Skip to content

The Benefits of Route Optimization and Planning for Your Fleets

When we speak with fleet managers, one concern that consistently comes up at the top of their priorities is cost reduction of their fleet management operations. While there are many paths to achieve the goal of cost reduction, route optimization and scheduling stands out among the available options.

Research Finding: Route optimization can reduce carbon emissions by 30%, delivery cost by 25%

Proper route planning not only decreases fuel costs in your organization, but it can also help contribute to your organization’s sustainability goals. A research from NielsenIQ indicates that nearly half (48%) of U.S. consumers have become more aware of their environmental impact and would like to take steps to mitigate environmental harm. Another study from MIT also showed that 49% of all companies have corporate supply chain sustainability goals. Demand for improved sustainability will only continue to keep growing in the near future. From fleet management or logistics perspective, one of the measures to alleviate the impact on the environment is to reduce fuel consumption via route optimization. Flexible and real-time scheduling and route optimization systems can lower CO2 emissions by 30% while also reducing delivery costs by 25%.

The benefits of intelligent route optimization

Improve fuel efficiency and reduce Total Cost of Ownership (TCO)
As mentioned above, route optimization can greatly reduce fuel costs and usage. Fuel costs typically account for at least 26% of the TCO in your fleet. In other words, fuel is the largest variable cost component. Fuel consumption reduction with well-planned routes will ensure overall decrease of TCO.

Reduce carbon emissions, achieve sustainability and ESG goals
The United Nations has already announced 17 sustainability development goals (SDGs) and are striving to make the 2030 Agenda for Sustainability Development a reality. Achieving sustainability and ESG goals is quickly becoming the top priority around globe. As an industry with a huge amount of fossil fuel consumption, it is essential to improve fuel efficiency by route optimization to help move closer to achieve the ESG goals and sustainability criteria set up by the UN.

Deliver items and services on time to improve customer satisfaction
Other than TCO reduction and improved sustainability, route optimization and planning also allows your mobility business, like logistics, to deliver goods on time and eliminate customer satisfaction issues. Route optimization helps to find the most optimal routing (fastest and cheapest) and the nearest parking spots on the way. Logistics customers can rest easy knowing exactly when they can expect their delivery.

How does route optimization work?
Today’s advanced AI technology can continuously improve planning models by collecting data, analyzing the data, and training itself to improve. For a logistics company an AI model can take into account all relevant factors, like the number and location of all the required stops on the route, time windows for deliveries, type of delivery vehicles, traffic conditions, and GNSS information, to determine the most cost-efficient route for multiple destinations and to increase work efficiency.

What benefits can Wistron offer in route optimization?
Wistron AiEdge Corp. has developed complete mobility solutions that utilize advanced AI and continuous machine learning technologies. The solution provides fleet managers with smart routing to help balance the daily schedules and plan for the most cost-effective and optimized route based on their business strategy. Real-time fleet tracking also enables real-time dispatch updates to improve route efficiency and save on fuel and time. The adaptive ML process keeps optimizing the AI model, thereby continuously increasing the precision rate and improving fleet operations.

Related Product – ZigFleet

To learn more about our mobility solutions, please contact us.