What it costs if drivers keep driving fixed routes

Written by: Kendra

As the person in charge of the logistics process, you know better than anyone that efficiency is the key to success. Yet it often happens that drivers drive the same routes every day, without being updated to reflect recent changes. Customers join and leave, but fixed, ‘blind’ routes remain unchanged. They may seem reliable and convenient, but can unwittingly cost your organisation more than necessary. In this article, you will discover why fixed routes can cost you money unnecessarily and how you can save on these costs.

The hidden costs of fixed routes

At first glance, fixed routes may seem the most efficient. Drivers know their way around, know exactly where they need to be, and everything seems to run smoothly. But what if the reality is different? Without regular optimisation, routes become based on outdated information. Road closures, diversions and works remain out of sight, causing drivers to make unnecessary detours and lose extra time. This can lead to higher costs and inefficiencies. Here are some examples of the main cost drivers incur when your drivers keep driving fixed routes:

Unnecessary mileage and fuel costs

Fixed routes do not take into account changes such as new customers and changed delivery addresses. This can lead to unnecessary mileage, causing vehicles to travel longer and consume more fuel than necessary. Imagine a driver driving 10 extra kilometres every day due to a non-optimised route. At a fuel consumption of 1 litre per 10 kilometres with a price of €1.75 per litre, this means an extra cost of €455 per working year (standard working year of 260 working days, net of weekends and holidays). And that is only for one vehicle per year. Multiply this by the number of vehicles in your fleet, and you can see how quickly the costs add up.

Lost time and productivity

Every extra kilometre also means extra time on the road - time that drivers could have spent on additional deliveries or efficient handling of their current load. This lost time translates directly to lower productivity. If a driver drives an extra 30 minutes every day, you lose 130 hours of productive time per driver per year. At an average hourly rate of €25 per hour, this costs €3,250 per year per driver.

Increased wear and tear on vehicles

More kilometres also mean faster wear and tear on vehicles. This leads to higher maintenance costs and shorter fleet life. Although often overlooked, these costs can be significant in the long run. For example, if the life of a vehicle is shortened by 10% due to extra mileage and the replacement cost is €50,000 per vehicle, this will cost your organisation an extra €5,000 per vehicle per year.

With just one vehicle, the hidden costs of fixed routes in this example already add up to €8,705. This means that a fleet of four vehicles quickly incurs over €30,000 in unnecessary costs.

Time to let go of fixed routes, but how?

Fixed routes have long been considered the most reliable solution. Drivers know exactly where they stand, and everything follows the familiar rhythm. Yet this raises questions: how reliable is this method really? As calculations show, fixed routes can cost a company a lot. That insight raises new questions. What would more flexible routes look like? What if there were a way to dynamically adjust routes according to customer requests and current traffic information?

More and more companies are realising that fixed routes leave many opportunities untapped. Imagine routes automatically adjusting to changes in orders or traffic situations, without anyone having to manually plan everything again. This is where the power of dynamic route planning becomes clear: more efficiency and more peace on the shop floor. However, this kind of planning cannot be sustained manually; it is simply too complex and time-consuming for that.

Why it's time to let go of fixed routes

As shown in the example, the costs of fixed, non-optimised routes can add up quickly. By investing in route optimisation, you can eliminate these costs while improving your organisation's efficiency and productivity. It is time to let go of fixed routes and embrace the benefits of modern technology.

Do you want to continue to grow and remain competitive in the logistics sector? Then route optimisation is no longer an option, but a necessity. By getting drivers to stop sticking to routes, you pave the way for more efficient and cost-effective operations. The choice is clear: optimise for the future or stick to the past and keep paying the costs.

Why software is essential for dynamic route planning

When it becomes clear that dynamic route planning cannot be achieved manually, the question arises: what solution is there? Technology turns out to be the tool to make this possible. With software that automatically calculates the most efficient route and takes into account factors such as new customers, traffic updates, driver experience and vehicle payload, route planning becomes a smooth process. This saves time and costs, while drivers know exactly what is expected of them.

How route optimisation helps save

Route optimisation is the key to eliminating hidden costs. With advanced software, routes always remain up-to-date and tailored to the latest conditions. As a result, drivers no longer blindly drive fixed routes, but instead drive the most efficient and cost-effective routes.

Reducing fuel costs: By optimising routes, unnecessary kilometres can be eliminated. This leads directly to savings on fuel costs. Optimisation can often save up to 10-20% in fuel costs, which can have a significant impact on your annual budget.
Increased productivity: Optimisation allows planners and drivers to use their time more efficiently. Less time spent creating routes means planners can spend their time on other logistics issues. For drivers, less time on the road means they can make more deliveries in the same time, for example, which increases overall productivity and reduces operational costs.
Lower maintenance costs: Less mileage means less wear and tear, which in the long run means lower maintenance and replacement costs for your fleet.

In a market where customer expectations are ever-increasing, route optimisation plays a crucial role in increasing both efficiency and customer satisfaction. Dynamic route planning with smart software such as RouteLogic ensures that companies automatically drive the most efficient and time-saving routes, reducing costs and making best use of facilities. Want to know how dynamic route planning can help your business save time and costs? Discover the benefits and get started with route optimisation for a more efficient future.