Spatial analytics solutions are used to organize, combine, manage, and query data from across silos. Intuitive visualization complements this approach. Ideally, it will work across devices, meaning each logistics company employee can gain valuable insight.
Spatial analytics software enables companies to identify optimal routes while considering road conditions, vehicle and driver profiles, depot status, and other variables. A spatially focused route optimization tool can keep customers happy and reduce fuel costs and carbon emissions.
Improving the geospatial coverage of store networks
Logistics companies are turning to store networks to serve as pickup and drop-off points to minimize failed deliveries. With the rising popularity of ecommerce, increasing the geospatial coverage of those networks is paramount in terms of profitability, particularly considering higher-value items.
The role of GIS software and mapping tools in fleet management
The global geographic information system software market was worth $8.35 billion in 2022 and is expected to surpass $29 billion by 2031, growing by 15.1% during the forecast period. The increasing number of smart cities accounts for market growth. GIS software and mapping software are similar but not the same. GIS software captures, manages, analyzes, and visualizes spatial and geographic data. Mapping tools are generally used to create and display maps, often with a focus on visual presentation. The best mapping software also enables in-depth spatial analysis.
Fleets across the US use mapping and GIS software to reduce costs and improve efficiencies. The data provided by this software is essential in the context of fleet management and logistics. Businesses use it to reduce delivery periods and overall operating costs by making well-informed decisions. The data helps identify supply chain bottlenecks so people can make quick fixes to ensure smooth transit and customer satisfaction.
Monitoring traffic in real-time
Logistics platforms can use geospatial data to monitor real-time traffic conditions and find new delivery routes around bottlenecks. Deliveries can be made on time, even during road accidents or high-traffic hours.
For example, you can automatically reroute a delivery truck from a congested downtown area to a less crowded alternative. Real-time data enables dynamic decision-making without manual intervention, saving valuable time.
Managing multi-stop deliveries
Multi-stop deliveries involve complicated factors, such as the distance between stops, vehicle capacity, and delivery time windows. Spatial analytics software uses advanced algorithms that consider all possible factors that could play a role and create an efficient stop sequence. This capability is crucial for logistics firms that manage large fleets, especially in food delivery or ecommerce, where drivers need to complete hundreds of deliveries in one day.
Multi-stop route planners make sure fleets reduce the time spent on the road and the distance traveled, leading to significant cost savings in driver wages, fuel, and vehicle amortization.
Reducing fuel consumption
Fuel is a big part of operating expenses. As of 2024, logistics expenses comprise between 25% and 45% of total costs and up to a fifth of product prices, depending on the type of business and its activity. Transport costs make up almost 58% of total logistics costs. In 2022, global logistics expenses totaled $11.43 trillion, up by almost $2 trillion from the previous year.
Spatial analytics tools consider road conditions, terrain elevation, vehicle type, and other relevant factors to reduce fuel consumption. Some roads are shorter but steeper, and vehicles burn more fuel than they would on a longer but slightly sloped route. The software analyzes these variables and chooses a fuel-efficient route that allows compliance with preset delivery schedules.
Analyzing road networks
Finally, road network analysis interfaces have a crucial advantage for logistics operations that cover urban and rural environments with varying road infrastructures or large geographic areas. The analysis outlines alternate routes that might not be immediately obvious but ultimately offer a better speed-to-distance balance.