vehicle routing software survey

Vehicle Routing Software Survey

The information in the survey that follows was provided by the vendors in response to a questionnaire developed by Randolph W. Hall. The survey should not be considered as comprehensive, but rather as a representation of available vehicle routing packages. Questionnaires were sent to vendors drawn from previous survey participants, the OR/MS Today database and other sources. It includes the products of those vendors who responded by the deadline. If you know of a vehicle routing package that is not in this survey, please contact Patton McGinley at (770) 431-0867, ext. 214 or e-mail them to [email protected]. They will be included in an online version.

Be sure to read the accompanying article.

UPDATES:9/24/10 — added ORTEC Transport and Distribution from ORTEC

The survey is divided into 15 separate pages. Following is an index of the pages and the information they contain:

Vendor Year Introduced Platforms Supported: Windows, Linux, Unix, Mac/Mac OS, Application as Service, Parallel Machines, Other (specify)

Page 2 Maximum size of problem solvable by the system: Number of Stops, Number of Vehicles, Number of Terminals

Page 3 Maximum size of problem solvable by the system (continued): Recommended Hardware, Processor Speed, Memory, Hard Disk Space

Page 4 Performance: Computation time to solve problem with 50 routes, 1,000 stops, two-hour hard-time windows (specify platform for calculations and any other assumptions); What types of algorithms are employed (open-ended)?; Are approximations used to reduce computation time?

Page 5 Routing Functions: Node Routing, Arc Routing, Real-time re-routing, Real-time Stop Scheduling, Daily Routing, Route Planning & Analysis, Incorporates Real-time Traffic Information, Collects Historical Travel Time Information

Page 6 Price Information: Single Site License (50 routes), Does license fee include map for one region?, What brand of map is provided?, Installation support cost ($/hour), Typical support hours needed for installation (50 routes)

Page 7

GIS Capabilities: Displays routes & stops on maps, Can edit routes with drag & drop, Geocodes stops from addresses

Page 8 Solution Algorithm: Does system accept Soft Time Windows?, If so, how are Soft Time Windows Specified?

Page 9 Product is available as part of a suite that provides: On-board electronic display, Wireless messaging to driver, Real-time vehicle tracking, Bar-code scanner, Supply chain management software (e.g. inventory mangement), Customer order processing, Computer aided dispatch for police, fire or emergency vehicles

Page 10 Features: Assigns individual drivers, Turn-by-turn route instructions, Automatic forecasts of delivery, Load manifests, Loading plan for truckload, Weather forecast information displayed to dispatcher, ETA automatically sent to the customer if there is a delay

Page 11 Types of fleets that currently use the product: Local pick-up and delivery, Long-haul less-than truckload, Long-haul truckload, Courier, Buses, Taxis, Service fleets, Emergency services (police, fire, etc.)

Page 12 Other special features Recent innovations in system

Page 13 Has your routing software been integrated with either cell phone or PDA technology? Describe the application: Have you developed other software innovations, such as use of social networking for information sharing? Describe:

Page 14 How has economic downturn affected market New features that address sustainability/green requirements

Page 15 Number of companies using software Most significant installations

Page 16 What is the largest change in the industry over the last two years? What do you expect to be the biggest change in the next two years?

Vendor List

The survey appeared in the February 2010 issue of OR/MS Today. To order a copy of this issue, contact Customer Service at 770-431-0867, ext. 224 or send e-mail to: [email protected] Routing Software SurveyTable 1

Product VendorYear Introduced

Platforms Supported

Windows Linux UnixMac OS

Application as Service Parallel

Other (Specify)

Accellos One Optimize

Prophesy Transportation Solutions, an Accellos Company

1999 y y

Direct Route Appian Logistics Software, Inc.

1996 y

DISC MJC2 1990 y y y y

DRTraCK Appian Logistics Software, Inc.

