Daily Challenges faced by On-Demand Delivery Businesses
In general pick-up and delivery of goods, a set of routes has to be properly defined in order to satisfy the transportation requests. A set of the fleet is assigned at each route with a specific size of load to be transported. Each vehicle has a specific capacity, pre-defined origin, and destination. In General Pick-up and Delivery problems, various complicated problems arise such as pick-up and delivery requests from multiple origins to multiple destinations on the same route. Vehicle starting from the different start point and end point, requests need to be generated in real time.
Today, pick-up and delivery of goods are demand responsive. For this, the request should be available in real time and must be considered in real time only. Another key point, routes need to be optimized to include new requests.
Biggest Challenges in Pick-up and Delivery business
The main issue is the timing of transportation requests. In the static situation, that is the requests are known before the construction of the route. The challenge arises in the dynamic situation when the request comes in real time. In such situations, the routes have to construct and request becomes available in real-time during execution of the route. Routes need to be changed in order to serve the new requests in real time. The vehicle routing problem is static but the pick-up and delivery problems are dynamic.
unlike the vehicle capacity constraints, the time constraint is the major issue in pick-up and delivery business. Despite the fact that, the time constraint is the part of vehicle routing algorithm, time constraint play even more important role in pick-up and delivery business. The time constraint arises due to the reason that people won’t pick-up and delivery of goods at a specific desired time. It’s quite difficult to construct a specific route handling real-time requests along with time constraint restriction. Optimization is the best solution that can result into best planning when time-space is very small due to the presence of time constraint.
Usually, vehicles aren’t available all the time. The driver has to stop to eat, sleep and most importantly for fuel filling and maintenance of the vehicle. Such constraints can be solved by introducing a time window of the vehicle. Typically, the time window of the vehicle includes multiple windows such as availability, on duty, under maintenance and many more depending upon the service.
Objectives of Pick-up and Delivery business
when discussing the pick-up and delivery business, a wide variety of objectives comes into the picture. Usually, the objectives are inclined toward single vehicle pick-up and delivery. All those objectives are also true for dynamic pick-up and delivery situation.
Minimizing Delivery Time
The primary objective in any pick-up and delivery business is to reduce the delivery time to the minimum. The total delivery time includes travel time, loading time, unloading time and waiting time. Today, technology is so advance that the optimization is being done at every step in order to reduce delivery time.
Minimizing Completion Time
the completion time is the time that is consumed to complete the last request on a particular route. That includes the loading and unloading time of multiple requests and travel time. The best solution to minimize the completion time is to load the vehicle in a way to minimize the unloading time.
Minimizing Travel Time
In pick-up and delivery business, the traveling time to reach the destination from origin or starting point can be reduced. Multiple routes optimizing software are available that suggest the best route to reach the destination in minimum time and using the shortest path. Route Optimizing software capture real-time traffic data and suggest the best way of ensuring delivery of goods in minimum time.
Minimizing the number of vehicles
Adding multiple vehicles on the same route to cater request that a single vehicle can fulfill adds cost to the business. Drivers and vehicles are the most expensive part of delivery management. Introducing delivery management software and delivery schedule software can result in minimizing the number of vehicles to serve all the requests.
Majorly the requests in pick-up and delivery business are demand responsive that can be served with geographical allocation in the dynamic situation. The same vehicle can be allocated to multiple requests in case of pick-up locations are in close proximity. Several solutions are proposed but they cater to solve only one issue. Pick-up and delivery business requires multiple solutions such as route optimization, real-time tracking, loading and unloading process optimization and many more.