5 Elements of Efficient Delivery Planning

Looking for ways to streamline your delivery process? If you're struggling with inefficient routes, over-complicated delivery schedules, or frustrated customers, you're not alone. 

Effective delivery planning can reduce operating costs by up to 40%, while improving customer satisfaction. 

There are five main elements of delivery planning:

1. Order scheduling
2. Route planning and route optimization
3. Dispatch and driver scheduling
4. Real-time tracking
5. Customer communication

In this guide we’ll offer a practical guide to optimizing all these aspects of a last-mile delivery operation. We’ll also review the best tools and software, look at the business impact of more efficient delivery planning, suggest KPIs, and address common challenges. 

💡 Want to jump straight into testing a great delivery planning tool to see what it can do? Try a free 7-day trial of Routific.

The 5 essential components of effective delivery planning

1. Order scheduling

Successful delivery operations start long before drivers ever hit the road, with order processing. Make sure that your order management process covers all these points:

a. Collect accurate order information

Get all the relevant details when your customer places their order:

• Delivery address — including special instructions like access codes or parking instructions 
• Contact information
• Delivery windows

A good order management system should automate all of this for you. 

💡 Time-saving tip: Export your orders in CSV format for easy import into route planning software (or use an API). Most e-commerce platforms and ordering systems support this feature.

b. Sort and batch orders

If you don’t have delivery management software to automate this process, group your orders into batches to make delivery planning easier. Some common ways to group orders include:

• By geographic zones (town, region, zip code, etc). Batching all the orders for one delivery zone into the same day maximises the number of deliveries per route.
• By delivery time windows:  If timely deliveries are a priority, set target time windows for each order and group your orders accordingly.
• By size and/or weight: This helps match loads to vehicle capacity.

By batching orders, small businesses can often handle around 20-50 orders manually. Once you exceed that number, automation becomes essential. 

c. Integrate with inventory systems 

Connect your ordering system with inventory management to:

• Avoid stockouts. 
• Track product availability in real time.
• Trigger reordering when inventory runs low.

💡 Pro tip: Even small operations can benefit from creating a standardized checklist for order preparation. This reduces errors and speeds up the packing process, especially when you have multiple people handling orders.

2. Route planning and optimization

The heart of delivery planning is creating efficient routes that minimize time, fuel, and driver fatigue while ensuring a good customer experience. 

The easiest way to get the best routes is route optimization software, which uses algorithms to solve complex routing problems quickly. A tool like Routific can:

• Automatically calculate optimal routes.
• Factor in real-world constraints like delivery time windows, vehicle capacity, and driver schedules.
• Account for typical traffic conditions and predict accurate ETAs.
• Balance workloads across multiple vehicles and drivers.

It is just about possible to do delivery route planning using nothing but spreadsheets and Google Maps. But unless you’re really small and just starting out, we don’t recommend it. It’s limited, time-consuming, and inefficient. A proper route planner, with the functionality to improve your operational efficiency across the whole delivery process, will save time and money from the moment you start using it. 

“We spent about an hour rewriting our routes every time we added a new pick-up point to our network. Routific's AI solution is smart and fast. We quickly understood this was the best way.” — Thibaut Martelain, Marche Second Life Founder & CEO

3. Dispatch and driver management

Having planned the most efficient routes, you need to get them to your drivers and then manage the delivery process through the day. Effective dispatch systems help you:

• Assign routes to drivers based on availability, vehicle type, and familiarity with an area.
• Communicate delivery details clearly and efficiently.
• Track delivery progress throughout the day.
• Respond to exceptions like traffic, vehicle breakdowns, or customer changes.

a. Route assignment and communication

The new generation of route optimization and delivery management software comes with free driver mobile apps that allow you to:

• Send routes directly to drivers' mobile devices.
• Include all delivery details (addresses, contact info, delivery notes).
• Provide turn-by-turn navigation using the driver’s choice of app (Google Maps, Waze, Apple Maps and more). 
• Update routes in real time when changes occur.

