They’ve been around for decades. I bet you use them for managing all sorts of functions within your business.
Spreadsheets
Globally, Microsoft Excel is estimated to be used by between 1.1 and 1.5 billion people (admittedly as part of the Office package). Which makes it one of the most widely used software applications.
But that doesn’t mean they are the best choice for managing your delivery route planning, especially when we think about:
- Studies have shown that spreadsheets contain error counts of between 1% and 5%
- Spreadsheets take a significant amount of time to manage and maintain
- Version control and a ‘single source of the truth’ is almost impossible, leading to confusion and mistakes
- Collaboration and sharing data amongst teams is a challenge. This is often due to a lack of real-time updates and, going back to the previous point, multiple users creating conflicting versions
- Dependency on spreadsheets for operational management means businesses are often much slower to adapt to changes in the market.
When we consider the fast-paced world of logistics, it is clear that spreadsheets are not enough. Most consumers value fast and reliable delivery when choosing a logistics provider.
While spreadsheets are useful for many tasks, businesses are now using specialised route planning software tools, often through a Transport Management System, to overcome these limitations.
Let’s delve a little deeper into some of the reasons why you should reconsider using spreadsheets for planning delivery routes.
And, perhaps more importantly, explore more efficient alternatives.
Lack of real-time updates
Spreadsheets are, by their very nature, static.
Once data is entered, it remains unchanged unless manually updated.
As anybody who works in logistics knows… the one thing we can predict is that any given day is going to be unpredictable!
As soon as a vehicle leaves your warehouse or depot, events can change from minute to minute.
And, if your main logistics planning tool is static, that becomes a significant limitation.
Not having the ability to dynamically make changes or see your logistics operation in real-time can lead to outdated information being used for critical decision-making.
Crucially, this can potentially cause inefficiencies and delays on deliveries for your customers.
The importance of real-time data
Imagine your fleet is out on runs delivering (and collecting) goods and products and there’s a major road closure due to an accident.
Not an unusual occurrence.
Your spreadsheet isn’t going to update with new ETAs without human intervention. Someone is going to have to open the file and manually update the route and any associated ETAs and then communicate those changes to your drivers – and most crucially, your customers.
This manual process is not only cumbersome but also prone to errors, as it relies heavily on human intervention and accurate communication.
In contrast, Stream automatically updates routes and ETAs in real-time.
If there’s a road closure or unexpected traffic, Stream can flag issues and help you communicate changes to drivers’ and customers. If routes and jobs need to be changed, they can also be completed quickly and communicated to all.
This efficiency leads to fewer delays, reduced fuel consumption, and happier customers.
Moreover, real-time data ensures that your logistics team can respond proactively to changes, maintaining high service levels and operational efficiency.
We’ve written about ‘managing by exception’ a number of times before, including within this article about the benefits of managing wholesale and distribution operations in-house in conjunction with Brightpearl and children’s furniture wholesaler, Scandinavian House.
Enhancing customer experience
Customers today expect deliveries in super fast time, and real-time updates are crucial to meeting these expectations.
Stream’s route planning software can provide customers with accurate delivery windows and notify them of any changes instantly.
This proactive communication not only enhances the overall delivery experience but also builds trust with your customers. Keeping customers informed helps manage expectations and reduces the likelihood of damaging your brand due to delays.
Furthermore, the ability to provide real-time updates can be a competitive advantage.
Companies that can consistently meet delivery promises are more likely to retain customers and attract new business. By integrating real-time updates into your logistics operations, you can differentiate your service offering and strengthen customer loyalty.
This article examines how some businesses have embraced the delivery experience to build brand equity.
Inefficiencies and human error
Relying on spreadsheets for route planning is akin to setting a trap for human error.
Typos, incorrect formulas, and outdated data can all lead to inefficient delivery routes, wasted resources, and increased operational costs.
Going back to Brightpearl, they released a study last year where they found that retailers were spending 300 hours a year fighting work admin, including maintaining and managing spreadsheets.
Human error is inevitable, and the more complex the spreadsheet, the higher the likelihood of mistakes.
Complexity and scalability issues
As your business grows, so does the size and complexity of your logistics operation and delivery routes.
Managing these complexities with a spreadsheet becomes increasingly challenging.
Plotting multiple stops on different routes by hand takes a lot of time. It also makes it hard to grow your operations efficiently.
The absence of automation in spreadsheets means that any changes or improvements need a lot of manual work. This can slow down your operations as they grow.
Route planning software, on the other hand, is designed to handle those complexities.
