Figuring out how to deliver a mountain of parcels and packages to addresses all over a city in the most cost-effective manner possible is one of the most challenging conundrums a fleet manager is ever likely to face.
The variables that have to be taken into consideration appear to be endless.
Some businesses will not accept deliveries of goods before or after certain times of the day.
Some streets are one-way, others have waiting, weight, height and width restrictions, and many of them do not have loading and unloading bays.
To all that can be added the effects of the rush hour at the start and finish of the working day.
The advent of Low and Ultra Low Emission Zones and (in the case of Oxford city centre) a Zero Emission Zone imposes a further headache.
Routing and scheduling issues also extend beyond urban areas and, in years past, the way of solving this riddle involved a paper-based system underpinned by street maps, A-to-Zs, and the in-depth local knowledge of a team of planners.
In more recent times fleets have resorted to using routing and scheduling software packages to address the issue.
However, they have yet to be adopted by everybody, says Jane Geary, marketing director at routing, scheduling and proof-of-delivery systems specialist PODFather.
“The other day we saw one company that operates 85 vehicles still relying on paper,” she adds. “The extent to which so many businesses continue to depend on this approach never ceases to amaze me.”
Long a major player in the routing and scheduling sector, Paragon Software Systems was acquired by US software giant Aptean around three years ago.
James Head, lead solutions consultant, agrees the need for modernisation still hasn't been taken on board by everyone.
“We still see people using bits of string and pins on maps,” he says.
It is particularly surprising, says Geary, given the ability of the algorithms contained by routing and planning systems to optimise the delivery process and reduce overheads.
25% cut in running costs
“They can cut running costs by 20% to 25% - maybe even more - compared with a paper-based approach,” she says.
By running costs she means everything from fuel bills and overtime payments to drivers to spot-hiring vans unnecessarily.
They can also reduce the number of miles vehicles have to travel to complete their deliveries.
Head estimates the overall saving can be anywhere from 10% to 30% if factors such as the reduction in the amount of time employees have to spend on planning are taken into account.
Remember, too, that the knowledge planners have is not always immediately to hand because they sometimes go on holiday or fall ill, he points out. Software does neither of these things.
Over the years military commanders have often observed that even the best-laid plans can fall apart the minute an army encounters the enemy.
Potentially this is true of routing and scheduling no matter whether it uses sophisticated software or pencils and paper.
The whole pre-planned scheme can degenerate into chaos if environmental protesters take it into their heads to glue themselves to the highway at a vitally-important junction in the middle of town, for example.
"Nine times out of ten though your routes will run as you planned them, and if you have a plan then you can adjust it," Geary argues.
The occasional need for rapid adjustment means the role of the professional planner who can think on his or her feet and intervene as and when appropriate has not as yet been rendered completely useless.
Head suggests the software will allow a business to achieve 90% to 95% of the planning it needs to do, but human intervention may be necessary to deal with the rest.
That said, the growing use of AI - Artificial Intelligence - means that planning software is developing the ability to learn and adjust itself automatically as events unfold.
So says Andrew Tavener, head of fleet marketing, Europe, Middle East and Africa at Descartes.
It is another key player in the sector, with clients that include Halfords and roofing and insulation distributor SIG.
"It's a development that still has some way to go and I don't think you will ever get rid of the human element entirely," he says.
"What you can already do however is reduce the number of people who need to be involved in planning."
The use of AI and machine learning can bring double-digit benefits to standard optimisation algorthims, says Colin Ferguson, CEO of Optimize - profiled in a Fleet News interview here.
“People in the transport sector are recognising you can actually use optimisation algorithms to do other things with, not just routes,” he adds.
“The actual outcome may be a route, but if you come at it from a different approach, there are multiple benefits.”
For example, by combining multiple datasets, Optimize’s algorithms can work out what the best route is at certain times of day to avoid accident blackspots, therefore reducing risk.
Data from telematics and cameras can be used to understand the behaviour and profile of a driver, and can help allocate the right routes to the right drivers: if a driver is better, on average, in rural driving then urban driving, or vice versa, then the optimisation software can allocate jobs that match their skillset the best.
The algorithms can also help a fleet decision-maker integrate electric vehicles into their operations seamlessly, as well as get the most out of that vehicle, says Ferguson.
“When an organisation is looking at planning routes, if all its vehicles are the same type then that is relatively straightforward, albeit we have a solution to automate the process,” he adds.
“But if you’ve got 100 vehicles and maybe 20 of them are electric, then the questions are different. What jobs do you give them? What routes do you put them on?
“Traditionally, human beings will put them on tentative neighbourhood routes as they don’t want them to run out of range, so they won’t really sweat the asset to get the maximum return on investment.
“The proper way is to look holistically at the whole fleet and decide where those vehicles fit in within the context of the jobs that need to be done that day.
“How do they interact with infrastructure? How do they reduce the payload to get some weight off the vehicle early to maximise the range?