2003 y y Web Service Web Service

IBM ILOG Transportation Analyst

IBM y No

JOpt.AAS DNA Evolutions - Distributed Natural Algorithms GmbH

2009 y SOAP WebService

JOpt.SDK DNA Evolutions - Distributed Natural Algorithms GmbH

2005 y y y y y

MOBi MJC2 1998 y y y y

Mobile Asset Route Optimization

FreshStart Logistics

2009 y y Yes

Optrak Optrak Distribution Software Ltd

1988 y

ORTEC Transport and Distribution

ORTEC 2004 y y

Paragon Routing and Scheduling Optimizer

Paragon Software Systems, Inc.

1997 y

PlanOp Jeppesen, a Boeing Company

1998 y

QMms - Quant Methods for Management Science

QuantMethods 2009 y

REACT MJC2 1993 y y y y

Roadnet Anywhere

UPS Logistics Technologies

2006 y y y y Web app - multiple processors used

Roadnet Transportation Suite

UPS Logistics Technolgies

1983 y y y Multiple CPUs used

Citrix, Terminal Services

Route Planning Suite

Descartes Systems Group

2004 y y unlimited

StreetSync Basic RouteSolutions 2008 y y

StreetSync Desktop

RouteSolutions 2005 y

TruckStops MicroAnalytics 1984 y

TruckStops (UK) Mapmechanics 1991 y Server or PC

WebSTARS 5.2 SAITECH, Inc. 1995 y y optimzier available on Unix

Vehicle Routing Software SurveyTable 2

Product

Maximum size of problem solvable by the system

Number of Stops Number of Vehicles Number of Terminals

Accellos One Optimize Unlimited Unlimited Unlimited

Direct Route 12,000 10,000 1,000

DISC unlimited unlimited unlimited

DRTraCK Based on routes from Direct Route

Based on routes from Direct Route

Based on routes from Direct Route

IBM ILOG Transportation Analyst NA NA NA

JOpt.AAS unlimited unlimited unlimited

JOpt.SDK unlimited unlimited unlimited

MOBi unlimited unlimited unlimited

Mobile Asset Route Optimization 100,000 10,000 10,000

Optrak No fixed limits No fixed limits n/a

ORTEC Transport and Distribution not limited not limited not limited


20,000 3,000 2,000

PlanOp Unlimited Unlimited Unlimited


Limited by browser memory Limited by browser memory Limited by browser memory

REACT unlimited unlimited unlimited

Roadnet Anywhere Unlimited Unlimited Unlimited

Roadnet Transportation Suite Unlimited Unlimited Unlimited

Route Planning Suite unlimited unlimited unlimited

StreetSync Basic 250 Unlimited Unlimited

StreetSync Desktop Unlimited Unlimited Unlimited

TruckStops Unlimited Unlimited Unlimited

TruckStops (UK) Unlimited Unlimited Unlimited

WebSTARS 5.2 unlimited unlimited 20


Product

Maximum size of problem solvable by the system (continued)

Recommended Hardware

Processor Speed Memory Hard Disk Space

Accellos One Optimize Windows XP, Server 1.8GHz + 1GB + 100 MB +

Direct Route current level OC/server 2.8 1GB 60GB

DISC Windows or Unix based machines

3GHz 2GB 100GB

DRTraCK Web service Web Service Web Service We Service


Dual or Quad Core processor

4GB 100GB

JOpt.AAS Intel or AMD 3 GHz 4 GByte or more 200 MB

JOpt.SDK Intel or AMD 3 GHz 4 GByte or more 200 MB

MOBi Windows or Unix based machines

3GHz 2GB 100GB


2 Ghz Intel Processor 2 Gb 5 Gb

Optrak Standard PC 2Ghz (dual core or more)

4gb 15gb


dependents on the number above





PC / Windows Server Fast Intel Core, e.g. 3.6 GHZ

Minimum 512 MB 2 GB

PlanOp Intel Core2 Duo CPU @ 3 GHz

4 GB RAM 100 GB Hard Disk


Browser (Windows, Mac, etc)