Stream can optimise delivery routes for multiple vehicles and delivery points, taking into account variables like traffic conditions, delivery windows, required times and vehicle capacity amongst many other factors.
This ensures that each route is as efficient as possible, saving time and reducing fuel costs.
Additionally, the scalability of route planning software means that it can grow with your business, seamlessly accommodating increased demand and complexity.
Reducing carbon footprint
Inefficient routes lead to longer driving times and higher fuel consumption, contributing to increased carbon emissions.
By optimising routes, you can significantly lower your fleet’s environmental impact and work towards Net Zero targets.
This not only aligns with sustainability goals but also reduces costs associated with fuel and vehicle maintenance.
As consumers and businesses alike become more environmentally conscious, demonstrating a commitment to sustainability can enhance your brand reputation.
Moreover, optimising delivery routes to reduce emissions is not just good for the environment; it’s also cost-effective.
Lower fuel consumption translates into reduced operational costs, freeing up resources that can be invested in other areas of your business.
By adopting route planning software, you can achieve a balance between economic efficiency and environmental responsibility.
Limited analytical capabilities
Spreadsheets are great for crunching numbers, but they fall short when it comes to analysing complex logistics data.
Stream provides advanced analytical tools that can offer valuable insights and monitor the performance of your logistics operations.
These insights are crucial for making informed decisions and improving overall logistics performance.
Data-driven decision making
With Stream, you can make detailed reports, dashboards, KPIs, and analytics. These tools help you see patterns and trends in your logistics operations.
This data can inform decisions about resource allocation, route optimisation, depot locations and customer service strategies for instance.
By using analytics, you can identify inefficiencies, forecast demand, and tailor your operations to meet changing needs.
For example, you can identify which routes consistently face delays and adjust your planning accordingly.
You can also analyse delivery performance metrics to identify areas for improvement and ensure that your operations are running as efficiently as possible.
Advanced analytics give you a strategic edge. They help you make data-driven decisions that boost your logistics strategy and improve performance.
Improving delivery success rates
Understanding and analysing data is key to improving delivery success rates. With insights from route planning software, you can make informed decisions that enhance your overall logistics strategy.
This leads to more successful deliveries, fewer missed deadlines, and improved customer satisfaction. By continually analysing performance data, you can refine your processes and adapt to evolving market demands.
Furthermore, improved delivery success rates contribute to customer retention and business growth. Some Stream subscribers have used analytics to show they are meeting agreed KPIs with current business partners, like OTIF. This has also helped them win new business.
Customers who consistently receive their deliveries on time are more likely to become repeat customers and recommend your services to others.
By investing in route planning software, you can drive operational improvements that directly impact your bottom line and customer relationships.
Making the shift to route planning software
The benefits of transitioning from spreadsheets to dedicated delivery route planning software are clear.
From real-time updates to enhanced analytical capabilities, route planning software offers the tools you need to optimise your logistics operations effectively.
The transition may require an initial investment of time and resources, but the long-term gains in efficiency and customer satisfaction make it worthwhile.
Choosing the right software
When selecting route planning software, consider factors such as ease of use, scalability, and integration with existing systems.
Look for a solution that offers real-time updates, advanced analytics, and the ability to handle complex logistics scenarios. It’s important to choose software that aligns with your specific business needs and can adapt to future growth.
Additionally, consider the level of support and training provided by the software vendor.
A robust support system can help ensure a smooth transition and ongoing success with the new software.
By choosing the right solution, you can maximise the benefits of route planning software and set your logistics operations up for long-term success.
Implementation and Training
Transitioning to new software can seem daunting, but with the right approach, it can be a smooth process. Make sure your team gets the right training and support when you start using the new system. This will help you get the most out of it.
Comprehensive training ensures that all team members are comfortable with the software, minimising disruptions during the transition.
Furthermore, ongoing support and updates from the software provider can help you continue to optimize your logistics operations.
As your business evolves, staying updated with the latest features and improvements can enhance your ability to meet customer demands and maintain a competitive edge.
In our case, Stream offers a number of different pricing plans to support your logistics operation as it grows.
Conclusion
Spreadsheets may have been the go-to tool for route planning in the past. But, they simply can’t compete with the capabilities of modern delivery route planning software.
By embracing technology-driven solutions, you can enhance efficiency, reduce your environmental impact, and provide a superior delivery experience for your customers.
Investing in the right tools today will set your logistics operations up for success in the future.
As the logistics landscape evolves, using advanced technology will be key to maintaining a competitive advantage and achieving long-term growth.
