Manual route planning might seem cost-effective at first glance, but don’t be fooled. As your delivery operations scale, the hidden expenses become increasingly apparent. A cost-saving option would be to invest in a route planning app.
Don’t believe us? Calculate the cost of wasted hours and fuel to see how it impacts your bottom line. Add to that the hassle of irate customers calling about the status of your delivery, and manual planning quickly becomes a recipe for disaster.
Manual route planning costs
In this article, we’ll examine the hidden costs of manual route planning and examine how a route planning app can help your business save money and time.
1. Time-consuming processes
Did you know manual route planning can consume hundreds of hours per year of managerial time, if not more.
It’s the equivalent of weeks of lost productivity.
Spending time on manual planning also detracts from other important tasks, like business development and customer engagement.
It just takes one irate customer to leave a nasty review online and have a negative impact on your business’s reputation.
READ: Want better reviews? Start with the right delivery management software
2. Increased fuel consumption
If you don’t optimize delivery routes, trips may take longer than necessary to complete. This leads to higher fuel usage.
And inefficient routing can result in hundreds of dollars of fuel costs annually. It not only reduces fuel costs, but also time spent by drivers on the road.
Meaning your drivers will thank you! No more hours wasted behind the wheel in a hot vehicle.
3. Vehicle wear and tear
If your delivery drivers go on suboptimal routes, it accelerates vehicle depreciation, while also racking up extra mileage and unnecessary maintenance expenses.
It might not sound serious, but the long-term impact can be immense.
Remember: Frequent repairs and reduced vehicle lifespan can significantly elevate operational costs.
4. Missed revenue opportunities
Another often-overlooked money drain comes from missed revenue opportunities.
Think about the limited capacity of your vehicles: it limits the number of deliveries your company can manage per day, which in turn reduces potential for revenue.
And missing out on just one additional service call per week can lead to thousands of dollars in lost revenue annually.
5. Customer dissatisfaction
Customer dissatisfaction, if not managed properly, can spiral into bad reviews and reputational damage.
You might wonder what this has to do with a route planning app. Well, since manual planning doesn’t have any real-time adjustment built in, it can lead to late deliveries.
And late deliveries lead to irate customers. Consistent delays in deliveries will harm not only your reputation but also customer loyalty.
Benefits of a route planning app
Now that we’ve established the money-drains of manual route planning, let’s look at the benefits you’ll get when switching to a route planning app or software.
1. Optimized routes for efficiency
Route planning apps are optimized for efficiency, plain and simple. These apps use real-time traffic and weather data to build the most efficient routes.
Optimized routes also reduce delivery times, meaning you can get to more deliveries per day.
2. Reduced operational costs
Apart from just increasing your revenue, a route planning app also helps you save on operational costs.
Take just fuel savings as one example: Efficient routes lead to lower fuel consumption. Another savings point is maintenance reduction.
Less time on the road and less mileage means less wear and tear on vehicles and less hassle for delivery drivers.
3. Enhanced customer satisfaction
One of the biggest benefits, though, is boosting your customer service.
Since customers now get precise delivery times and updates in real-time, there’s less chance of a failed delivery.
A route planning app is thus a quick and easy way to prove your reliability to customers. Remember: With timely deliveries comes improved customer trust.
WATCH: Everything you need to know about Route Planning
READ: 14 Ways Route Optimization Saves Your Business Time and Money
4. Data-driven decision making
Route planning apps also give you access to delivery performance metrics. This type of data can help identify areas for improvement.
By paying attention to the data, you can implement a continuous improvement cycle.
Locate2u’s route planning app
Locate2u’s route planning app is used by customers ranging from furniture and pet food delivery to pharmacies, couriers, auto parts sellers, and more.
- Comprehensive features: Locate2u offers real-time tracking, proof of delivery, and customer notifications.
- User-friendly interface: Designed for ease of use by both dispatchers and drivers.
- Scalability: Suitable for businesses of all sizes, from small enterprises to large fleets.
- Customer testimonials: Businesses have reported significant improvements in delivery speed and customer satisfaction.
Stay competitive with a route planning app
Let’s recap: The hidden costs of manual route planning can accumulate quickly, affecting both your finances and customer satisfaction.
By transitioning to a dedicated route planning app, you can optimize your delivery operations, reduce expenses, and enhance the overall customer experience.
In conclusion, investing in route planning software is a smart way to stay competitive.
About the author
Cheryl has contributed to various international publications, with a fervor for data and technology. She explores the intersection of emerging tech trends with logistics, focusing on how digital innovations are reshaping industries on a global scale. When she's not dissecting the latest developments in AI-driven innovation and digital solutions, Cheryl can be found gaming, kickboxing, or navigating the novel niches of consumer gadgetry.
