Locating your Customers: Understanding the Impact of Location is Critical

While the list of challenges seems never ending, amongst the more contentious and frustrating concerns for Logistics and Operations Managers is the capability to efficiently optimise routes based on real world road network conditions, plan delivery schedules based on optimal sequencing and to accurately locate pickup and drop locations at customer addresses in both urban and rural areas.  In fact the process of associating a geographic location to a customer addresses can prove to be an arduous task and the art of planning routes involves a specific set of skills that can often take years of experience to accumulate.

As a result, many Logistics & Distribution companies have difficulty assessing the efficiency of their distribution networks and the role that geography plays in this.  For example some companies see vehicle tracking systems as the solution to the problem. Indeed vehicle tracking devices are becoming increasing popular and are very useful if the stock to be delivered is of very high value and requires close monitoring.  However, in most cases these devices are essentially being used as a support to job allocation where, ultimately, the decision is left to the experience of the dispatcher. 

A vehicle tracking solution on its own, and not supported by a routing and scheduling solution, is of limited use since it can only inform on the current position of resources. It does very little to prevent inaccuracies, driver error or improve route efficiency. This technology only provides a window on the current situation and does not provide tools to support and improve the planning, routing and scheduling of customer orders.