are planned to maximise the number of deliveries each day, leaders make the best use of their resources—both human and material.
• Meeting Delivery Deadlines Delays can damage reputation. A well-optimised route reduces the risk of late deliveries and helps meet customer expectations every time.
• Reducing Environmental Impact One of the key benefits of optimising routes is the positive effect on the environment. By cutting down on fuel use and emissions, it’s possible to reduce the carbon footprint, which is becoming increasingly important to customers and stakeholders alike.
• Managing Resources Efficiently Effective delivery route planning helps allocate drivers, vehicles, and resources more wisely. It means traffic related delays can be avoided and delivery errors are reduced. The whole process of getting goods to the right place on time is more efficient.
• Enhancing Customer Service Ultimately, route optimisation is all about improving customer service. Timely deliveries, open communication, and competitive costs all contribute to happier, more loyal customers.

Why Optimise Delivery Routes?

Companies that follow a strategy of optimising delivery routes are reaping a multitude of benefits and outcomes in line with these objectives.

• Reducing Logistics Costs, errors and maximising vehicle use One of the quickest wins from optimising routes is the reduction in costs. By minimising the distance travelled and cutting down on idle time, savings are made on fuel, labour, and vehicle wear. It is also proven to reduce fleet maintenance costs and vehicle replacement cycles.  
• Boosting Customer Satisfaction, trust and loyalty Every organisation will tell you the customer is at the heart of their strategy. Customers expect timely deliveries, to the right location, especially if they’ve paid extra for delivery by a certain date or time. Optimising routes ensures delivery times are consistently met, and parcels get to the right place, building customer trust. There are also financial benefits associated to fewer insurance claims and refunds.   
• Adapting to Demand Fluctuations In the UK, delivery volumes fluctuate based on seasonal peaks and even daily traffic patterns. Route optimisation allows teams to quickly adjust routes to meet these variations.  
• Navigating Geographical Challenges and boosting team morale Congested urban areas or rural locations with poor access all add unnecessary time and cost to deliveries. Route optimisation helps tackle these challenges, ensuring smooth, on-time deliveries no matter the region.   This approach also cuts unnecessary travel and waiting time for drivers. This boosts team productivity and helps keep morale high.  
• Compliance with Regulations The UK’s transportation and delivery regulations are stringent, and they change frequently. Optimising routes helps ensure operations stay compliant, avoiding potential fines or legal issues.   
• Performance Tracking Route optimisation offers valuable data on delivery performance that can be used to make continual improvements to operations.

Who benefits from Route Optimisation?

• Logistics and Transportation Companies Here in the UK, logistics and transport firms are on the front line when it comes to route optimisation. With large fleets and a growing network of clients, optimising delivery routes helps reduce running costs, minimise travel times, and enhance delivery efficiency.
• Home Service Providers From maintenance firms to home care providers, UK businesses offering at-home services rely heavily on optimised routes to maximise service efficiency and boost customer satisfaction. A well-planned route means quicker service and happier customers.
• Wholesale and Retail Distributors Whether distributing goods to high street retailers or direct to consumers, wholesale and retail distributors benefit immensely from route optimisation. Ensuring deliveries are swift and efficient is key to keeping businesses well-stocked and customers satisfied.
• Maintenance and Repair Services For businesses involved in industrial maintenance or home appliance repairs, route optimisation can cut both costs and response times, enabling us to offer a faster, more efficient service.

How to Optimise Delivery Routes

Seven ways to introduce optimised delivery routes into your organisation

Step 1. Pre-Planning Route optimisation starts well before the van hits the road so think back to the objectives you have for following this strategy. Use them to define clear goals, such as reducing fuel consumption or increasing delivery capacity, and use historical data to inform your decisions.

Step 2. Leveraging Technology Here in the UK, we’re lucky to have access to some fantastic technology, from fleet management software to real-time GPS tracking. These tools help to plan the best routes, track deliveries in real-time, and respond quickly to any unforeseen issues.

Step 3. Consolidating Deliveries Grouping deliveries by geographic area helps to reduce the number of miles travelled overall. It’s also helpful for managing vehicle capacity and planning delivery slots.

Step 4. Prioritising Deliveries Not all deliveries are created equal. Think about how deliveries need to be prioritised according to the value of the goods or the customer’s urgency.

Step 5. Driver Training Drivers are literally the driving force in making the strategy a reality. Training them to follow optimised routes, meet deadlines, and drive efficiently helps reduce fuel consumption and improve overall performance.

Step 6. Customer Communication Keeping customers in the loop is crucial. Provide real-time updates  and give customers delivery windows. This helps manage expectations, increase first time deliveries, reduce complaints and improve overall satisfaction.

Step 7. Continuous Evaluation Optimising routes is never a one-off process. Continually evaluate performance, collect data, and adjust routes to ensure the strategy is always delivering on your strategic objectives.

If you need help designing your Optimised Delivery Routes and want to know more about how technology can help give you a fast start, then contact us immediately.