REACT Windows or Unix based machines

3GHz 2GB 100GB

Roadnet Anywhere PC with Internet Access


Depends on implementation type




Route Planning Suite Windows compliant servers

Configuration dependent



StreetSync Basic Intel PC / Windows 1Ghz or faster 512 MB or greater At least 100 MB

StreetSync Desktop Intel PC / Windows 2 GHz or faster 512 MB or greater At least 2 GB

TruckStops PC. Server optional 1.4 or higher 256 kb 1 GB

TruckStops (UK) PC, Server Optional 1.4 or higher 256 KB 1 GB

WebSTARS 5.2 Windows server, PC 3.0 Ghz 2GB 80 GB


Product

Performance

Computation time What types of algorithms are employed (open-ended)?

Are approximations used to reduce computation time?

Accellos One Optimize 4-5 minutes Proprietary No

Direct Route <5 minutes Prorietary Prorietary

DISC A few seconds Multi-layered optimisation approach

No

DRTraCK Based on routes from Direct Route

Based on routes from Direct Route Based on routes from Direct Route


problem specific contact IBM No

JOpt.AAS 5 Minutes on a 3 GHz CPU

construction and improvement algthm

convergency criteria on costfuction

JOpt.SDK 5 Minutes on a 3 GHz CPU

construction and improvement algthm

convergency criteria on costfuction

MOBi A few seconds Multi-layered optimisation approach

No


< 1min on current PC configuration

AI/Expert Systems/Constraint No

Optrak 5 - 10 minutes, Win/Intel Core2 Duo

Heuristics, relaxation, genetic. Only for rush-hour time bands


5 minutes Construction + neighbourhood search

Yes, heuristics


Around 2 minutes Range of cost saved & improvement

PlanOp Minutes Column Generation and Local Search

Yes, various options and parameters


Untested LP; branch & bound

REACT A few seconds Multi-layered optimisation approach

No

Roadnet Anywhere <30 Seconds Heuristic algorithms are employed No assumptions made


<30 Seconds Heuristic algorithms are employed No assumptions made

Route Planning Suite Configuration and customer dependen

Configuration and customer dependen

Configuration and customer dependen

StreetSync Basic < 15 Minutes Proprietary Proprietary

StreetSync Desktop < 15 Minutes Proprietary Proprietary

TruckStops User settable, 1-5 minutes

Proprietary Heuristics no

TruckStops (UK) User settable, Min 1-5 minutes

Proprietary Heuristics No

WebSTARS 5.2 1 min on Windows PC with 2.8Ghz

local search, integer programming tuning parameters for local search


Product

Routing Functions

Node Routing

Arc Routing

Real-time re-Routing

Real-timeStop Scheduling

Daily Routing

Route Planning & Analysis

IncorporatesReal-time Traffic Information

Collects historical travel time information


y y y y y

Direct Route y y y y y y y y

DISC y y y y y y y y

DRTraCK y y y y y y y y


y y y y

JOpt.AAS y y y y y

JOpt.SDK y y y y y

MOBi y y y y y y y y


y y y y y y y

Optrak y y y y y


y y y y y y


y y y y y y

PlanOp y y y


y y

REACT y y y y y y y y

Roadnet Anywhere

y y y y y y y y


y y y y y y y y


y y y y y y y y

StreetSync Basic y y y

StreetSync Desktop

y y y

TruckStops y y y y y y

TruckStops (UK) y y y y y y

WebSTARS 5.2 y y y y y y y


Product

Price Information

Single Site License (50 Routes)

Does license fee include map for one region?

What brand of map is provided?

