Routing Solutions For Business: Top Route Optimization Software

Any business with vehicles on the road faces the problem of how to find efficient routes so they can avoid wasting time and fuel. Historically, route planning was a manual process involving spreadsheets, maps, trial and error, and a lot of hours. But starting in the mid-2010s, software using route optimization algorithms has been able to deliver routing solutions that are, on average, 20-30% more efficient than anything a human can produce. 

In this article we’ll look at how route optimization software solves the Traveling Salesman Problem, as well as more complex routing problems; what leading software looks like in 2024; and give brief reviews of some options for different business types.   

What is route optimization?

Route optimization is the process of finding the most efficient route around a set of stops. It’s not just about finding the shortest route — the best route is the most cost-effective route. Great routing solutions account for business needs and constraints like:

• Delivery or service time windows
• Vehicle capacities
• Driver schedules
• Stop durations 

The goal is to reduce travel time, fuel consumption, and operational costs while maximizing the number of stops per route (at Routific we call this route density). 

Route optimization is more than just solving the Traveling Salesman Problem

The Traveling Salesman Problem (TSP) is a classic algorithmic challenge that most computer science students will come across. The challenge is to find the shortest possible route around a number of stops, visiting each stop exactly once and then returning to the starting point. It’s easy to describe but difficult to solve, because the number of possible routes grows exponentially as you add stops. 

There are also variations of the TSP with important real-world applications:

• The Vehicle Routing Problem involves finding the most efficient routes for a fleet of multiple vehicles — highly relevant for anyone involved in fleet management.
• The Pickup and Delivery Problem involves some stops where an item or person must be picked up, then dropped off later in the route. This is a common scenario for couriers. 

Abstract academic solutions to these problems are one thing. But in the real world, route optimization must deal with road networks, traffic, bridges, tunnels, toll roads, and all the other constraints (like delivery time windows) that we listed above. 

Modern route optimization algorithms, powered by machine learning and AI, have evolved to address these complexities, and they’ve moved way beyond simple TSP solvers. Today’s dynamic route optimization apps can calculate routes for hundreds and even thousands of stops in minutes.Route optimization algorithms are accessible to businesses of all sizes

Historically, only large enterprises with big IT budgets could afford the advanced systems and computing power needed to tackle routing problems. But in the past 10-15 years, advances in cloud computing have democratized access to massive computing power. That has led to a proliferation of easy-to-use, low cost web apps that make sophisticated routing solutions available to small and medium-sized businesses.

Benefits of route optimization

More efficient routing via route optimization software has both business benefits and environmental benefits:

Financial benefits

• Lower fuel costs
• More deliveries per route, leading to lower cost per delivery
• Less time on the road, leading to lower wage costs
• Lower maintenance costs
• Increased profitability 

Efficiency benefits

• Streamlined route management workflow
• Less time spent planning 
• Routes can easily be changed and edited
• Built-in reporting to track key metrics

Customer benefits

• More accurate ETAs
• Ability to track deliveries in real time
• Increased customer satisfaction

Environmental benefits

• Lower fossil fuel emissions
• Fewer vehicles on the road
• Less traffic congestion

In summary, optimized routes reduce the amount of time spent planning, as well as the amount of time on the road. 

Standard functionality in modern route planning software

Route planning and delivery management software is evolving fast. Some features that were differentiators a couple of years ago are now table stakes, and most route optimization solutions include a variety of management features that help to streamline the day-to-day route planning process:

Add stops via spreadsheet upload or API integration

Modern route planning software allows you to add stops by uploading an Excel or CSV spreadsheet. This feature simplifies data entry and ensures accuracy. 

For businesses who want to import their stops directly from an order management system, APIs integrations enable seamless data transfer.

Time windows

Delivery time windows allow customers to choose delivery times that are convenient for them — or at least to know when to expect their deliveries.  Time windows can be set as short as 15 minutes, or as long as a few hours. 

This feature helps improve customer satisfaction and optimizes driver schedules, ensuring timely deliveries without unnecessary waiting or rush periods.

Mobile apps

Most routing software now comes with Android and iOS apps for drivers. These apps provide drivers with real-time updates, navigation assistance, and the ability to mark deliveries as complete. Mobile apps ensure that drivers have all the information they need at their fingertips, improving efficiency and communication.

Customer notifications

Automated SMS or email messages tell customers when to expect their deliveries. Most routing software now also allows businesses to send real-time tracking links, to meet customer demand for live information. 

Live GPS tracking

This feature allows dispatchers to track drivers in real time, or as each stop is checked off.  This makes it easier to monitor routes and ensure drivers stay on schedule. It also helps to solve issues like traffic delays or unexpected stops.

Proof of delivery (POD)

Most drivers apps now enable drivers to take photographs and/or get signatures as proof of delivery. Some also enable barcode scanning. 

The exact implementation of each of these features varies, and so does the cost. Every business will need to find the balance that suits their needs.

Look for routing solutions that are tailored to your use case

Choosing the right routing solution means finding one that fits your specific needs. Different industries and business models have unique requirements. Here’s a look at some common use cases and what to consider:

Last mile delivery

Last mile delivery businesses need software that can help them maximize customer satisfaction and deliver on time, while keeping their cost per delivery low. The most important features to look for are:

• Easy route management, including the ability to edit routes in real time (dynamic re-routing)
• Accurate ETAs to ensure more on-time deliveries.
• Driver-friendly routes that don’t criss-cross or overlap each other
• Scalability to hundreds or thousands of stops
• Driver tracking
• Customer notifications
• Delivery time windows
• Flexibility to work with different driver schedules
• Ability to specify different vehicle characteristics and properties
• Easy dispatch to driver mobile apps

💡 Routific is built specifically for growing businesses that do last-mile deliveries. We’re noted for our ease of use, superb customer support, and driver-friendly routes. Our algorithm uses AI and machine learning to learn from historical traffic patterns, enabling unusually accurate ETAs.

Other apps that are well suited to last mile delivery include Onfleet, Route4Me, Optimoroute, and Circuit for Teams. Read our detailed review for more information.

Sales calls

Sales teams need routing solutions that help them to spend less time on the road, and more time talking to customers and prospects. Software feature to look for include;

• The ability to route by skills or by territory so that the right salesperson is matched with the right prospect.
• Easily book calls and manage appointments, ideally with integration to a calendar system.
• Support for detailed reporting on call outcomes so sales teams can analyze performance, track progress, and adjust strategies as needed.
• CRM integration that all customer interactions are tracked and managed effectively. 
• A mobile app that shows routes, but also allows reps to view their schedules, access customer information, and input call notes on the go. 

Routing solutions that are tailored for sales organizations include Badger Mapping, Salesforce Maps, SalesRabbit, and Route4Me. 

Field service appointments

For field service teams, success depends on getting the right teams to the job, on time and with the right tools. The goal is to get as many jobs as possible completed with just one visit. Key features to look for:

• Ability to assign jobs based on technician skills and the tools needed for the job. This ensures that the right technician with the right equipment is sent to each service call, increasing the likelihood of first-time fixes.
• CRM or ordering system integrations for easy scheduling and less downtime between jobs​​.
• Mobile apps that provide job details, navigation, and the ability to upload photos or reports for better job management and customer communication​.
• Automated customer updates about their service appointments.

Good routing solutions for field service organizations include Jobber, Housecall Pro, Salesforce Field Service, and Route4Me. 

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