Amazon’s Cost Saving Routing Algorithm Makes Drivers Walk Into Traffic

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3. How Can a Delivery Route Planner Optimizes Last-Mile Delivery?

An AI-backed routing and scheduling software can optimize last-mile deliveries through smart work allocation, which saves precious time for your fleet. Shipments are allocated to agents in a logical order to ensure maximum work in minimal time, reducing the burden on your last-mile delivery partners while ensuring accurate deliveries. Such software is also capable of dynamic re-rerouting, which means your delivery partners are notified in time of any upcoming congestion or no-entry windows, with an alternative route they can follow to complete the delivery. Modern delivery management software makes logistics operations transparent for customers. It keeps customers abreast with the delivery proceedings through alerts and notifications.

It empowers delivery partners to collect electronic proof of delivery (ePoD) as an image, signature, or timestamp and feedback for your business.

Role of Delivery Route Planning App

Modern delivery route planning software also helps enterprises leverage the power of mobility. It’s accompanied by a smart delivery route planning app. This app empowers drivers to boost their productivity, keep a tab on their performance and know in advance the number of tasks/jobs he or she needs to accomplish in a given day. Such an app also helps delivery managers keep track of the whereabouts of delivery executives, quickly gain insights into KPIs like delivery success rates, number of delivery delays and more.

Reason #1: Manually solving your VRP is incredibly complicated

When you’re solving your delivery service’s vehicl

When you’re solving your delivery service’s vehicle routing problem, there are several factors you need to consider.

Let’s take the most straightforward type of delivery service — a single driver service that delivers products from a local business to residential customers within business hours. The more deliveries you can make in a day, the more profitable your business is because you’re spending fewer resources — such as time and fuel — on each delivery.

One of our customers — Sagar Khatri — knows this very well.

Sagar is a subcontracted courier. He picks up pack

Sagar is a subcontracted courier. He picks up packages from warehouses and delivers them the same day. Because he is paid per parcel, he’s motivated to make as many deliveries as he can in a day. For Sagar, solving the vehicle routing problem literally gives him a raise.

When he started using Circuit, he doubled the number of deliveries he could make in a day. Sagar was able to double his number of deliveries for two reasons:

  • He used our route optimization software to create fast and efficient routes. Unlike manual processes, Circuit gets the fastest route every time, in a matter of seconds.
  • He used our free mobile app as a way to leave notes for each stop. Like many couriers, Sagar wants to cut down on time anywhere he can. When he loads his vehicle with packages, he leaves notes of the package’s physical description in the Circuit app on his phone. That way, when he gets to a stop, he can see what the package looks like on his phone. Now he isn’t sifting through a sea of brown and white packages in the back of his vehicle.

11. How Does a Delivery Routing Software Help Logistics Stakeholders Create a Delivery Route Efficiently?

A delivery routing tool has several benefits for logistics stakeholders:

  • Optimized route planning for faster and accurate deliveries
  • Save money on fuel and labor costs through better routes and lesser dependency on humans
  • Map delivery routes accurately to customer location
  • Real-time visibility into the fleet to keep check on your drivers at all times
  • Customers receive automatic updates regarding their deliveries, which makes it easier to manage expectations
  • Transparent supply chain with full control over your deliveries
  • Predictive intelligence algorithms for maximum safety and efficiency
  • App-based communication with all the stakeholders involved in the process for seamless collaboration
  • Leverage home delivery routing software that makes KPI benchmarking highly accurate and boosts same-day/one-hour home delivery volume


It builds on the brilliancy of DBSCAN, but at the same time allows us to dig in deeper into high waypoint-density regions, while grouping remote orders together.

For a list of orders, we aim to find the radius for which the average number of waypoints will be the biggest (but the number of clusters will be higher than min_no_clusters). We do so by using a simple binary search algorithm.

Once we have found the optimal solution we “enter” the clusters that are too big and apply the same logic until we reach a point when each cluster contains less than max_len_cluster.

Then, for each cluster, we run Route Optimization algorithm we have developed using Google Optimization Tools. Hopefully, this will give us a similar result more quickly, and using less RAM memory.

The pseudocode is as follows:

About the author

David Klose Contributor

David is a content writer based out of Phoenix, Arizona. He has written for SaaS and e-commerce companies, as well as several mattress blogs. His work on sleep health has been featured on and Yahoo! Lifestyle.

The future

We are aware that our tool is not perfect.

One of the main problems is that it is still a static method, that once run will not update itself if a better route becomes available, or if the road situation changes. We have a few options in this case, one being implementing geohashing like Lyft , or another one coming from our partner — Research Facility in Big Data Analytics at PolyU Hong Kong.

Our goal is to improve the Route Optimization so that it constantly monitors the drivers and sends alerts if the drivers are at risk of not making it on time with some parcels — all that to make our customers happier with our service.

Hopefully, this article has provided you with some good insight into the problems that we tackle at GOGOVAN. If that sounds interesting to you, or you are just interested in finding out more, please do not hesitate to get in touch.

There is naturally a lot ground for future improvement, but we hope to share some of our approaches in order to spark discussions and progress in a fascinating area of optimising on demand logistics operations.