Geofence route optimization vs Dynamic route optimization

Many logistics companies still use optimization within ​preset
zones (geofence).

This is due to the fact that even before the start of using optimization programs, logisticians always divided the territory into small zones.

Nowadays more and more companies begins to test and use dynamic route optimization instead of using zonal distribution

Both approaches has pros and cons.

Geofence based route optimization

Pros

- The driver knows the territory better

- It is better if the same courier delivers regular deliveries

- You can pay more attention to regular customers

Minuses

- Some drivers in one area are overloaded with orders, while others drive half empty

- The total daily covered distance of all vehicles when optimized by geofence is 5 -10% more

Dynamic route optimization

Pros

- Orders are distributed between vehicles according to the optimal route taking into account vehicle capacity

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

- Less dependence on the driver in case someone leave.

Minuses

- Drivers do not have constant contact with customers

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

With our application, you can use optimization by geofence as well as dynamic route optimization.