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The advantages of transportation route optimization and smart dispatching

Why IoT location services are so valuable to logistics companies

April 13, 2020

The advantages of transportation route optimization and smart dispatching
IoT-driven location tracking technology is transforming the transportation industry, giving logistics companies greater ability to manage their fleets and improve efficiencies.
 

The benefits of route optimization
Using analytics and data-driven machine learning, route optimization identifies the most efficient delivery route possible based on variables such as traffic congestion, distance, turns and intersections. These enable logistics companies to:

  • Reduce fuel costs—Route optimization displays the most cost-efficient path for every delivery and prioritizes routes to the closest drives, so fleets don’t waste fuel on congested traffic or backtracking of job orders. With fuel costs amounting to more than 30 percent of a logistics company’s expenses, this is a key advantage.
  • Reduce vehicle maintenance costs—Fewer miles driven means less wear and tear on the fleet.
  • Save time—Deliveries are completed faster.
  • Improve customer satisfaction—Logistics companies can deliver more efficient service to satisfy customers’ ever-increasing demands for speedy delivery.
  • Improve driver morale—Route optimization allows for more flexibility to accommodate drivers’ and crews’ preferences for certain shifts and routes.
  • Increase the number of jobs per day—Shorter service times and lower fuel usage mean the company can handle more shipments safely and sustainably.

The benefits of smart dispatching
Smart dispatching is enabled by fastening IoT sensors to trucks to collect a wealth of valuable data about a fleet, and using smart tags to create a coordinated communication system between shipments, vehicles and dispatchers. This enables logistics companies to:

  • Track driver performance and generate reports—Fleet managers can identify stops, speeding activity, idling and other issues that impact safety, fuel consumption, and vehicle and shipment conditions.
  • Assess areas for improvement—Using the real-time data collected by IoT sensors, fleet managers and owners can identify where to trim the fat and make quicker, bolder and more informed business decisions to improve their competitive advantage.
  • Respond to emergencies faster—If a truck is disabled or encounters road closures or other hazards, help or a replacement vehicle can be dispatched immediately to minimize delays.
What about your customers?
Given benefits like these, it’s not surprising that the adoption of IoT technologies in the logistics industry will continue to grow with a CAGR of 13.6 percent through 2024.
 
Your logistics and transportation customers should take a closer look at what capabilities like route optimization and smart dispatching can do for their operations.

For more information about Ingram Micro IoT and the logistics solutions and other IoT technologies we offer, visit the Ingram Micro IoT Marketplace or reach out to the IoT experts at us.iot@ingrammicro.com or call (800) 456-8000, ext. 76251.