Picking route optimization software is more than ticking feature boxes. It's about making a strategic decision for your business's future.
Picking route optimization software is more than ticking feature boxes. It's about making a strategic decision for your business's future.
Last mile delivery is the final leg of the delivery journey when a package is delivered from a distribution center to the customer's doorstep. It’s often the most expensive and time-consuming part of the delivery process, and it has a huge impact on customer satisfaction.
Route optimization software (also known as last mile delivery, route planning or delivery management software) plays a key role in making this process cost and time efficient for the retailer and satisfying for the client.
However you need to choose their technology partner wisely. The right platform will ease your workload and allow you to scale. The wrong one will create more costs and struggles than benefits.
Whether a platform is right or wrong for your business depends on many factors such as your business model, delivery volume, expansion plans, etc. There isn’t a one-size-fits-all.
The following guide will help you navigate through the process of research and evaluation. It will cover everything you need to know to pick the best route optimization software for YOUR business.
Here's a quick summary:
Choosing the most suitable route optimization software for your business is a critical decision that requires careful consideration. To approach the process efficiently, you need to do some preparation first.
Your goals are the achievable outcomes that are broad and long-term. Every business is unique but here are a few examples of areas where businesses want to thrive:
The objectives are measurable and short-term actions to achieve your long-term goals. Your objectives in the software search are based on two factors:
For example, if your goal is to decrease delivery costs, your objectives could be decreasing total mileage, fuel consumption, idle time, etc.
If your goal is to build and maintain customer loyalty, your objectives could be taking full control of the delivery experience, providing real-time tracking, collecting customer feedback, promoting loyalty programs, etc.
If your goal is to achieve sustainable delivery, then your objectives could be to reduce carbon emissions and mileage, etc.
Depending on the size of your organization there might be many people who’ll be affected by the adoption of last mile delivery software. These people are important as they can provide key insights into your delivery challenges and needs during the evaluation process.
You first need to define who they are. Then you need to define to what extent they should be involved in the process. In most cases, people will fall into one or more of these categories:
Each stakeholder might have specific requirements for the software. Or, they might need to integrate specific systems they currently work with. To get the best input, ask the stakeholders to write down their pains and requests, and to prioritize them.
Set a deadline to make a decision and stick to it. Otherwise, there’s a huge chance this might stay forever on your To-Do list because of other priorities popping up.
Don’t wait until software implementation becomes too critical. Postponing the decision for too long might negatively affect your business and will lead to a more complex implementation.
Identify how much you’re willing to spend and to what extent you can make compromises with the price and value of the product.
Keep in mind that the route optimization software is likely going to improve your operational efficiency hence other costs will decrease. It will also significantly free up your schedule so you’ll be able to use this time for finding new customers and improving your business.
In most cases, it takes 6 months on average to return your investment.
Once you’re done with the preparation, it’s time to do your research, compare route optimization solutions, and pick the top favorites that you’ll explore further. Here’s how to approach this step:
Your goal is to validate if the software solves your current problems but can also support you in the future. For starters, look for the features that correspond to your must-haves. Likely, many of the vendors will have that main functionality.
Then, look at the extra features that help you address the should-haves and nice-to-haves. Dive into the specifics of each feature, and understand how they align with your goals and objectives.
Evaluate integrations carefully, as seamless connectivity with your existing systems is key for smooth operations. Last but not least, check to what extent the software can support you as you scale.
In theory, this step should help you compare vendors’ offers. But in reality, relying solely on what’s written on the vendors’ websites, won’t give you the full picture. In most cases, you’ll end up comparing apples to oranges because:
These factors can often make pricing comparison difficult. For an accurate comparison, you’ll need to jump on a call and/or request a personalized price quote (more on this in the next paragraphs).
However, at this stage, your goal is to get familiar with the pricing models and get an overall idea of what to expect.The common pricing models include:
This one is super important! You might be tempted to go on a demo with all the vendors out there.
However, this is not a good idea as you’ll end up overwhelmed with information. Ultimately, this might leave you more confused than informed.
It’s a much better approach to shortlist up to 3 vendors. For starters, this will be more than enough to familiarize yourself with the landscape.