Installation support cost ($/hour)

Typical support hours needed for installation (50 routes)


Contact for pricing

y BING Included 2 Days

Direct Route $23,500 y Teleatlas/Navtech Annually billed Flat implementation and training fe

DISC POA Compatible with many map products

POA POA

DRTraCK minimal site branding fee

y Navtech/teleatlas None None


contact IBM y IBM ILOG contact IBM contact IBM

JOpt.AAS monthly fee 375ˆÑ setup cost 4 hours

JOpt.SDK 5000 ˆÑ free less than 1 hour

MOBi POA Compatible with many map products

POA POA


Varies $200/hr Varies: 24-100hrs

Optrak Price on application

y Varies according to country/problem

Price on application

Varies according to routing problem


$50K y NAVTEQ, AND, any other

$1000 / hour 240 hours


$35,000 for 100 vehicles

y NAVTEQ $755 or $930 per day

80 hours

PlanOp Price on Application

MapInfo and ESRI files supported

Price on Application

Depends on user requirements


$19.95 n/a

REACT POA Compatible with many map products

POA POA

Roadnet Anywhere Please contact for pricing

y TelaAtlas North America

Included 20


Please contact for pricing

Multiple vendors used globally

$120 80


n/a varies n/a dependent on customer

StreetSync Basic $99 per month y NAVTEQ $125 hr, if requested

Unnecessary

StreetSync Desktop < $10,000 - Call for info

y NAVTEQ $125 hr, if requested

Unnecessary

TruckStops $9500 Mappoint. PC*Miler as add-on.

Included in Support cost

Varies 24-48 hours

TruckStops (UK) Please contact Mapmechanics

Geoconcept Please contact Mapmechanics

Varies greatly, please contact

WebSTARS 5.2 call y Chicago Map $ 100 4 hours


Product

GIS Capabilities

Displays routes & stops on maps

Can edit routes with drag & drop

Geocodes stops from addresses

Accellos One Optimize y y y

Direct Route y y y

DISC y y y

DRTraCK y y y

IBM ILOG Transportation Analyst y y y

JOpt.AAS

JOpt.SDK

MOBi y y y


Optrak y y y

ORTEC Transport and Distribution y y y


y y y

PlanOp y y


REACT y y y

Roadnet Anywhere y y y

Roadnet Transportation Suite y y y

Route Planning Suite y y y


StreetSync Desktop y y y

TruckStops y y y

TruckStops (UK) y y y

WebSTARS 5.2 y y


Product

Solution Algorithm

Does System Accept Soft Time Windows?

If so, how are Soft Time Windows Specified?

Accellos One Optimize y Time Range

Direct Route y application of +/- buffers and/or h

DISC y Configurable rules

DRTraCK y from Direct Route

IBM ILOG Transportation Analyst y penalties applied for early/late

JOpt.AAS y soft time windows are default

JOpt.SDK y timewindows are fuzzy per default

MOBi y Configurable rules

Mobile Asset Route Optimization y Target time with allowable window

Optrak

ORTEC Transport and Distribution y x min flexib; quadratic cost function


y Specify "flex" time per window

PlanOp


REACT y Configurable rules

Roadnet Anywhere y Time window factors

Roadnet Transportation Suite y Time window factors

Route Planning Suite y soft time windows

StreetSync Basic

StreetSync Desktop

TruckStops

TruckStops (UK)

WebSTARS 5.2 y allowable delay time


Product

Product is available as part of a suite that provides

On-board electronic display

Wireless messaging to driver

Real-time vehicle tracking

Bar-code scanner

Supply chain management software (e.g., inventory management)

