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Avantiico Microsoft Business Applications Solutions Partner. Microsoft Inner Circle Partner

Dynamic Route Planning, Optimization, & Avantiico’s Add-Ons for Microsoft Dynamics TMS

Modern logistics demands more than a static approach; it requires agility, precision, and real-time adaptability. Enter dynamic route planning: a flexible routing method that’s transformed how businesses manage their transportation networks. 

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Monty Montgomery

Introduction

By leveraging real-time data on traffic, weather, and customer order and delivery priorities, dynamic route planning ensures every journey is efficient, minimizing delays and maximizing productivity. But what sets it apart from traditional methods, and how can it be integrated into your existing transportation management system? 

Explore the core principles and practical applications of dynamic route planning and learn how solutions like Microsoft Dynamics TMS — enhanced by Avantiico’s powerful add-ons — can take your logistics operations to new heights. 

What Is Dynamic Route Planning?

Dynamic route planning is a method that adjusts travel routes in real-time based on current conditions such as traffic, weather, road closures, and last-minute deliveries. This approach enhances travel efficiency by providing the most accurate and timely routes, helping to reduce delays and improve overall journey times. Unlike static route planning, which follows a fixed path, dynamic route planning offers greater flexibility and responsiveness to changing conditions. 

Dynamic Route Planning Example

Imagine you’re commuting to work during rush hour. Have you noticed how your navigation app continuously monitors traffic conditions and suggests alternative routes to avoid congestion? If an accident occurs on your usual path, the app will reroute you through less crowded streets, saving you time and reducing stress.  

This real-time adjustment ensures you reach your destination as efficiently as possible. The same principle applies to transportation management, warehousing, and distribution, where dynamic route planning adapts to changing traffic, weather, and other external factors. 

Static vs. Dynamic Route Planning

Routing is generally divided into two types: static and dynamic. 

Static route planning follows a fixed path without adapting to real-time changes, while dynamic route planning adjusts routes based on current conditions like traffic and weather. Static planning is generally simpler and requires less computational power, but lacks flexibility. Dynamic planning, though more complex, provides more accurate and timely routes, which improves travel efficiency and reduces delays. 

How Dynamic Route Optimization Works

Dynamic route optimization involves continuously adjusting travel routes based on real-time data such as traffic conditions, weather, and road closures. This process enhances efficiency by ensuring the most accurate and timely routes, reducing delays and improving overall travel times. Unlike static route planning, which follows a fixed path, dynamic optimization responds to changing conditions, offering greater flexibility and reliability. 

Dynamic routing not only adjusts routes in real-time but also integrates with load planning to ensure trucks are loaded efficiently based on delivery sequences. It also plays a critical role in last-mile delivery by adapting to real-time challenges like traffic or customer availability, ensuring timely and cost-effective final deliveries.  

Strategic Route Planning vs. Daily Planning

You already know the two types of routing: static and dynamic. But within those routing types lies two approaches, or levels of planning: strategic route planning and daily planning. These are separate methods used to optimize static or dynamic routes over different time frames and operational contexts. 

While strategic route planning is focused on making fundamental changes to policies, practices, and capacities to address shifts in demand and optimize long-term logistics strategies, daily planning — also known as operational planning — aims to optimize routes within the constraints of predefined strategies, policies, and availability. 

Strategic Route Planning

1.Treats restrictions as variables to find the best routing strategies. 

2. Adjusts policies, practices, and capacities to meet changing demands. 

3. Helps predict costs and capacity for new markets and future demand. 

4. Applies to both static and dynamic routes by setting daily routing parameters. 

Daily Planning

1.Works within existing strategies, policies, and routes. 

2. Focuses on fulfilling daily delivery commitments efficiently. 

3. Minimizes costs based on the order mix and addresses disruptions like out-of-stocks or vehicle unavailability. 

4. Enhances delivery responsiveness and precision, such as same-day delivery or one-hour time windows. 

Think of it this way: while strategic planning sets the foundation and parameters for daily operations, daily planning ensures that these strategies are executed efficiently. This relationship is key for understanding and leveraging the full benefits of dynamic route planning. 

What Is Dynamic Routing Software?

Dynamic routing software optimizes delivery routes in real-time, allowing for improved transportation efficiency and reduced costs by adjusting routes based on factors like traffic and weather. In short, it speeds up deliveries, minimizes fuel consumption, and streamlines your deliveries.  

