What to consider to select a Route Management System

What to consider to select a Route Management System

The delivery of orders is one of the most critical and challenging processes of a distribution company. When you are looking for a route management solution (RMS), there are many factors you need to consider. In this article, I will give you the essential elements you must evaluate in a route accounting software before deciding what system to buy.

What is a route accounting system?

Order fulfillment is the ultimate goal of any distributor, and it involves three main processes, as illustrated in the graph below.

As you can see, delivery is the connecting element between the warehouse and the store; and a route management system is the tool used by distributors to plan and manage transportation routes for shipments and deliveries. It can also help to optimize inventory management and support DSD sales.

Why is route optimization important?

A distribution operation has several deliveries to do per day, scattered over a wide area. The travel time and miles run depends on how the deliveries route are organized and distributed among the fleet. Longer routes mean higher fuel costs, driver’s hours, and truck aging. According to “Insider last-mile delivery accounted for 53% of the total costs of shipping, even before the record increase in fuel prices of 2022.

Benefits of a route management system

An RMS, integrated with the inventory management and DSD system, offers a plethora of benefits to a distribution company. Here are a few of them:

1. Real-time inventory visibility: Having a real-time inventory overview of your goods means that you can quickly and accurately manage stock levels, reduce losses and respond faster to customer demands.
2. Enhanced sales capabilities: RMS allows you to more accurately and effectively manage sales teams, including setting customer expectations and managing visits and delivery schedules.
3. Optimized routes: Automated RMS will generate more efficient delivery routes, helping you to save money on fuel and vehicle maintenance.
4. Accurate truck tracking: Easily monitor and track the performance of drivers and other key metrics to gain insight into operations and identify areas of improvement.
5. Improved customer experience: You can build customer loyalty and increase customer satisfaction by delivering orders faster and more accurately.

Factors to consider when selecting you route solution

Finding the right RMS can be difficult and time-consuming, but it is worth the effort when it pays off. Here are some key factors to consider when evaluating your options:

1. Cost: Make sure you can find a solution that fits your budget. Compare the potential solutions and select the best price/feature solution for your company.
2. Customization: Every business has different needs, so look for a solution that allows for customization to suit your requirements.
3. Ease of use: Make sure the solution is easy to configure and use. A user-friendly system will reduce training costs and setup time.
4. Integration: Check if the RMS can be integrated with existing software or hardware systems to avoid compatibility issues. Such as WMS or IMS, ERP and DSD.
5. Dynamic route adjustments: Deliveries are not a static process. Sometimes a customer might not be able to receive goods, or a driver may drive time en route from a previous location. In those situations, dynamic routing software should allow adjusting and editing routes and delivery schedules on the go.
6. Security: Make sure the company has a secure, robust system with appropriate levels of data encryption.

Consider all of the above factors when searching for the right RMS. By understanding all your needs and assessing potential vendors, you can choose the most suitable and cost-effective system for your business. With the right RMS, you can improve efficiency and improve your sales opportunities. It can be the key to helping your business remain on top of a highly competitive market.

LaceUp Route Management software was designed to minimize inefficiencies that can significantly affect delivery costs and decrease your profits. With Laceup’s Route Management, you can optimize the delivery routes to minimize drive time and truck expenses. Furthermore, you can modify the invoice to reflect items rejected by the store and capture credits due to damaged or returned goods. When done, the driver can capture the customer’s signature and print the final invoice wireless using a thermal printer. Lastly, during the route, you can track the inventory in the trucks and monitor the driver’s time in each store.

I hope this article on rout optimization has been helpful to you. I will continue to post information related to warehouse management, distribution practices and trends, and the economy in general. If you are interested in this article or want to learn more about Laceup Solutions, please subscribe to stay updated on future articles.

There is a lot of relevant information on our channel. Check it out this video on route optimization.