Customer order processing

Computer aided dispatch for police, fire or emergency vehicles


y y y y y

Direct Route y y

DISC y y y y y y

DRTraCK y y y


y

JOpt.AAS

JOpt.SDK

MOBi y y y y y y y


y y y y y y

Optrak y y y


y y y y y


y y

PlanOp


REACT y y y y y y

Roadnet Anywhere

y y y


y y y y


y y y y y y


StreetSync Desktop

y y y

TruckStops

TruckStops (UK) y y y y

WebSTARS 5.2 y y y


Product

Features

Assigns individual drivers

Turn-by-turn route instructions

Automatic forecasts of delivery

Load manifests

Loading plan for truckload

Weather forecast information displayed

ETA automatically sent to the customer


y y y y y

Direct Route y y y y y y

DISC y y y y y y

DRTraCK y y y y y y


JOpt.AAS y

JOpt.SDK y

MOBi y y y y y y


y y y

Optrak y y y y y


y y y y y y


y y y y

PlanOp y y y


y

REACT y y y y y y

Roadnet Anywhere

y y y y y


y y y y y y


y y y y y y y

StreetSync Basic y y y y y

StreetSync Desktop

y y y y y

TruckStops y y y y y


WebSTARS 5.2 y y y y


Product

Types of fleets that currently use this product

Local pick-up and delivery

Long-haul less than truckload

Long-haul truckload Courier Buses Taxis

Service fleets

Emergency services (police, fire, etc.)

Accellos One Optimize y y y y y y

Direct Route y y y y y y

DISC y y y y y y y

DRTraCK y y y y y y


y y y

JOpt.AAS y y y y y y y

JOpt.SDK y y y y y y y

MOBi y y y y y


y

Optrak y y y


y y y y y y y y


y y y y

PlanOp y y y y


REACT y y y y y y y

Roadnet Anywhere y y y y y


y y y y y

Route Planning Suite y y y y y y y y

StreetSync Basic y y y y

StreetSync Desktop y y y y y

TruckStops y y y y y


WebSTARS 5.2 y y y y y y


Product Other special features Recent innovations in system

Accellos One Optimize Integration with Maptuit real-time, commercial, turn-by-turn driving directions

New proprietary integration module; for quick, common integrat

Direct Route Full integration with multiple on-board devices of all types

DISC Integrated warehouse planning and driver shift optimisation.

Container scheduling and trunking models added.

DRTraCK linked to Direct Route Multiple OBD types in same fleet


JOpt.AAS SOAP WebService JOpt.AAS is a SOAP WebService which allows for integration wi

JOpt.SDK ¬€genetic algorithm supported by domain specific contruction algorithms

domain specific algorithm cope with special requirements such as human transportation

MOBi Mobile workforce optimisation. Strategic territory assignment


FreshStart offering is an engine designed to be integrated with dispatch platforms

FreshStart route & dispatch opt API to be available to third party dispatch platforms

Optrak Multi-compartmented tankers Optrak Realisation includes analysis, reporting, alerting tools and vehicle tracking


multi user, multi site software


Single/multi-site/integrated fleets pl Link with truck tracking = actual movements tracked against th

PlanOp Customisable route costing, advanced product combination constraints and more

Integration of Open Source mapping tools providing high-quality, low-cost map support


QMms is a tool to teach the concepts of routing

n/a

REACT Integrated dispatching and real-time scheduling solution.

Real-time yard management.

Roadnet Anywhere Web-based easy to use daily routing and GPS tracking application

Web-enabled application with integration of historical traffic and commercial roads

Roadnet Transportation Suite Includes strategic planning, daily ro Integration of historical traffic, commerical road restrictions, CO2 emission calc

Route Planning Suite Integration of purchase transportation, enterprise class web native architecture, abi

Synchronization of deliveries with sales and merchandising oper

StreetSync Basic Web-based subscription routing system. One-click import and export.

Integration with commercial Garmin andTomTom devices.

StreetSync Desktop Integrated customer database. One-click import and export.

Integration with commercial Garmin andTomTom devices.

TruckStops Extensive special equipment coding

TruckStops (UK) Speeds by Time of Day and Vehicle Type

WebSTARS 5.2 integration of onlien GIS, available as SaaS


Product

Has your routing software been integrated with either cell phone or PDA technology? Describe the application:

Have you developed other software innovations, such as use of social networking for information sharing? Describe:

Accellos One Optimize Yes. Cell phones, black boxes, various MDTs. Full suite of Supply Chain Execution software and solutions

Direct Route Yes, through DRTrack for both route information and tracking

DISC Yes. Please see our MOBi toolset.

