The above numbers are far from a plateau. Urban populations are growing. Meanwhile, rising fuel costs and concerns over emissions are prompting people to ditch personal vehicle ownership in favor of mobility as a service (MaaS) offerings. Logistics companies are facing a pressing need to reduce emissions and improve delivery times simultaneously.<\/p>\n
All of the above factors strengthen the need for real-time route optimization solutions powered by big data and machine learning (ML) algorithms.<\/p>\n
But as with every new technology, the natural question is this: Which tangible results can route optimization software deliver for transportation businesses?<\/em> Let\u2019s unpack the answer together.<\/p>\n Route optimization is the process of establishing the optimal route for traveling based on input factors such as best cost or earliest estimated time of arrival (ETA). A route optimization algorithm analyzes different travel paths and automatically generates navigation instructions, updating them in real time.<\/p>\n The goal of routing optimization isn\u2019t to find the shortest or fastest route but to suggest the most efficient based on pre-programmed conditions (such as number of stops, planned delivery windows, or traffic congestion levels).<\/p>\n Popular route optimization use cases include:<\/p>\n In every case, the ultimate goal is to achieve better transport efficiency and harness cost savings \u2014 a pressing priority for most companies. Over 70%<\/a> of UK logistics companies reported transportation cost bumps of 25% or more in Q1 2022. In the US, freight rates increased 28%<\/a>between 2010 and 2022.<\/p>\n Escalated shipping costs can further trigger disruptions across global markets, where consumers\u2019 purchasing power continues to decrease:<\/p>\nWhat is route optimization software?<\/h2>\n
![\"Unravelling](\"https:\/\/d17ocfn2f5o4rl.cloudfront.net\/wp-content\/uploads\/2022\/12\/Body-image-BP-Route-optimization-2.jpg\")
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