DIpil Das
Our Supply Chain Briefing series looks at how technology is transforming the various stages of the retail supply chain. Below, we illustrate the seven major components of the retail supply chain and some of the technologies that can support processes at various stages — from product design to end consumer.
[caption id="attachment_98748" align="aligncenter" width="700"]
Source: Coresight Research[/caption]
What Is Smart Routing in the Supply Chain?
Smart routing, also known as intelligent route planning or route optimization, involves using routing software to optimize and automate routing to the customer’s address.
Routing optimization software uses machine learning algorithms that leverage past delivery data and compare different possible delivery routes to determine the best option. IoT sensors on the fleet tracks vehicle location.
Smart routing can be used in warehousing and delivery:
Routific app Source: Routific [/caption]
Paragon develops, implements and supports routing and scheduling software to support transport operations. It can help brands and retailers cut transport costs, improve resource allocation and better meet customer delivery requirements. Tesco was able to save 150,000 delivery miles each week and experience improved fleet utilization.
[caption id="attachment_98750" align="aligncenter" width="700"]
Paragon routing software
Source: Paragon [/caption] Key Insights Smart routing, using machine learning algorithms to optimize delivery routes, offers many benefits for both retailers and consumers in terms of great speed of delivery, enhanced transparency during tracking and reduced cost.
Source: Coresight Research[/caption]
What Is Smart Routing in the Supply Chain?
Smart routing, also known as intelligent route planning or route optimization, involves using routing software to optimize and automate routing to the customer’s address.
Routing optimization software uses machine learning algorithms that leverage past delivery data and compare different possible delivery routes to determine the best option. IoT sensors on the fleet tracks vehicle location.
Smart routing can be used in warehousing and delivery:
- Warehousing: Route optimization software can set up avoidance zones to, for example, prevent a warehouse forklift from going an area it should not, and help staff become more efficient at picking and sorting orders.
- Delivery: By integrating with maps or location systems, route optimization software can identify the quickest routes, and adjust in real-time as conditions change. Data from delivery vehicles feeds a database that can use past experience to better plan future routes.
- Cost savings and greater efficiency: Warehouses can cut labor costs by ensuring workers navigate the warehouse using the most efficient route, while delivery costs can be cut through reduced mileage (less staff time, less gasoline).
- More precise and accurate estimated arrival times: Smart routing can enable companies to offer more accurate or even real-time tracking updates.
- Better tracking: Companies can send real-time updates on product delivery status.
- Increased safety of delivery drivers: Smart routing can enhance safety and security of drivers and delivery personnel, for example by alerting drivers of potential adverse weather conditions.
- Less impact on the environment: Fewer miles means fewer greenhouse gas emissions.
Routific app Source: Routific [/caption]
Paragon develops, implements and supports routing and scheduling software to support transport operations. It can help brands and retailers cut transport costs, improve resource allocation and better meet customer delivery requirements. Tesco was able to save 150,000 delivery miles each week and experience improved fleet utilization.
[caption id="attachment_98750" align="aligncenter" width="700"] Paragon routing software Source: Paragon [/caption] Key Insights Smart routing, using machine learning algorithms to optimize delivery routes, offers many benefits for both retailers and consumers in terms of great speed of delivery, enhanced transparency during tracking and reduced cost.