Benefits of Route Optimization in Holiday Season Supply Chain Management

Benefits of Route Optimization in Holiday Season Supply Chain Management

The holiday shopping season is around the corner. And companies are trying their best to get well prepared for this peak season when deep discounts and deals are offered around the world.

Events such as Cyber Monday and Black Friday also contribute to holiday sales and constitute a large part of all spending in holiday shopping. This ensures an intense process for both customers and companies. Thus, while customers' expectations for fast and free delivery services without shipping delays arise, companies design strategies to improve customer service and reduce shipping costs.

Understanding the Customers’ Online Shopping Habits

Customers, who have been in lockdown for a long time in the pandemic, have adapted to buying online. UN trade and development experts UNCTAD claim that global eCommerce has reached $27 trillion after Covid-19. When we check out the rise in previous years’ holiday season sales, it is not so difficult to predict how online retail sales will skyrocket after the pandemic.

Customers who have committed themselves to the endless online shopping experience of eCommerce are waiting to buy holiday gifts for their loved ones with their sleeves rolled up. 

At the same time, it is worth mentioning that while customer expectations have peaked this year, their patience is at the lowest level. Therefore, it is critical to implement optimization systems to minimize supply chain issues and improve customer service.

Enhancing Holiday Season Last-Mile Delivery with Route Optimization Software

Route optimization provides many benefits in all supply chain processes, especially in periods such as the holiday season, which require such tight and intensive delivery management. 

Let's take a quick look at some of the most important benefits that a route optimization software can provide:

Increasing Efficiency in Last Mile Deliveries

One way to solve the labor shortage is to minimize the number of routes through route optimization considering working hours, customer time windows and physical capacity restrictions.

Route optimization applications create the optimal allocation of orders and their sequencing in order to minimize the total number of miles traveled, which is almost impossible for a planner to find manually. In doing so, route planning software algorithms automatically generate the best routes by utilizing order, fleet, location, road distance and traffic data. This increases the efficiency of the delivery networks and operations by up to 15%.

Managing Driver Performance and Customer Satisfaction in Holiday Sales

Boosting productivity with route optimization during the holiday shopping season is a process that should also be supported by good delivery management optimization.

To improve the driver performance, you need route management software, which enables you to 

  • track the driver and route performance both with historical and real-time data, 
  • get live order status and follow vehicle paths in real-time on the map,
  • predict estimated delivery times with machine learning algorithms using historical data,
  • verify and correct customer addresses with mapping support.

A good delivery route planner helps drivers seamlessly follow planned routes via their mobile device and update the order status in real-time to keep track of which orders are completed, en route, or canceled.

It also takes into account the earliest and latest delivery or pick-up times for each customer to increase on-time service levels. Thus, during holiday sales, service quality is increased and customer satisfaction is brought to the highest level.

Overcome Holiday Shopping Season Challenges

Expanding online shopping and retail sales with the holiday shopping season will increase the pressure on the distribution network. In this peak season, companies that do not perfect their supply chain management will have a hard time staying competitive. Thus, it's time to transform your delivery management to meet high customer expectations and help increase efficiency in delivery services.

Optiyol cloud-based route planning software is here for you with its comprehensive data model which feeds flexible and tunable algorithms for each operation, specially designed to enable you to optimize delivery management processes seamlessly.