How Routing Software for Trucks Can Reduce Fuel Costs and Increase Efficiency

Rising operational costs and increasing demand for fast deliveries have made efficient logistics management more critical than ever. A report shows that fuel costs account for nearly 24% of trucking operational expenses—making it the largest variable cost for fleets. In response, businesses are turning to routing software for trucks to optimize their operations, cut costs, and enhance efficiency.

Powered by advanced algorithms and real-time data, truck routing software revolutionizes logistics by reducing mileage, minimizing idle times, and ensuring on-time deliveries. Let’s explore how delivery truck routing software can help fleet managers address key challenges while achieving substantial cost savings.

Fuel efficiency isn’t just about reducing costs; it’s about maximizing fleet productivity while contributing to environmental sustainability. Inefficient routes, idling, and poor load management can drive up fuel costs and carbon emissions. 

Advanced trucking route software solves these challenges by delivering optimized routes tailored to vehicle and delivery requirements.

1. Optimized Route Planning
   Advanced algorithms analyze factors like delivery locations, traffic conditions, and vehicle constraints to generate the most fuel-efficient routes. By cutting down on unnecessary mileage, truck route software reduces overall fuel consumption.
2. Real-Time Traffic Integration
   Truck routing software integrates real-time traffic data from reliable sources such as GPS providers and mapping services to identify congested areas and roadblocks. By analyzing this data, the software dynamically reroutes vehicles to minimize idle times and fuel wastage. This proactive approach ensures that drivers avoid delays, save time, and meet delivery timelines efficiently.
3. Load Optimization
   Efficient load planning ensures trucks operate at full capacity, reducing the number of trips and improving fuel efficiency. Features like co-mingling loads allow businesses to consolidate shipments heading in the same direction, cutting fuel consumption.
4. Reduced Empty Backhauls
   Empty backhauls waste fuel and resources. Best truck routing software dynamically assigns return loads, ensuring vehicles never return empty.
5. Eco-Friendly Routing
   Many modern routing solutions incorporate green-fleet routing, favoring fuel-efficient paths and integrating EV-specific requirements like charging station locations.

1. Multi-Stop Route Optimization
   For businesses dealing with multiple deliveries or LTL shipments, delivery truck routing software is key to optimizing routes. Multi-stop optimization software ensures that the delivery stops are sequenced in the most efficient order, minimizing travel time, reducing fuel consumption, and ensuring on-time deliveries.
   • For LTL Operations:The software consolidates shipments heading in the same direction into a single truckload, maximizing vehicle capacity and minimizing unnecessary trips.
   • For FTL Operations:Software ensures that truckloads are fully utilized, helping to avoid empty backhauls and reducing the number of trips.
   • Key Benefit:Truck routing solution reduces fuel consumption by consolidating shipments and optimizing multi-stop deliveries, cutting fuel costs by up to 20%.
2. Real-Time Dynamic Routing
   Real-time dynamic routing allows for immediate adjustments to routes as new data (like weather disruptions, traffic, or urgent orders) becomes available. This ensures that truck routing software keeps deliveries on track, even when unexpected challenges arise.
   • For FTL:If a truck faces road congestion or a delivery deadline needs to be adjusted, the software reroutes the truck to ensure timely delivery, avoiding fuel waste in traffic delays.
   • For LTL:Dynamic routing ensures that shipments can be re-prioritized and updated in real-time, reducing idle times and ensuring better customer satisfaction.
   • Key Benefit:Real-time updates ensure that drivers take the most efficient routes, cutting downtime and improving on-time delivery rates.
3. Compliance with Regulations
   Maintaining compliance with industry regulations is crucial for avoiding fines and penalties. Trucking route software ensures that delivery routes are optimized within the bounds of DOT regulations and other legal requirements:
   • Driver Hours Compliance:The software ensures that driver schedules adhere to DoT regulations, incorporating required breaks and rest times.
   • Vehicle Compliance:The system plans routes around height, weight, and road restrictions, preventing trucks from entering areas where they may face fines.
   • Key Benefit:With truck routing software, compliance adherence improves by 25%, reducing fines and improving operational transparency.
4. Driver Productivity Enhancements
   Automating route assignments and providing clear, optimized directions reduce the time drivers spend planning routes, allowing them to focus on making timely deliveries. Route planning enables fleets to:
   • Automate route assignments, reducing the administrative workload for dispatchers.
   • Simplify navigation:Drivers are provided with turn-by-turn directions to ensure the quickest, safest route.
5. Advanced Analytics and Reporting
   Truck routing not only optimizes routes but also provides comprehensive analytics that helps fleet managers track fuel consumption, driver performance, and delivery efficiency. These insights enable businesses to make data-driven decisions and continuously improve their logistics operations.
   • Fuel Tracking:Analytics monitor fuel usage against optimized routes, identifying areas for improvement.
   • Route Performance:Managers can track on-time deliveries, identify bottlenecks, and adjust planning accordingly.
   • Key Benefit:The ability to track key performance metrics allows businesses to continually fine-tune operations, ultimately reducing fuel costs and improving fleet utilization.

1. AI-Powered Algorithms: Ensures precise route optimization tailored to specific vehicle and delivery needs.
2. Multi-Constraint Planning: Accounts for vehicle dimensions, road restrictions, and delivery windows.
3. Real-Time Tracking:: Provides live updates on vehicle locations and delivery progress.
4. Integration Capabilities:: Syncs seamlessly with TMS, ERP, and other fleet management systems.
5. Sustainability Features:: Supports EVs, alternative fuels, and eco-friendly routing practices.

A prominent express delivery service provider in Thailand needed to streamline operations and enhance efficiencies in their first-mile pick-up segment. With a presence in 58 countries, this global 3PL company handles approximately 70,000 pickup points per day (~1 billion shipments), using a mix of owned and outsourced vehicles.

Challenges

1. Lack of load visibility from pick-up stops.
2. Inefficient truck planning and vehicle utilization.
3. Dependence on manual dispatch operations, requiring a large number of planners.
4. Operational constraints limiting scalability.

Solution

1. FarEye Route’s AI/ML-driven optimization offered: Volume Prediction: Predicted cubic meter (CBM) loads using 1.5 years of historical data for better vehicle allocation.
2. Dynamic Routing: Automatically created efficient routes, ensuring minimal distance per stop while maximizing vehicle capacity utilization (97-98%).
3. Automated Task Assignment: Reduced manual intervention by dynamically assigning new pick-up requests to drivers.
4. Low-Code BPM Integration: Enabled quick adoption of new business models in just 1-2 days.

Results

1. 60% reduction in vehicles required for the same workload, saving 170 trips daily (~70,000 trips annually).
2. 70% fewer dispatch planners, cutting labor costs significantly.
3. 40% reduction in drivers, streamlining operations.
4. 66% time saved in the driver dispatching process.