While many Transportation Management Systems (TMS) offer dynamic route planning and optimization, some, such as Microsoft Dynamics TMS, don’t include this feature natively. This means that certain integrations — such as Avantiico’s dynamic routing add-on for D365 TMS — are needed to enable dynamic routing functionality. 

Benefits of Dynamic Route Planning Software

The benefits of dynamic route planning software include improved operational efficiency, reduced costs, and enhanced customer satisfaction. By leveraging real-time data and advanced algorithms, route planning software helps businesses optimize delivery routes, track vehicles, and make informed decisions on the go.  

Here are the key advantages to consider: 

Advanced Analytics

Dynamic route planning software provides analytical tools to review the on-road performance of your fleet. These insights help optimize delivery routes based on past experiences and suggest alternate routes in real-time when faced with issues like weather or roadblocks, reducing carbon emissions, and pollution. 

Enhanced Customer Experience

Dynamic route planning software also provides updates on routes, tracks vehicles, and informs you about completed deliveries. This ability to provide an estimated time of arrival for goods ensures customer satisfaction and allows you to monitor driver activities in real-time. 

Cost Savings

With dynamic routing, you can plan out the shortest and most fuel-efficient routes — especially for return journeys — and incorporate pickup jobs for fleets returning empty after delivery, reducing empty miles and operating costs. 

Improved Freight Reconciliation

By providing real-time visibility into delivery routes and load details, dynamic route planning ensures accurate billing and reduces disputes during freight reconciliation. 

Optimized Last-Mile Delivery

Real-time adjustments to routes and delivery schedules enhance the efficiency of last-mile delivery, reducing costs and improving customer satisfaction. 

Does Dynamic Route Planning Have Any Limitations?

Dynamic route planning can significantly improve logistics efficiency, but it does have some limitations, including the need for substantial resources, higher costs, security risks, bandwidth usage, and complexity. Additionally, some transportation management systems (TMS) don’t offer dynamic route planning out-of-the-box, meaning integrations are needed to support these features. 

Here’s a non-exhaustive list of dynamic route planning limitations to be aware of: 

  • Resource Intensive: Requires significant CPU, RAM, and bandwidth to compute routes and perform other functions. 
  • Costly: The software and algorithms needed for dynamic route planning can be expensive, making it a higher investment compared to basic planning tools. 
  • Security Risks: Dynamic routing can pose network security risks due to the need for constant updates and communication between routers. 
  • Bandwidth Usage: Continuous communication between dynamic routers consumes extra bandwidth, which can impact performance if bandwidth is limited. 
  • Complexity: The algorithms and protocols used for dynamic route planning are complex and require advanced computing capabilities. 
  • Integration Needs: Some systems, such as Microsoft’s TMS, don’t include dynamic route planning and require additional integrations to support these features. 

Microsoft Dynamics TMS: Route Planning Software Within D365 SCM

If you’re already a Microsoft Dynamics 365 user, you may be aware of the TMS functions available within Dynamics 365 Supply Chain Management. Standard Microsoft TMS capabilities include freight rate shopping, basic route optimization, load planning and consolidation, freight invoice matching, and standard API connections.  

These features allow you to compare carrier rates, optimize consistent routes, ensure full truckloads, and integrate with common carriers for rate shopping and shipment tracking — however, D365 TMS is limited when it comes to dynamic route planning.  

Thankfully, this can be solved for with Avantiico’s custom add-ons. 

What Is Microsoft Dynamics 365 TMS?

Microsoft Dynamics 365 TMS (Transportation Management System) is a feature within D365 Supply Chain Management’s Warehouse Management module that’s designed to help you plan, execute, and optimize the movement of goods within your supply chain. It provides you with tools for route planning, carrier management, load optimization, and real-time shipment tracking.  

Example: Imagine you need to deliver products to multiple locations daily. With Microsoft Dynamics 365 TMS, you can statically plan the most efficient routes, select the best carriers, and track shipments in real-time. This not only saves you time and reduces costs but also ensures that your customers receive their orders on schedule, improving overall satisfaction. 

Does Dynamics 365 TMS Offer Dynamic Route Planning?

