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How Route Optimization Benefits the Pharmaceutical Industry?

How Route Optimization Benefits the Pharmaceutical Industry?
Archives, Education, Global Logistics, Global Trade Daily

How Route Optimization Benefits the Pharmaceutical Industry?

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The timely transportation of lifesaving drugs is detrimental to the pharmaceutical industry’s success. Pharma companies work on clinical trials and advanced research that requires drug delivery and storage options. Even the slightest mistake during the logistics process may seriously delay the delivery and impact both Pharma companies and their customers. On top of that, pharmaceutical companies are currently struggling with the logistics process. As the most crucial element, Last-mile delivery services are impacted due to a multitude of factors. It seems that the most efficient solution to this problem is route optimization. Here is how route optimization benefits the pharmaceutical industry and potentially may solve all major issues.

Last-mile delivery services complexities and problems

There is an array of global logistics issues for the Pharma industry. The most common ones include the following:

  • supplying cold-chain Pharma products;
  • non-refrigerated supplies;
  • safety guidelines for geographically varying distribution;
  • truck capacity limitations;
  • the global shortage of drivers;
  • increased needs for special storage requirements;
  • complex emergency security measures;
  • the change in temperature;
  • no visibility over the logistics processes;
  • difficulties regarding sudden On-Demand deliveries;
  • unpredictable traffic jams;

These are just some of the issues that happen during the last mile delivery services. With that in mind, here is how route optimization may contribute to Pharma companies and solve these issues on a global scale.

Plan flexible delivery schedules

When delivering drugs to Pharma companies and various establishments, one of the most valued resources is time. Shipment must be delivered without delays because that creates a lack of trust. Any issues with the delivery usually happen because there is no flexibility in planning the traditional routes.

Some Pharma companies, like nursing homes, require emergency deliveries, which is where flexible route planning comes into place. It is essential to prioritize and always deliver shipments with higher priority first.

Deliveries of pharma shipments involve many costs due to various shipment needs. As mentioned, some shipments require refrigerated trucks, special storage units, temperature control, and increased driver awareness. On top of that, commercial warehousing costs also come into place. Failure to accommodate these conditions might lead to discarding medical supplies worth a lot of money.

End-to-end technology plays an essential role here because it allows full visibility of the route planning process. That is the best approach to avoid these problematic situations due to non-flexible route planning. With the right technology system in place, you will have real-time status on all vehicles, allowing more control over fleet management and operations.

Route optimization reduces wasteful transportation costs

Over 80% of different types of drugs and 90% of vaccines require temperature-controlled storage during the delivery process. Many costs are involved in maintaining such a complex shipment delivery. Last-mile delivery managers and drivers hold a great responsibility for delivering these products.

If we compare that type of delivery with common goods, we can notice a difference in the price of delivery. Transportation trucks for the pharma industry require controlled room temperature systems, refrigerants, insulated containers, thermal blanketing, and various devices for monitoring temperature. That is why traveling from the storage to the customer needs to happen fast. Otherwise, the companies will lose money on failed shipments and discarded medical products.

Sudden on-demand deliveries benefit from cost-efficient route planning with route optimization software. The system will auto-adjust routes in an emergency and ensure timely delivery to reduce wasteful transportation costs. Furthermore, it also tracks transportation costs, giving you full visibility of your expenses.

Workload distribution is essentials

Another common issue in the pharma industry is uneven workload distribution between multiple trucks. When an urgent delivery happens, a truck must be quickly packed and sent to the delivery address. In case of a poor planning process, the truck will go half empty, while others might be overpacked. This will seriously affect transportation expenses due to fuel costs and potential maintenance issues with trucks.

Furthermore, when planning delivery routes for the entire fleet, the lack of visibility in the workload distribution process might cause additional expenses. All trucks must have proper workload distribution to ensure timely delivery to all locations.

Another reason for this issue is the shortage of experienced delivery staff. Whether we are talking about the drivers or delivery planning managers, this represents a serious issue in logistics. Limited driver capacity must have an unlimited number of requests.

Moreover, not all trucks are suitable for deliveries that require temperature control. If all trucks with the temperature-control system are on delivery, other shipments will have to wait until a truck is free. Routine optimization software can solve these complexities because it ensures even workload distribution. It automatically assigns work and calculates the routes based on driver shortage, traffic conditions, outside temperature, truck capacity, various risk zones, and so on.

The system provides optimized routes in such a way that they do not involve additional costs or any human error. Furthermore, if the plan of the route changes, the system quickly recalculates the next best route.

