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Calculation of optimal routes and dynamic planning in distribution

Calculation of optimal routes and dynamic planning in distribution

Calculating delivery routes is the main task when planning delivery routes. The example of the leading companies shows helps to navigate the modern technologies for calculating the delivery route that companies use in their business.


Do you know what Warren Buffett has to do with calculating optimal routes? Everyone has probably heard of the famous investor and entrepreneur, but few people know that Warren Buffett used to go door-to-door and sell chewing gum. He also managed to deliver newspapers every morning. Thirteen-year-old Warren already realized that calculating delivery routes could bring substantial profits compared to competitors. Young Buffett built the routes in such a way that allowed him not only to fulfill more orders than other employees, but also to achieve the fact that after a while his income began to exceed that of the manager. And today Buffett is the head of the Berkshire Hathaway investment fund and tops the ratings of the most successful people.

The example is quite illustrative. In other words, shipping costs are worth considering, as they can be both direct savings and a tool for directly increasing revenues. The webinar discussed ways to reduce delivery costs and methods for calculating optimal routes.

The topic of the webinar proved to be very popular and relevant for many distribution companies, especially on the threshold of the water and beverage bottling season. Given the fact that the dynamics of processes will increase significantly during the season, the number of tasks will increase and there will certainly be a need for modern tools and technologies to optimize work.

During the webinar, the speakers presented the audience with modern technologies for calculating dynamic delivery routes and described the specifics of their implementation in various business sectors. The main criteria for perfect delivery were analyzed, which help us to increase customer loyalty and increase profits. But on the way to perfect delivery, companies face realities every day:

  • a growing number of orders;
  • different customer conditions;
  • own and hired a fleet of vehicles;
  • vehicles of different types and characteristics;
  • changing conditions.

Of course, when calculating delivery routes, it is necessary to take into account the weight and size characteristics of vehicles, to select them in the best way, taking into account changing conditions both in terms of loading and customer restrictions. As a result, we come to the conclusion that it is quite difficult to calculate delivery routes efficiently, taking into account all the variables. Accordingly, we either have to expand our human resources or incur time costs. Our approach is automation. The webinar described in detail a tool that will simplify the work of a logistician, allow them to pay attention to more strategic issues, eliminate human errors, and thus improve the quality of planning and build business processes so that they work like clockwork.

Learn about TMS capabilities for calculating optimal routes

Online demonstration of TMS – a system for building optimal delivery routes using dynamic planning. Get expert advice and learn the tools to grow your business.

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