DRTraCK Yes - delivery and service


No No

JOpt.AAS no

JOpt.SDK

MOBi POD and mobile data capture tools are integrated.


Integration with PDA devices for real-time P&D confirmation and enroute GPS updates

Optrak Supports signature capture, real-time billing, for waste collection, forestry, etc

n/a


yes no


Paragon can be linked with satellite navigation & proof of delivery technology

Paragon multi-tripping function optimizes resources in double-dispatched operations

PlanOp


No No

REACT Yes. Please see our MOBi toolset.

Roadnet Anywhere Yes - enables paperless office, GPS tracking, proactive service failures


Yes - enables paperless office, GPS tracking, proactive service failures

Release of multiple web-based reporting tools for daily and historical analysis

Route Planning Suite Integration with GPS enabled cell phones, windows mobile enabled d

networked applications

StreetSync Basic Integration with Garmin and TomTom devices. Advanced integration with TomTomWork.

StreetSync Desktop Integration with Garmin and TomTom devices. Advanced integration with TomTomWork.

TruckStops

TruckStops (UK)

WebSTARS 5.2 Cell phones with GPS can be integrated


ProductNumber of Companies Using Software Most Significant Installations

Accellos One Optimize 1001+ Boston Beer, Gold Medal Bakery, Piggly Wiggly

Direct Route 1001+ Multiple fortune 100/8 of top 10 Logi

DISC 1001+ Our systems are used by many high profile organisations and household names.

DRTraCK 101-500 Multiple national retail chains


1-100 contact IBM

JOpt.AAS 1001+ New York Department of Health, Roland Berger Transport Consulting, Kinetix Wireless (Canada), Akquinet (Poland), BOC Gases

JOpt.SDK 1001+ New York Department of Health, Roland Berger Transport Consulting, Kinetix Wireless (Canada), Akquinet (Poland), BOC Gases

MOBi 101-500 Our systems are used by many high profile organisations and household names.


1-100

Optrak 1-100 Menzies Distribution, Reynolds Logisti


101-500 Tesco, Ahold, Hermes Logistics, Offergeld, Toll, De Rijke


101-500 Airgas; McLane Company; CEVA; Exel Logistics; Toyota Material Handling; National Food Corporation; Red Ball Oxygen; Ryder

PlanOp 1-100 Australia Post, Purolator Courier, Sc


1-100

REACT 101-500 Our systems are used by many high profile organisations and household names.

Roadnet Anywhere 101-500 Otis Spunkmeyer, Goodness Greeness, Lion Plumbing, Oxygen One

Roadnet Transportation Suite 1001+ Anheuser-Busch, Office Depot, Sysco, Mohawk Industries, Apria Healthcare

Route Planning Suite n/a

StreetSync Basic 101-500 Walco International Inc, Arca Incorpo

StreetSync Desktop 101-500 Navteq, Coca-Cola Enterprises, Cintas, Duncan Telcom

TruckStops 1001+

TruckStops (UK) 1001+

WebSTARS 5.2 1-100 Nihon oil with 70 sites


ProductWhat is the largest change in the industry over the last two years?

What do you expect to be the biggest change in the next two years?


Direct Route Drive toward reduced miles Return of driver shortages

DISC

DRTraCK Focus on reduced overall costs return to focus on driver shortages


JOpt.AAS please refer to JOpt.SDK please refer to JOpt.SDK

JOpt.SDK Companies are looking for solutions that can be integrated into their existing system landscape. Ideally this can be done by a programming interface that gives enough flexibility to adopt the solution to specific problem domains

Integration capabilities of third party optimization features will become more and more important to ISVs that are already offering branch specific software suites without their own optimization algorithms.

MOBi


Availability of ITS systems and associated rich real-time data that can be leveraged to improve and automate decision process in real-time. Emerging green initiatives have added another dimension to cost cutting and process/quality control benefits of route optimization software.

