Back16.12.2020

Geofence route optimization vs Dynamic route optimization

Geofence, territory, dynamic, route optimization

In practice, many logistics companies use route planing within certain districts.

This is due to the fact that even before the using of route optimization programs, logisticians always divided the territory into small zones, for which drivers were assigned.

Both models has both pros and cons. Let’s highlight some most important pros and minuses of both approaches

Geofence based route optimization

Pros

Static zones

The driver knows the territory better and customers demand

Logistic always know who responsible for certain zone

Minuses

Sometimes some drivers in one area are overloaded with orders, while others drive half empty

The total distance of all machines when optimized by geofence is 5-10% more

Dynamic route optimization

Pros

Loads are distributed between vehicles not according to the territory, but according to the optimal route, taking into account the capacity of the car

Distance, load and number of vehicles used are always the most optimal

Less dependence on the driver in case someone cannot take a shift

Minuses

Drivers do not have constant contact with customers

Drivers can get into different territories, which can be difficult for some drivers.

With City Carrier web application, you can use optimization by geofence (polygons) as well as dynamic route optimization.

Using of Polygons feature in the web app, you may set and save any number of territories.

Later, you may use them from the Settings tab to automatically select all stops in this area and optimize route.

To use dynamic route optimization is enough to select Optimize All stops, and system will build most optimal routes based on given constraints.