No, standard Microsoft TMS features do not offer dynamic routing. Dynamics 365 TMS does include static route planning features, but for real-time adjustments and dynamic route changes, Avantiico’s enhancements are essential. These add-ons enable dispatchers to modify routes on-the-fly, automatically schedule delivery appointments, and ensure efficient deliveries. While Dynamics 365 TMS provides the foundation, Avantiico’s solutions elevate it to allow for true dynamic route planning. 

Finally, a Dynamic Routing Add-On for Microsoft TMS

Push the limits of your D365 TMS with Avantiico's Dynamic Route Planning add-on.
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Avantiico's Dynamic Route Planning Enhancements to Microsoft TMS

Avantiico offers a dynamic route planning add-on to enhance the standard capabilities of Microsoft Dynamics 365 Transportation Management. This add-on gives dispatchers the ability to flexibly adjust routes and automatically schedule delivery appointments based on customer call days, allowing for timely deliveries and happy customers.  

Additional D365 TMS Improvements by Avantiico

Avantiico’s enhancements to Microsoft Dynamics TMS go beyond dynamic route planning to address key challenges in load planning, last-mile delivery, and freight reconciliation: 

  • Load Planning: Uses rules-based logic to optimize truck loading based on stop sequence, pallet size, and vehicle capacity, eliminating the need for dock staging. 
  • Freight Reconciliation: Links customer-specific details, such as rates and accessorial charges, to the Transportation Management Hub, improving accuracy and simplifying the reconciliation process. Avantiico augments the standard D365 Freight Reconciliation capabilities by fully automating them, allowing you to easily identify mismatches, disputes, and confirm additional charges. 
  • Last Mile Delivery: Automatically adds new orders to existing routes and schedules delivery appointments, ensuring timely and efficient final deliveries. It also provides photographs, notes, signature collection, and emailing that information to confirm delivery. 

Enhance Your Microsoft Dynamics TMS with Avantiico

With Avantiico’s add-ons to Microsoft Dynamics TMS, you can enjoy dynamic route planning capabilities that allow you to adjust routes in real-time, automate delivery scheduling, and ensure efficient deliveries. On top of dynamic routing, Avantiico’s solutions are here to help you optimize load planning, last-mile delivery, and freight reconciliation, making your logistics as cost-effective and responsive as possible. 

If you’re already using Microsoft Dynamics 365 Supply Chain Management or Microsoft Dynamics TMS and need more functionalities, contact our team today for a demo and see the value our enhancements can bring to your system. 

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FAQs

What Is the Purpose of Dynamic Route Planning?

The purpose of dynamic route planning is to continuously adjust travel routes based on real-time data such as traffic, weather, and road closures. This approach ensures the most efficient and timely routes, reducing delays and improving overall travel times. By adapting to changing conditions, dynamic route planning enhances flexibility and reliability in transportation and logistics operations. 

How Does Dynamic Route Planning Save Money?

Dynamic route planning saves money by optimizing routes to reduce fuel consumption, vehicle wear and tear, and overall travel time. By avoiding traffic congestion and other delays, it minimizes unnecessary mileage and improves operational efficiency. This leads to lower transportation costs, extended vehicle lifespan, and reduced maintenance expenses, ultimately boosting profitability. 

Does Microsoft Dynamics TMS Include Dynamic Route Planning?

Microsoft Dynamics TMS includes comprehensive route planning features, but it does not offer dynamic route planning out-of-the-box. The standard capabilities focus on freight rate shopping, basic route optimization, load planning and consolidation, freight invoice matching, and standard API connections. For real-time route adjustments, additional integrations or enhancements are required. 

How Does Avantiico’s Add-Ons Enhance Microsoft Dynamics TMS?

Avantiico’s add-ons enhance Microsoft Dynamics TMS by providing dynamic route planning capabilities that allow for real-time route adjustments, automated delivery scheduling, and efficient deliveries. These enhancements also optimize load planning, last-mile delivery, and freight reconciliation, making logistics operations more cost-effective and responsive. This results in improved accuracy, customer satisfaction, and overall operational efficiency. 

How Do I Gain Access to Avantiico’s Dynamics TMS Add-Ons?

If you’re interested in Avantiico’s Microsoft TMS enhancements, contact us for a free consultation. An Avantiico team member will provide a demo to showcase the value of our add-ons, walk you through the integration timeline, and show you exactly how your logistical operations will benefit.  

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