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How is Location Intelligence Changing Route Optimization?

By Tanvir Singh 28th July 2020

Rita visits her favourite bakery to buy the honey cakes she loves. Immediately, she receives a notification on her phone asking her to review the bakery and the amenities it possesses. Does this sound familiar? Not only are Rita’s movements tracked and recorded, she is also being prompted to add in her unique human knowledge to improve the data available about the location.

Human beings generate data every second of their life. It is estimated that in 2020, every human being on earth will generate about 1.7 MB of data every second. Their financial transactions, interests, preferences and location constantly provide data points that provide inputs to governments and businesses about their next best strategy.

What is Location Intelligence?

Location Intelligence collects spatial data in order to enhance decisions that are at the core of any logistics and delivery management app. It enables companies to use location and its related data points and create different use cases suitable to their company. Location intelligence is on its way to become a vital component of on demand delivery businesses. 

Location intelligence finds its immediate application in businesses that are spatially dependent, such as businesses dealing with delivery and logistics. Data collected through infrastructure sensors, cameras and traffic mapping not only allows them to determine prime locations for their business, warehouses and hubs but also lets them know why certain locations directly impact the success or challenges in their business. It is no wonder then that the location intelligence markets are estimated to grow to USD 22.8 billion dollars by 2024

Businesses like Amazon have already incorporated location intelligence in order to not only understand their customers better but also to enhance the way in which they conduct their operations, aimed at reducing costs and increasing efficiency.

What is Route Optimization?

Many businesses still depend on manual logistical operations in order to decide on optimal routes for the most efficient delivery systems. However, the process is time consuming and does not yield the best results over time. Route optimisation through location intelligence can help your business in the following ways:

  • Helps determine traffic movement
  • Selects the best route for delivery
  • Helps assign tasks to various delivery agents
  • Uncovers hidden location data points
  • Ensures cost effectiveness

1. Helps determine traffic movement

Urban traffic congestions increase the time it takes for a product or service to be delivered to the customer. It restricts movements from hub to another and increases time spent by the delivery agent on per task. 

Location Intelligence helps businesses assess the best timings for movement, suggests alternate routes as well as determines the time spent at signals. Delivery route planner apps aid businesses in planning optimal times for delivery. Here’s how the workflow of a last-mile delivery software would look:

  1. Identify possible routes to the destination
  2. Analyse real-time data on traffic and green signals
  3. Calculate best possible alternate routes
  4. Analyse different factors like time of day in providing certain results.
  5. Assigning the task to the nearest agent.
  6. Tracking last -mile delivery.

2. Selects the best route for delivery

Route management software suggests best routes for delivery and assigns delivery tasks to agents closest to the route. It increases the efficiency of supply chain management and optimizes delivery routes for delivery agents. Location Intelligence provides insights into the shortest route available between pick up and drop locations adding to the overall cost efficiency of the process.

3. Uncovers Hidden Data Points

Manual planning of logistics does not uncover significant data about delivery processes. Last mile delivery software through its machine learning capabilities allows this data to be discovered in order to understand the unique way in which your business operates.

Once data points are available through location intelligence, it is only upto the creativity of the business to determine how it would use such data. 

For example, while a company many realise that certain areas and neighbourhoods give them a high volume of business, the reasons behind this may not be clear. Location Intelligence discovers through data which variables ensure some areas yield higher results from a business and why some areas do not.

4. Ensures Cost Effectiveness

The most immediate result of route optimization is cost-effectiveness. It results in positive benefits to the business in multiple layers. Route optimization software can help your company save anywhere between 20-30% on fuel and increase your output by 100% depending on your business.

Firstly, route optimisation allows drivers to opt for the shortest distance between two delivery points thus reducing not only their time consumption but also decreasing the amount spent on fuel. It also increases productivity by allowing the agent to do more in shorter spans of time..

It also erased the chances of bottlenecks for all those involved in the operations from the first point of dispatch to the final point of delivery. Data inputs through delivery tracking systems helps stakeholders at every point be better prepared for receiving and dispatching items at every point in advance. 

Next, delivery route planner apps increase the chances of the delivery reaching the end consumer on time. This avoids frustrations and potential loss of business caused by delays. A positive delivery experience incentivises the customer to return to your business.

5. Vehicle monitoring systems

The best route optimisation apps help track vehicular movement which enable tracking of goods and goods-carrying vehicles. 

A truck accident can cause a company approximately USD 140,000 depending on their location and the severity of the accident.

Delivery tracking software can not only assist in designing the optimal routes for delivery journeys but also factor in variables like driver fatigue, weather conditions, road constructions and so on. Even though seemingly straightforward, preparation for such scenarios reduces the probability of a road accident that could cost the company a lot of money for

  • Vehicle replacement
  • Medical costs
  • Insurance
  • Loss of clients and customers
  • Delays in production and delivery
  • Loss of goods
  • Finding replacement drivers/employees
  • Continuing to pay employees salaries if they meet with accidents.
  • Loss of time

Besides this, it can also protect your vehicle fleet against theft, prolong the use of vehicles and keep your business and your drivers safe.

You Can Create Your Own On-Demand Delivery App

Do you have an on-demand business idea like Uber or Amazon? You can now create your own on-demand delivery app. Through investing in white label on demand delivery apps, you reduce time spent on software and technology and increase the time that you spend on your business. 

JungleWorks is a brand that is trusted globally with clients such as KFC, McDonald’s and Pizza Hut. Through its white label on demand delivery apps, you can create software customised and branded according to your business.

From food delivery app development to cab aggregators, any business can be tracked and managed through the professional software suite available on the JungleWorks platform.

Tookan: Delivery Management Systems

Tookan offers a complete toolkit for all your delivery needs. It is a delivery route planner app that includes route optimisation, geofencing, agent scheduling and real time tracking.

Jungleworks’ on-demand delivery app, paired with Tookan, a delivery route planner app, creates a flawless and integrated workspace for you to plan, manage and ultimately deliver your orders. 

Tookan provides you with unique data through which you can:

  • Perform Targeted Advertising: The effectiveness of your advertisement increases when it is targeted to the right people at the right time.
  • Enhance Marketing Communication: Location provides context about the data generated. Once a business is aware of the context from which their customers are coming from, it becomes easier to connect with them.
  • Customer Analysis: Know your customers, their location and behaviour patterns better with Tookan.
  • Business Forecasting: Make better decisions once you are equipped with the right information customised to your business.
  • Site Planning & Selection: Know the best location for your next store or for your next advertisement placement.
  • Attribution Analysis: Do you want to know how effective your offline advertisements are? Tookan can help you.
  • Mobile Platform: You can track your transportation services and delivery right from Tookan’s Mobile application. The user dashboard provides you with the option of tracking, assigning and managing tasks from your mobile device.

Also, read – Top 5 Route Optimization Software in 2021


Technology is a huge advantage for businesses of any size and scale. With Location Intelligence and Route Optimisation on your side for your on demand delivery app or business, you will be adding an edge to the way that your business works.

Making informed decisions are the key to optimal profits, reduction in costs and overall benefits for a business. Data provided by route optimisation apps helps calculate various factors into business decisions.

The ongoing climate of COVID 19 and the frequent lockdowns surrounding it have given a boost to the delivery segment. Many platforms such as Amazon Pantry have witnessed an increase in business due to the ease with which customers can access their products.

If you have a business or a business idea that benefits from the new technology of spatial data and route optimisation, then creating an on demand delivery app will give you an edge over competitors. 

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