What is DRO and Why is it Important?
By Bill Rohr
Uploaded: May 18, 2023
Dynamic Route Optimization (DRO) is a powerful tool that can significantly improve the efficiency, profitability, and safety of your pickup and delivery (P&D) operations. In this blog, we will discuss the importance of our Impact DRO service and how it can help you streamline your P&D operations and reduce costs.
First thing first, let’s define what DRO is. DRO is a real-time optimization algorithm that helps you determine the most efficient routes for your delivery vehicles based on a variety of factors such as traffic, distance, and delivery time windows. Efficient, optimized routes ensure that your drivers are always taking the quickest and most cost-effective routes to their destinations.
So, why is DRO so important for pickup and delivery operations? Well, there are several key benefits to using DRO.
Increased efficiency is the cornerstone of our DRO program. How? By optimizing your routes, which reduces the amount of time and fuel your vehicles spend on the road. This not only saves you money but also helps you complete deliveries faster and safer, and save on fuel costs and your fleets’ time on the road.
We all want and need to save costs. So, by reducing the time and fuel needed to complete deliveries, DRO can significantly lower your operating costs. And in some cases, DRO can help you avoid traffic and road congestion, further reducing your costs and increasing efficiency.
Increased efficiency goes hand-in-hand with creating great customer service. With DRO, you can meet your time windows for pick-up and delivery. This can help you build stronger relationships with your bulk and large package customers.
DRO provides you with greater visibility of your route trends and data reporting, so you can monitor the progress of your route efficiencies and quickly respond to any issues. This improved visibility can also help you identify areas for improvement, such as unnecessary stop overrides, and optimize your operations even further.
So, how does the Impact DRO service work in practice? Let’s explore the DRO process as it typically involves the following steps.
Data collection is one of our first steps. This involves collecting data on your pickups and deliveries, including pickup and delivery locations, delivery time windows, and how balanced the delivery vehicle capacities are.
Next is to optimize your routes. The DRO algorithm uses this data to determine the most efficient routes for your vehicles. This includes considering factors such as traffic, distance, and delivery time windows.
Optimization is not a one-and-done exercise. Routes need to be regularly monitored, re-calculating and adjusting routes as warranted, thus ensuring your drivers are always taking the quickest and most cost-effective routes to their destinations.
Data Insights gives you information on the health and efficiency of your CSA. These insights through daily, and very importantly, weekly data reports, help you monitor the efficiency of your deliveries and quickly respond to any inefficiencies.
So, now you know why a well-designed and implemented Dynamic Route Optimization (DRO) is an essential tool, if not the essential tool, for any pickup and delivery operation looking to improve efficiency, reduce costs, data insights per informational reports, increase driver satisfaction, and provide better customer service. Additionally, with regular monitoring, re-calculating, and adjusting routes, DRO ensures that your drivers are always taking the quickest and most cost-effective routes to their destinations.
If you’re looking to streamline your P&D operations and increase profitability, our DRO program is definitely worth considering. Click here to learn more!
Check back in frequently to read more posts on the Impact DRO Service features and the other services Kelly Anderson Group has to offer the transportation industry.