How Dynamic Route Planning Helps Logistics in the Philippines


 Everyone’s got a plan until they get hit —Joe Louis

It is a universal experience that while you may plan for something—a project, a commute, or even a trip’s itinerary, a particular aspect is likely to deviate from the “plan.” Correct? Yet, businesses don’t come to a complete halt when things go awry. Instead, they continue dynamically planning to reach their desired “destination.

Importance of Dynamic Route Planning in Logistics

Similarly, businesses in the supply chain industry recognise that just manual planning doesn’t cut it. And for good reason.

Reactive Versus Proactive Logistics Optimisation

Business scenarios can change immediately, potentially throwing a wrench in painstakingly laid-out route plans. Additionally, it becomes a costly affair.

Some of the ensuing results of last-mile delivery route plans can be:

  1. Excessive Lead Time
  2. Unoptimal total travel distance of the delivery fleet
  3.  Failure to serve the maximum number of touchpoints for a planned trip  

A Business Insider report shares that “as a share of the total cost of shipping, last-mile delivery costs are substantial—comprising 53% overall.



Manual Route Planning in the Asia-Pacific Region

A report by HERE, titled “APAC On The Move,” surveyed 1,300 logistics businesses across APAC. One finding is that end-to-end supply chain visibility is a distant dream for many nations in the APAC region. There are striking disparities between member nations.

Consider the excerpts below:

Almost half of the companies we spoke to rely on manual inputs for portions of the asset tracking and shipment monitoring they do.

Almost 70% of companies in Japan are leveraging real-time tracking with no manual inputs. Over 60% of Chinese logistics firms are using asset tracking and shipment monitoring software with no manual inputs to track assets shipments and cargo. On the other hand, almost 10% of Indian firms are entirely reliant on manual processes. The cost of inaction is a lot.


Relevance of Dynamic Route Planning in the Philippines

Last-mile deliveries are a critically important stage in the delivery process. Yet, they aren’t without their fair share of problems. Last-mile delivery, particularly in Southeast Asian nations like the Philippines, presents unique challenges. Diverse geography leads to densely populated areas, narrow streets, and traffic congestion, among other things. Moreover, inclement weather conditions, such as heavy rainfalls, add to the mix. We previously wrote about how growing economies like Vietnam are using Trip Planners. Therefore, it is vital to automate route planning. Let’s find out more.

How Logistics & Supply Chain Optimisation Software Can Help

The growing realisation is that it is no longer a luxury to oversee the following:

  1. Remove reliance on manual processes,
  2. Implement a digital transformation and,
  3. Migrate to route planning and route optimisation software

Here, dynamic route planning and real-time route optimisation come into play. 

Fundamentals of a Route Planning Software

Dynamic logistics planning software helps generate the most efficient and cost-effective route plan by considering business “constraints.” In her paper Improving Last Mile Delivery in Emerging Markets of Latin America and the Caribbean, Shyanne Telfer has identified fifteen metrics for monitoring the performance of last-mile logistics operations:

  1. Drop Density or Customer Density
  2. Drop Factor
  3. Route Efficiency
  4. Window Length
  5. Demand Volume
  6. Product Variety
  7. Costs
  8. Transportation Cost 
  9. Product Margin
  10. Product Availability
  11. Service Capacity
  12. Service Reliability
  13. Product Returnability
  14. Consumer Physical Convenience
  15. Order Visibility

Next, two critical challenges in transportation and logistics are:

  1. Customer and customer’s customer expectations, and
  2. Barriers to Efficiency—“constraints” 

Benefits of Using Dynamic Route Planning Software

 Route optimisation starts where route planning ends.

Powerful dynamic route planning software powered by artificial intelligence and machine learning can help eliminate operational bottlenecks. Moreover, organisations can customise these platforms to solve constraints particular to their business scenarios. What’s more, Mojro PlanWyse offers a library of 125+ prebuilt constraints! For example, using Mojro PlanWyse, businesses can customise constraints around “Parallel Deliveries,” “Delivery and Pickup,” and even “Multi Trips. Therefore, businesses can better manage deliveries within allowable hours to avoid shipping delays or missed deliveries. Here are some of the benefits which organisations can accrue.

Enable Automation

Dynamic route planning software removes dependencies—eliminating single points of failure. The software automatically generates multi-drop routes. Moreover, it reconfigures them in real time whenever new information becomes available. This feature allows businesses to proactively respond to dynamic changes like weather and traffic conditions. Furthermore, automating the delivery process enables accurate ETAs and adherence to SLAs to be calculated.

Improve Asset Utilisation

In transportation and logistics optimisation, driving efficiency and cost savings are paramount. Dynamic route planning software enables better utilisation of assets—the delivery fleet—by avoiding or reducing empty or only partially loaded multi-drop trips. The result is a marked reduction in the cost of operations.

Deliver End-to-End Visibility

Organisations often lament the lack of end-to-end visibility of their logistics operations. Logistics planning software provides real-time visibility to every stakeholder in the operation, including fleet drivers, area managers, Chief Information Officers, and more. Such software allows for role-based access to real-time information.

Achieve Sustainability Goals

By tying it all together, businesses can make a visible environmental impact. Consistently utilising fewer resources, decreasing the total fuel burned, and running leaner operations allow firms to diligently meet sustainability goals.


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