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Tactical routing refers to the mid-term planning process in distribution logistics, where companies develop and optimize delivery routes and schedules on a weekly, monthly, or other periodic basis (e.g. seasonal). Unlike daily route optimization, which focuses on day-to-day adjustments, tactical routing involves creating a more structured and consistent plan that typically outlines the frequency and timing of deliveries, the territories to be visited per driver and, oftentimes, routes to be followed by the drivers on given days that are called ‘master routes’.
Tactical routing helps minimize operational costs by optimizing routes to reduce fuel consumption, vehicle maintenance, and driver overtime. This leads to significant financial savings over time.
By planning the most efficient routes, tactical routing ensures that deliveries are completed in the shortest time possible. This increases the overall throughput and productivity of the transportation fleet.
Tactical routing ensures that every vehicle and driver is used effectively, maximizing the utilization of available resources. This prevents wastage of capacity and helps in managing larger volumes of deliveries without the need for additional resources.
By having a structured plan, companies can ensure reliable and consistent service to their customers, which is crucial for maintaining satisfaction and trust.
Let us show you how our software can help you
Tactical routing is an essential component of a comprehensive logistics strategy, bridging the gap between strategic planning and daily operations. By implementing a route management software, companies can achieve a balance between flexibility and efficiency, ultimately enhancing their overall distribution performance.
Tactical route optimization focuses on decisions that companies can make even before optimizing their daily routes, such as determining fleet size, territories, and delivery frequencies.
These decisions can help save time and money in the day-to-day operation.
Create customized plans for your business. Building on four decades of experience in logistics, ORTEC Tactical Routing helps you answer questions like:
How do I ensure my routes are planned with optimal efficiency?
What are the optimal delivery dates and times for my customers?
How do changes impact my planning, such as rapid growth in delivery frequency or orders?
How can I measure the benefits of potential collaborations with other parties?
These benefits make tactical routing an essential strategy for businesses looking to optimize their logistics and transportation operations, reduce costs, and improve service quality.
Discover how tactical routing transforms logistics and transportation management, optimizing operations and enhancing customer satisfaction.
Reflect and be prepared
Augment planning decisions with optimization and scenario planning.
ORTEC Tactical Routing solves complex problems in less time by comparing various scenarios. The scenario analysis functionality offers a crucial advantage in any key decision-making process. It helps you model and anticipate how changes can impact your key objectives.
Find the perfect balance
ORTEC Tactical Routing helps you balance out customer needs, reliable delivery times, drivers’ workload, required truck capacity, costs, mileages/kilometers and CO2.
Scenario planning gives you control
Analyze scenarios about different delivery models and review how order profiles can improve both customer service and costs. For example, you can analyze the effect of updated order windows and delivery frequency, see the impact of new sales orders, or assess if a complementary package reduces the cost per delivery as a whole.
Intelligent route planning can lead to significant enhancements, particularly if companies don’t deliver their customers daily. This introduces key questions:
How can we define the optimal territories for our delivery areas to maximize efficiency and minimize costs?
What factors should we consider when mapping out territories, such as customer density, geographical barriers, and traffic patterns?
ORTEC Tactical Routing offers effective solutions for optimizing delivery territories to maximize efficiency and minimize costs.ORTEC supports dynamic adjustments based on:
Changes in Customer Demand:
Updates territories to align with current demand.
Service Requirements:
Adapts to changes in delivery windows or service agreements.
Performance Analytics:
Uses data-driven insights to identify areas for improvement.
What is the optimal visit frequency for each customer to ensure satisfaction without overextending resources?
How can we leverage data analytics to determine the most effective visit days that align with customer availability and demand patterns?
ORTEC Tactical Routing effectively determines the optimal visit frequency and schedules visits on the most suitable days by analyzing comprehensive data and customer insights. This approach ensures high levels of customer satisfaction while maintaining efficient use of resources, demonstrating ORTEC’s commitment to delivering tailored, data-driven solutions for complex logistical challenges.
What tools and technologies can be utilized to dynamically update master routes in response to real-time variables such as traffic conditions or last-minute orders?
How can master routes be optimized to reduce drive time and fuel consumption, thereby supporting sustainability goals?
ORTEC Tactical Routing uses advanced algorithms to design master routes that balance the workload evenly across the fleet while ensuring all delivery deadlines are met. The software considers multiple factors including delivery windows, vehicle capacity, driver availability, and geographical constraints. By simulating different routing scenarios, it helps identify the most efficient distribution of routes among the fleet, ensuring a balanced workload and adherence to delivery schedules.
Essential Data
Collect essential data including delivery locations, vehicle capacities, and traffic patterns.
Demand Forecast
Forecast and analyze delivery demands based on historical data.
Territory Creation
Segment the service area into manageable zones for easier routing.
Route Planning
Develop optimal routes within each zone to minimize travel time and costs while meeting delivery windows.
Resource Allocation
Assign vehicles and drivers to ensure balanced workloads and efficient resource use.
Schedule Optimization
Create schedules that evenly distribute deliveries over time to maintain consistent service.
Adaptation and Flexibility
Build flexibility into the plan to handle unexpected changes and disruptions.
Performance Monitoring and Adjustment
Continuously monitor and adjust routes based on performance data and feedback.
Without using logistics route optimization software, a company may encounter several disadvantages: Increased Costs due to non-optimized routes, higher fuel consumption and maintenance expenses, inefficient Resource Utilization and more. Overall, not leveraging tactical routing can significantly impact operational efficiency, cost-effectiveness, and grow in a dynamic market environment.
ORTEC Tactical Routing is an advanced logistics optimization software that focuses on enhancing routing and scheduling efficiency for medium to long-term planning.
ORTEC Tactical Routing helps businesses optimize logistics operations, improve customer satisfaction, and reduce costs through intelligent, data driven solutions.
Business Development Industrie, Retail Distribution BtoB France
Phone: +33 1 79 35 01 49
Mobile: +33 7 88 88 50 03
Mail: aurore.beckerbonelli@ortec.com
Business Development, Retail & Wholesale
Phone: +49 421 960 39 335
Mobile: +49 162 293 8335
Mail: panja.heuermann@ortec.com
What is tactical routing?
Tactical routing optimizes logistics routes and schedules over a medium to long-term period, focusing on efficiency and resource management.
How does tactical routing differ from operational routing?
Tactical routing involves long-term planning and strategy, while operational routing handles daily route adjustments and immediate execution.
What are the benefits of tactical routing?
Benefits include reduced costs, improved resource use, enhanced customer satisfaction, increased adaptability, and support for business growth.
What tools are used in tactical routing?
Tactical routing uses route optimization software, GIS for geographic data, and ERP systems to integrate and streamline planning processes.
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