Route optimisation

Route optimisation assigns stops and vehicles while balancing cost, driving time, capacity and time windows. Definition with worked example.

Editorial and specialist review: Max Valjan · Last updated: August 18, 2026

TMS & dispatch

Route optimisation is the computational improvement of one or more delivery routes. It decides which stops belong to which vehicle and in what sequence they should be visited, while considering distance, driving time, capacity, service time, time windows and working limits.

Route planning versus optimisation

Route planning covers the complete operational process from orders to an executable route. Optimisation is the mathematical step within it: many feasible alternatives are scored against defined goals. Dispatch then checks whether the proposed plan makes sense in live operations.

Required input

  • collection and delivery addresses with time windows
  • realistic loading, waiting and service times
  • vehicle locations, capacities and equipment
  • driver availability and operating rules
  • priorities and mandatory or forbidden assignments

If a loading dock closes at 2 pm but that information is missing, the shortest result can still be unusable. A good system therefore makes assumptions and rule conflicts visible.

Worked example

A courier initially sequences eight stops by order intake. The route covers 146 kilometres. After including two tight time windows, current vehicle locations and a return load, a feasible route covers 119 kilometres. The model saves 27 kilometres and reduces planned empty mileage from 38 to 19 kilometres. Actual savings depend on the order mix and the operator's own cost inputs.

Balancing objectives

Minimum mileage can cause late deliveries, while maximum vehicle utilisation can create long detours. Operations therefore weight several objectives and protect hard constraints first. New orders also require the ETA to be recalculated.

Within a TMS, order data, route suggestions, driver status and proofs of delivery work together. Maxmove presents optimisation proposals in that operational context so dispatchers can inspect and adjust them.

CalculationBefore-and-after calculation

Eight stops resequenced

A synthetic example compares distance and empty mileage.

  1. Intake sequence

    146 km

    38 km empty

  2. Optimised route

    119 km

    19 km empty

  3. Difference

    −27 km

    with the same 8 stops

Original Maxmove model using synthetic data; real results depend on orders and constraints.

Frequently asked questions