If you like them, proceed further. If none of them resonate with your needs, then go and pick other 3. The goal is to be mindful of your time and resources.
Once you’ve picked your top 3, it’s time to see them in action. This includes booking a demo, diving into a more detailed discussion about its functionality, and trying the product yourself.
A demo allows you to see the user interface and understand if the platform has the necessary features to address your specific challenges. You’ll also have the chance to ask questions and clarify any doubts you might have.
The demo has a few goals:
To make the most out of your demo call, go into details about your most common tasks, and your specific, most unusual ones. Discuss how the platform can be tailored to fit your specific requirements and how it can scale with your business growth.
Ensure that representatives from relevant departments (e.g., logistics, customer service, IT) are present during the demo. Their unique perspectives will be key in evaluating route planning software.
Getting familiar with the software implementation process will help you plan your time and resources wisely.
Depending on the complexity and the size of your business, it might take between a few days and several months. In most cases, the duration depends on your involvement. The more time you dedicate, the faster it will be.
Here’s the place to ask about the support you’ll get during the setup and onboarding too. Having a dedicated person to guide you through the process will make it much easier for you. Discuss training opportunities for your team too.
When discussing pricing, it's crucial to delve beyond surface-level costs and understand the comprehensive financial commitment involved. This includes not only the initial investment but also any ongoing expenses such as maintenance fees, upgrades, and support services.
Explore different pricing tiers to see what features and benefits each level offers, ensuring you choose a plan that matches your needs without paying for unnecessary extras. Additionally, ask about the flexibility of the pricing structure to accommodate future growth or changes in your business.
It's also wise to discuss payment terms and any available discounts for longer commitments or early payments. Negotiating these terms upfront can optimize your financial planning and secure the best possible deal for your business.
This step is essential. Often, something that looked easy during a demo might not feel that way when you start using it. That’s why you need to test it yourself.
Explore how the software handles your usual tasks and any challenges you come across day-to-day. Get everyone who'll use it involved, from your drivers to the managers, so you get feedback from all angles. See how well it works with the tools you already use and if it makes things easier or if there are any hiccups.
It's also important to jump into testing the software right away during a trial period. A big mistake people make is waiting until the last minute to start the trial. Waiting too long means you won't have enough time to test various scenarios and see if it fits your needs.
We started with Ufleet in 2016. Since then, we enable 1000+ businesses globally to run predictable deliveries, reduce last mile costs and keep customers happy.
Besides the core features you need for efficient delivery operations, there are a few other benefits that you'll get with us exclusively:
🚚 What is route optimization software?
Route optimization software is technology designed to find the most efficient routes for deliveries, improve customer satisfaction, and increase operational efficiency.
🚚 How do route optimization algorithms work?
Route optimization algorithms analyze multiple factors like distance, sequencing, truck capacity, delivery windows, and more to find the most efficient route.
🚚 Why do I need route optimization software?
Route optimization software cuts costs improves operational efficiency, and enhances customer satisfaction. Also, it helps your business grow.
🚚 Can route optimization software integrate with other business systems? Yes, most software solutions can integrate with various CRM, ERP, and other e-commerce platforms.
🚚 How long does it take to implement route optimization software?
Implementation times can vary but typically range from a few days to several months, depending on the complexity of your operations, the level of customization, and most importantly—your availability and responsiveness.
🚚 What is the ROI of implementing route optimization software?
Businesses often see a quick return on investment through reduced operational costs and improved efficiency. It depends on the complexity of your business, but it usually takes approximately 6 months.
Choosing route optimization software is more than ticking feature boxes. It's about making a strategic decision for your business's future.
This guide has walked you through each crucial step, from understanding your needs and setting clear objectives to diving deep into demos and trials. The key takeaway is: don't rush it, involve your team, and prioritize a solution that not only solves today's challenges but can also support you in the future.
Last but not least, it’s about ensuring your team can adopt it smoothly, it integrates well with your current systems, and ultimately, it improves your bottom line. A wise choice here sets your business up for efficiency, customer satisfaction, and competitive advantage.
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