💡 Pro tip: Have backup delivery drivers on call for high-volume days or unexpected driver absences. Cross-train office staff on dispatch procedures to handle emergencies.

b. Managing exceptions and changes

No delivery day goes exactly as planned. New orders come in, customers aren’t there to grant access to the property, or a traffic incident means your delivery driver needs to choose a different route. Good dispatch systems help you:

• Redirect drivers when traffic or road closures occur.
• Add last-minute orders to existing delivery routes.
• Handle customer reschedules or cancellations.
• Manage returns or failed deliveries.

💡 Time-saving tip: Create standard procedures for common exceptions. For example, document exactly what drivers should do with packages when customers aren't home. Apps like Routific often include options to re-attempt a delivery later in the day, before marking it as missed.

c. Driver performance management

Look for tools that help to monitor driver performance, as well as allocating routes fairly so that shift lengths and loads are balanced.

Typical metrics and KPIs include:

• On-time delivery rates.
• Driver productivity, typically measured in stops per hour and average service times.
• Driver turnover rates. There’s a shortage of experienced delivery drivers, so delivery services that prioritize driver retention can often be more efficient.

Effective driver management makes it easier to weather the challenges of growing a business.

When we started our home deliveries in 2016, we had just one driver going to a dozen or so stops a day. Now, with the help of Routific, we have a fleet of vans delivering to hundreds of locations every week." — Chase Winters, Greenhouse Juice Chief Performance Officer

4. Real-time tracking and adjustments

Once delivery vehicles are on the road, tracking their progress through the day helps dispatchers stay on top of things and respond to changes. 

Driver mobile apps can make these workflows easy: Dispatchers get the information they need, without drivers having to take time out to call in or send progress reports.

Look for delivery planning tools that offer:

• Live driver tracking.
• Progress indicators that show completed and remaining stops at a glance.
• A combination of map and timeline views to give dispatchers the fullest perspective.
• Estimated arrival times that update based on real conditions.

Routific's timeline view, for example, gives dispatchers an at-a-glance understanding of how the day's deliveries are progressing, making it easy to spot which drivers are ahead of schedule and which might need assistance.

Handling delays and disruptions

When issues arise, you want a flexible response. Depending on how your delivery operations are set up, you may need:

• Drivers to be able to reschedule and reattempt stops as needed.
• Dispatchers may also need to be able to reassign stops or entire routes to a different route or driver.
• Dispatchers to reschedule stops and adjust future deliveries based on current conditions. 

Whatever happens, you need real-time updates so drivers, dispatchers, and customers all have accurate information at their fingertips. 

"Having visibility into our entire delivery operation has transformed how we manage our business. We can spot problems before they affect customers and make adjustments on the fly." — Janna Bishop, Flourist co-founder and CEO

5. Customer communication

Managing and meeting customer expectations is crucial for delivery success. Automating routine delivery notifications can make this a lot easier. Look for delivery planning tools that offer: 

• Advance notice of when a delivery has been scheduled.
• An alert when their order is out for delivery is on the road, with an accurate ETA.
• Updates as things change.
• Confirmation that the delivery has been completed, with proof of delivery.

Proactive communication using email, SMS notifications, or live tracking links,  is a cost-effective way to build trust and reduce support calls.

💡 Pro tip: Use your notifications to let customers know what they need to do to ensure a successful delivery. For example if you’re delivering age-restricted products you can remind customers to have ID ready.

“Our customers love getting a notification when their delivery is about to arrive. It's reduced missed deliveries by 35% and dramatically improved satisfaction scores.” — Janna Bishop, Flourist co-founder and CEO

How efficient delivery planning can boost your business

Delivery planning can help couriers, local delivery companies, and others involved in the last mile of the supply chain to improve operational efficiency and profitability in several ways. 

• Lower fuel costs: More efficient delivery routes are shorter, meaning less time on the road and lower fuel consumption. From a fleet management point of view, it can also reduce vehicle maintenance costs. 
• Time savings: Less time spent on route planning and customer “where is my order?” calls means more time to spend on training, new product development, or improved services.  
• Higher customer satisfaction and retention: Transparent, timely notifications go a long way to making customers feel they’re in good hands.
• Increased driver retention: Fair route allocation, accurate schedules, routes that make sense — all help drivers work more efficiently and feel valued. 

💡Delivery planning can be easy. Try a 7-day free trial of Routific to see for yourself.