What does route optimization save?
Route optimization means planning the order of stops and the roads between them so the same work takes fewer kilometers and less time. The money shows up in three places: running cost that follows distance (fuel, maintenance, tires), driver time paid as overtime, and capacity freed for more stops in the same shift.
This route optimization savings calculator turns those three effects into monthly and yearly figures, for the fleet and per vehicle. You enter today's baseline and the reductions you expect. The Sensitivity tab then shows how the result moves between a cautious and an optimistic case, so you can see how much of the value rests on your assumptions.
Where route planning savings come from
- Fewer kilometers. Every kilometer cut saves its variable cost: fuel, plus the maintenance and tire wear that follow distance.
- Less overtime. Shorter, better-ordered routes can bring drivers back within their shift. Overtime is often paid at a premium, so each hour saved is worth more than a normal hour.
- More stops per shift. The time freed can go to extra deliveries or visits instead. That is revenue, not a cost saving, and it only counts if customers want the stops.
- A clear baseline. Measuring kilometers, stops and overtime before a change is what lets you prove the saving afterwards.
What data do you need to estimate route savings?
| Input | Where to find it | Tip |
|---|---|---|
| Distance per vehicle per day | Trip reports, odometer readings, fuel cards | Use an average over several weeks, not one day. |
| Stops per vehicle per day | Dispatch or delivery records | Count completed stops only. |
| Fuel consumption and price | Fuel log or fuel card statements | Use L/100 km measured on your routes. |
| Driver cost and overtime | Payroll and timesheets | Overtime is the time paid beyond the normal shift. |
| Expected reductions | A pilot on a few routes, or a routing trial with your own stops | Keep the expected case modest and test it. |
How route optimization savings are calculated
Monthly baseline
Savings in a scenario
Route cost per stop divides distance and overtime cost by the number of stops, today and in the scenario. The low and high cases repeat the same calculation with their own reductions and extra stops.
Worked example: a 20-van fleet
A fleet of 20 vans works 26 days a month. Each van drives 180 km a day and makes 25 stops. Fuel costs 1.00 per liter at 14 L/100 km, and maintenance and tires add 0.08 per km. Drivers cost 12 an hour, overtime is paid at 1.5 times, and each van averages 45 minutes of overtime a day.
- The fleet drives 20 × 26 × 180 = 93,600 km a month, at 1.00 × 14 ÷ 100 + 0.08 = 0.22 per km.
- A 10% cut saves 9,360 km a month: about 1,310 liters of fuel, and 9,360 × 0.22 = 2,059 in running cost.
- Overtime is 520 × 45 ÷ 60 = 390 hours a month at 18 an hour. Cutting it by 30% saves 117 hours, or 2,106.
- One extra stop per van per day at 3 per stop adds 520 × 3 = 1,560.
- The scenario is worth 5,725 a month, or 68,702 a year: about 3,435 per van per year. Route cost per stop falls from 2.12 to 1.73.
- The low case (5% distance, 15% overtime, no extra stops) gives 24,991 a year. The high case (15%, 45%, two extra stops) gives 112,414.
How to read your route savings results
- Scenario value is what your assumptions are worth, not a measured saving. Treat it as the target for a pilot.
- Value per vehicle lets you compare with the cost of a routing tool or planner per vehicle.
- If extra stops make up most of the value, the case depends on demand for those stops, not on routing alone.
- A wide gap between the low and high cases means the decision rests on your assumptions. A pilot narrows it.
Common mistakes when estimating routing savings
- Using vendor percentages as your own. Published reductions come from other fleets and other routes. Start from your own pilot.
- Counting the full cost per km. Driver wages, insurance and depreciation do not fall with each kilometer. Use variable cost only.
- Counting overtime that is not paid by the hour. If overtime is a fixed allowance, cutting minutes may not cut cost.
- Taking overtime savings and extra stops at full value together. Extra stops use the time the plan frees. If drivers fill it with stops, they will not finish earlier.
- Comparing different weeks. Seasonal demand changes kilometers and stops. Compare like-for-like periods.
Assumptions and limits
Results are scenarios based on the values entered, not a forecast or a promise. The calculator does not plan routes or check road conditions, delivery time windows, vehicle capacity or driving-hours rules, and it does not check that the time freed is enough for the extra stops. It assumes one driver per vehicle and counts overtime only, not normal paid hours. Confirm any saving with measured kilometers, stops and overtime before and after a pilot.