Use our free calculator to create a ROI-based business case for Optimization

Updated: Oct 27, 2019

When a company considers new tools and techniques such as Optimisation as a Service (OSaaS) to improve the efficiency of their operations, it is important to calculate the potential Return on Investment (ROI) to justify the time and money that will be invested. This is relevant for Supply Chain, Logistics, or any other mobile workforce business. However, it can be challenging for companies to know what factors ROI should be measured on, and some factors are less obvious than others. Adiona uses five key metrics to calculate ROI for mobile workforce optimisation.

Investment in optimization plants a seed for huge future efficiency gains.

1. Reduction of average travel distances

While it’s just the beginning (read on!), the most obvious factor is the benefits of routing optimisation. By reducing the average travel distance of each route, companies will be able to save on fuel and greenhouse gas emissions. This has obvious economic benefits, but it also fits into corporate social responsibility goals, giving the company a clear competitive edge. We have developed fast, proprietary techniques to analyze the potential benefits for each unique operation, as the ROI can vary greatly.

2. Reduction of route planning time

With optimization SaaS, companies can reduce the time it takes for drivers to plan their routes manually each day or week. With less time spent planning routes, drivers can invest more time in providing their services or delivering their products. A 30 minute reduction in planning time could potentially result in 6-8 additional jobs per driver per day. This also has benefits for the drivers’ wellbeing and energy levels; they can focus on driving, knowing that the software has given them the best route and organisation of their destinations.

3. Reduction of vehicle loading and sorting time

Automation and optimisation is about more than just routes. Adiona’s optimisation algorithms ensure jobs are bundled by business constraints. For a delivery workforce, these are things like vehicle capacity and usage maximisation, volume and weight constraints, and time windows. For mobile services, there are constraints on client needs such as timing, weather, language, certifications, and tools/assets. ROI needs to be estimated for each type of business based on its particular constraints and optimization goals.

4. Reduction of total routes through increased routing efficiency

Through the creation of more efficient schedules, bundling, and routes, companies will be able to right-size the fleet, saving the costs of vehicle maintenance and personnel.

5. Avoidance of late deliveries

The Optimisation SaaS will greatly improve the timeliness of deliveries, helping companies to avoid customer refund requests or service rescheduling. ROI estimates should focus around understanding the current rates and costs of reverse logistics and rescheduling, as well as how these affect customer loyalty and satisfaction depending on the nature of the business.

Adiona has created a unique ROI estimation process that uses the factors we’ve discussed in this article to rapidly determine the benefits that OSaaS can bring to your organisation. This can be built into a business case and used for budgeting, and justify the investment in a process that will transform the efficiency of your company.