How to benefit from the flexibility of constraints at pickup and delivery sites to reduce transportation costs?

Vehicle routing optimization software plays a key role in exploiting data related to client points, thereby reducing logistics costs and improving team productivity. This article highlights the constraints related to client points, from the location of pickup and delivery sites to the management of real-time contingencies, to make logistics operations more efficient and sustainable.
 Planning of routing integrated to your TMS

Location of pickup and delivery sites

Each point to be visited must be identified, with potentially several alternative points available for the same pickup or delivery operation.

There are different types of routing: closed-route routing, with similar start and end points, and open-route routing, where the start point can be different from the end point (e.g. warehouse for the delivery area or home for field technician interventions).

Optimization technologies use this information to create maximum synergies, thereby reducing travel distances and, consequently, transportation costs.

Time Windows Access

Managing time windows, frequencies, and delivery schedules is a real logistical challenge.

To create consistent and optimized vehicle routing, optimization tools can take into account multiple time windows (for example, a slot in the morning or afternoon, or all day except on a defined slot).

By providing the software with flexible time slots rather than very strict slots, the optimization solver is capable of optimizing routing with better performance, thus improving operational margins.

The same applies to visit frequencies: if a client needs to be delivered on a certain frequency (for example, weekly) but does not impose a delivery date, the solver can choose the best dates of visit while respecting the frequency for even greater gains. The optimization software can even go as far as determining the ideal frequency (once a week, twice a month, etc.) to cover a demand by mobilizing minimum resources.

Multi-Echelon Management

Multi-echelon management is part of advanced optimization functionalities as it requires synchronizing different levels of the distribution chain and consolidating and massifying flows in intermediate hubs or cross-docking by creating synergies between conveyance routes and delivery routes (see an example case).

Vehicle routing optimization software can enhance your Transportation Management System (TMS) with advanced decision-support features that take into account all your most complex constraints. This complementarity offers not only better visibility across the entire supply chain but also more rational use of resources and data.

Read our articles on constraints related to vehicles and missions for a more complete overview of the issues addressed by these technologies.