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  • Writer's pictureYara Yasser

How Logistics Companies Can Boost Profitable Shipments

Updated: May 7, 2023



Logistics companies need to work towards reducing the number of empty miles driven due to inefficient planning. According to Eurostat Statistics, in 2020, empty vehicles accounted for roughly 20% of total EU road freight transport performance (measured in vehicle kilometers).



Empty miles are a waste of fuel, truck mileage, time, and costs; thus, carriers and shippers should put in every effort to minimize them to maximize the efficiency of the supply chain. By avoiding the costs associated with empty miles, logistics and transportation businesses can reduce expenses significantly, making their businesses more profitable in the long run. So, how can the "empty mile" challenge be mitigated?  

 

1. Combine or split the load.


Collaborating or consolidating can reduce transportation inefficiencies. By sharing resources, companies can reduce the number of trips required to deliver products and services, resulting in fewer emissions, less traffic congestion, and a more sustainable environment. It is better to outsource a load than bring your company's network out of balance.



2. Look for ways to generate funds.


Your logistics company may be missing out on profit opportunities because of a singular focus. Collaborating with other firms can aid in the search for such opportunities.



3. Optimization of trucks' driving routes


Optimizing truck driving routes is an important way to save on operation costs and increase efficiency in the transport industry. To accomplish this, route optimization software can be used to help truck drivers save on time and fuel costs.


In view of the growth in driving and the evolution of logistics performance, an increasing number of logistics firms in Europe are exploring the possible advantages of making route optimization more dynamic. This means the delivery experience will be more satisfactory for logistics operators thanks to this increased mobility.



Dynamic route planning in the logistics and transportation industry



Using logistics operation and order mixture data, a computer algorithm will dynamically plan the order of stops along a delivery route. With dynamic route planning, a new route will be generated based on the specific operators and shipments that are present at the time of delivery. With this approach, each delivery can be planned on an individual basis, ensuring the most efficient and cost-effective route possible.



Dynamic route planning benefits:

  • savings on fuel and time

  • Reduce the amount of paperwork and manual input needed for route optimization.

  • fewer unexpected delays due to changing order volumes or scheduling conflicts,

  • efficiency in delivery management


The most efficient strategy to increase logistics operations is to utilize route optimization software to streamline the delivery process. This might help with better managing the finances and cutting down costs associated with logistics operations. As well as helping identify the most efficient route between multiple locations, it also makes it easier to track the progress of shipments.



Conclusion


Norma LIVE helps the logistics industry create efficient transportation plans within minutes to minimize logistics costs and maximize fleet productivity with a real-time, dynamic live routing algorithm that enables you to put your entire express transport planning operation on auto-pilot. It optimizes pickup and delivery operations for the last mile and significantly empowers same-day or immediate delivery services.



Download the white paper "Do’s and Don’ts When Choosing a Logistics Partner" and find out some tips for choosing a logistics partner to save time and manage your operations as you focus on growing other sectors of your business.


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