“You might plan an EV on a flatter route until its carrying a reduced weight because if you go up a hill with a heavy payload you will degrade the range. So even if the shortest route is over the hill, that may not do you any favours when you’re trying to maximise what that vehicle can do.
“That’s not a problem human beings can plan for easily. That’s when you need algorithms to look at the look at the whole picture including infrastructure, weight-to-discharge ratio and other vehicles in the mix.
“And then you try to make sure you can sweat the assets of the ones that cost the least and at the moment EVs cost less on a kWh versus petrol or diesel vehicles.
“So therefore, you want to be using those vehicles more rather than using them less. That’s another reason the optimisation helps.”
Taking a holistic view
Geary makes the point that routing and scheduling systems cannot be viewed in isolation.
Users want to be able to track vehicles and loads and see how far they are from their destinations so that customers can be made aware of what is happening and obtain proof of delivery.
PODFather, among others, can provide them with a live tracking link if they want one.
The ability to notify people if their goods are likely to be late is vitally important, adds Tavener.
They will forgive you if it is the consequence of the actions of climate extremists or a major road traffic accident, he says.
What they will not forgive is a failure to alert them so they know what is happening.
The need for a package to cover as many bases as possible is illustrated by Dorset-based haulier Wyvern Cargo's use of Mandata's transport management system to help it run its fleet of more than 75 vehicles.
Depending on the operator's requirements, Mandata can cover everything from dynamic map-based planning to empty-mileage calculations that are updated as loads are added and amended.
"We originally chose it because we wanted the operational benefit and flexibility of live load planning," says Simon Sparrowhawk, operations director at Wyvern Cargo.
“Our previous system was effectively an invoice filing cabinet on a computer whereas what Mandata has to offer provides all-round versatility."
Stand-out features from his viewpoint are the integrated driver Manifests App with live job updates and the EPOD (Electronic Proof of Delivery) tool.
"The date and time of delivery are automatically time-stamped so they only need to get a name and a signature," he says.
A major influence on routing and scheduling deliveries is the number of vehicles a fleet has to hand.
To that can be added their carrying capacity, how many drivers are available and - if they are driving trucks - how many hours they have left before they have to take a mandatory rest.
If you know all that plus the number of orders that are coming and where they have got to be delivered to, then you may be able to influence consumer behaviour, says Tavener.
Efficient use of resources
"Let's suppose you have a customer who wants an item delivered next day plus another one just across the street who is happy to take delivery of a couple of items three days later," he says.
You can offer the former an incentive to accept his item three days' later too which means you will only need to make one delivery run to that location.
That means you are using your resources more efficiently, thereby making a saving.
You are burning less fuel and emitting less CO2, so you can promote the incentive as the green delivery option. That is something that appeals to a growing number of consumers, says Tavener.
Routing and scheduling is increasingly cloud-based; Descartes is among those businesses that have adopted this approach. "At PODFather we use a cloud-based back-office system plus an app that drivers can use on an Android or iOS smartphone,” adds Gearey.
A smartphone app gives fleets something else they may view as being an essential part of the programme.
That is the ability for drivers to carry out daily walk-around inspections of their vehicles prior to leaving the depot, and report any defects they spot so that prompt action can be taken; a facility PODFather and others offer.
If the defect is serious enough, then the van or truck may have to be taken out of service, and the load transhipped to another wagon.
Delivery times may be affected as a result, but that is far preferable to allowing a potentially-unsafe vehicle to go out on to the highway.
There is always the danger that the driver will stay in the cab if the weather is cold and rainy and enter data without bothering to carry out a physical check.
QR codes
Head knows of one operator who puts QR codes around the vehicle - near the wheels, for example - that the driver has to scan for the walk-around check to be valid.
With more 400 vehicles and more than 200 hubs and branches, electrical parts distributor and PODFather client Rexel ensures its drivers use hand-held devices on which they capture their vehicle check information and receive their list of jobs for the day.
"A big benefit of PODFather has been the reduction in the number of customer queries our branches have to deal with," says Andy Hinks logistics process manager at Rexel.
“Our customers now know what it is going to be delivered and when, and they get a copy of the electronic proof of delivery to prove it."
As well as helping to manage deliveries on a day-to-day basis, a routing and scheduling packet can be used as a strategic planning tool, says Head.
It can help a fleet determine where its depots should be and how many vans and trucks it should be running. It may increasingly be asked to provide advice on how many of those vehicles should be electric, and which routes they should be deployed on given limitations such as range and charging times.
So how much is a routing and scheduling bundle that includes tracking, proof-of-delivery, and the ability to carry out vehicle checks likely to cost?
Suppliers are cagey about quoting prices on the record, pointing out that much depends on the size of the fleet and any add-ons that may be requested. Observed one industry executive: "Typically you're talking roughly £50 per vehicle per month."
Tavener puts it another way. "You should see a payback within 18 months," he contends.
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