Route optimization benefits the pharmaceutical industry in many ways

The entire pharma industry depends on the transportation and distribution processes. Advanced technology for route optimization benefits the pharmaceutical industry and ensures on-time urgent deliveries. Furthermore, it reduces unnecessary labor, fuel, and visibility costs and maintains the quality of the last-mile delivery services. The entire future of the pharma industry dramatically depends on route planning and route optimization software.

Author bio

Lester Martens is a professional blogger and content creator for Bright Futures Treatment Center. He has a huge passion for researching advanced system technologies and project management. Lester aims to help both small and large businesses to ensure the quality of service.

A delivery truck filled with well-organized parcels is key to optimizing your shipping routes.
Archives, Education, Global Logistics, Global Trade Daily

Complete Guide to Optimizing Your Shipping Routes

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A delivery route is a sequence of stops your drivers will take when you send them to deliver products to your customers. With online shopping becoming extremely popular over the years, the shipping routes have also become quite exponential. That makes the task of creating routes more complex. There are many locations to cover, and you need good drivers who can accomplish the job on time. Let’s discuss the key components of optimizing your shipping routes.

Why do you need route optimization?

Optimizing the route your drivers will take on their delivery rounds is essential for your business. You want your courses to be efficient, covering as many deliveries in one go and quickly. Along with delivering the cargo in top shape, speed is another key element that heavily affects your customer’s satisfaction with your delivery services. The happier your customer is, the more likely they will suggest your services to their friend, bringing you new customers.

Additionally, with the increase in fuel costs, your routes need to be as efficient as possible to reduce your costs when making deliveries. As your business grows, your demand for new vehicles will also increase. You don’t want to oversaturate your company with delivery vehicles. Instead, maximizing the number of parcels to be delivered per vehicle is essential for the overall reduction in fuel costs and route optimization.

Make use of route optimization software

Making routes manually is an outdated and prolonged method. On top of that, planning out multiple delivery routes for numerous drivers makes the process quite tricky. That’s why many delivery companies are using route optimization software. These programs can easily make an optimal route by just inputting your customer’s addresses. The program will automatically give you the shortest and most convenient route for your drivers to follow.

However, the route optimization software can’t do all the work for you. Many other factors must be considered if you wish to avoid delivery delays. Here are other logistical issues you must resolve when optimizing your shipping routes.

Different parcel delivery types 

Packages come in all shapes and sizes and will be delivered to different locations. Some customers want their package delivered at their threshold, some want a curbside delivery, while others might want a white glove delivery. These factors can vastly affect the speed of your delivery. 

Sometimes, the deliveries involve installations, adding more time to your route. Such deliveries, although seemingly optimal due to their proximity if they are close to each other, might not be as optimal in practice due to their type. Your driver must invest the time to install the product into your customer’s home. That time also has to be accounted for in your route. That is why you should always determine the delivery methods for each customer before creating the route. 

Therefore, try to organize routes per delivery type. On the one hand, curbside deliveries are quick and easy. Your drivers can make such deliveries in large numbers without an issue. By putting only curbside deliveries in one route, your drivers will be available sooner to take another delivery route. 

On the other hand, parcels that require a white glove delivery are pretty delicate. Dedicating some drivers to white glove deliveries, which take more time, will let them focus more on the quality of the delivery itself. Mixing the delivery types will slow down the process if your driver has a couple of fragile objects to deliver on top of a dozen regular parcels.

Maximize your vehicle’s capacity

Having an unoptimized vehicle capacity use will waste both your time and increase your fuel costs. Many delivery companies stress the importance of using your vehicle’s transportation capacity entirely. It is critical for achieving maximum performance and the most optimal delivery. Account for the maximum carry weight and the maximum number of packages that can fit into your delivery cars. That is important for optimizing your shipping routes as it will let you know how many packages you can fit into one vehicle. 

Analyze the efficiency of your drivers

An optimized shipping route means little if you don’t have drivers who can complete them efficiently. It would be best to track your vehicles when making deliveries to see how well the drivers complete their routes. With driver shortages in most industries, you will want your drivers to be at their best. Help them improve their performance if there is room to better their delivery efficiency.

Final thoughts

There are many steps to take into account when maximizing the efficiency of your shipping routes. An advantage over your competition is key to staying ahead in the delivery industry. The route optimization software can only do so much and cannot account for all the factors affecting your routes. You must also include your vehicle’s capacity and driver’s skill. The type of delivery will also greatly influence the speed of your routes. Some deliveries will be unique and take longer than others, like curbside deliveries. Therefore, keep in mind all the minutia when optimizing your shipping routes. 

Bio: Charles Smith is a freelance author working with moving companies like evolutionmovingdfw.com for over two years. He writes articles on delivery optimization and helps startup delivery companies grow and develop.