Ability to leverage the recently available real-time data to respond optimally and in real-time to changing demand, supply, and traffic/road conditions. Enhanced visibility up and down the supply chain enables greater consideration of vehicle positioning. Economic rebound stimulates companies to leverage enhanced visibility and control offered by ITS enabled route optimization to develop new demand/response routing business models.

Optrak Customers are looking for real-time management information and real-time reporting.

There will be a continued focus on exploiting real-time management and reporting to enable a more flexible and agile transport operation.


The industry is slowly moving from static to dynamic to execution and from decentral local optimization to a more centralized approach.

The biggest change will be a horizontal collaboration, inventory management and routing.


Integration of routing and scheduling software with GPS vehicle tracking technology, allowing

The integration of resource allocation into the routing and scheduling process for a plan that takes account of driver, tractor and trailer availability. Advanced resource-managed planning of this kind compiles data abo

PlanOp


REACT

Roadnet Anywhere

More fleets are becoming incredibly sophisiticated -- from the very small to the large, all want to introduce more technology to make them more efficient and increase productivity.

Continued integration with web services, higher demands for real-time information as routes are being created and executed, enterprise visibility and alignment with larger corporate initiatives such as green iniatives.


Convergence of technologies and openess of multiple systems to work together. This enables all business processes to be examined and understand how one part of the process affects the other - e.g. sales on distribution.

Telematics will become a must have for many fleets incorporating the best of productivity, fleet health, risk management and compliance.


Integration of mobile solutions with real-time route planning.

The consolidation of the routing market and disappearance of smaller routing vendors.

StreetSync Basic

StreetSync Desktop

TruckStops More integration with web.

TruckStops (UK)

WebSTARS 5.2 on-time delivery, information sharing SaaS becomes more common

Vehicle Routing Software SurveyVendor Directory

Appian Logistics Software, Inc.10317 Greenbriar Place, Suite 100Oklahoma City, OK 73159 USAPhone: 866-288-0789Fax: 405-692-1698Email: [email protected]

Descartes Systems Group120 Randall DriveWaterloo, Ontario N2V 1C6 CanadaPhone: 519-746-8110Fax: 1-519-747-0082Email: [email protected]

DNA Evolutions - DistributedNatural Algorithms GmbHBei der Laug 56Ulm, Germany 89081Phone: 004973166885Email: [email protected]

FreshStart Logistics1700 7th Avenue, Suite 2100Seattle, WA 98101 USAPhone: 206-465-5767Fax: 206-357-8401Email: [email protected]

IBM1 New Orchard RoadArmonk, New York 10504 USAPhone: 914-499-1900www.ibm.com

Jeppesen, a Boeing Company55 Inverness Drive EastEnglewood, CO 80112-5498 USAPhone: 303-799-9090Email: [email protected]

MapmechanicsCanal Court, 155 High St.Brentford TW8 8JA UKPhone: +44 (0) 20 8568 7000Fax: +44 (0) 20 8568 7400Email: [email protected]

MicroAnalytics2009 14th St N, Suite 302Arlington, VA 22201 USAPhone: 703-841-0414Fax: 703-527-1693Email: [email protected]

MJC233 Wellington Business ParkCrowthorneBerkshire RG45 6LS UKPhone: +44 1344 760000Email: [email protected]/Frameset_products_distribution.htmwww.mjc2.com/Frameset_products_wireless.htmwww.mjc2.com/Frameset_products_realtime.htm

Optrak Distribution Software LtdOrland House, Mead LaneHertford SG13 7AT EnglandPhone: 01992517100Fax: 0207 117 3347Email: [email protected]

ORTECGroningenweg 6kGoudaZuid Holland2803PVThe NetherlandsPhone: +31 182 540 500Fax: +31 182 540 540E-mail: [email protected]/vrd

Paragon Software Systems, Inc.14001 N Dallas Parkway, Suite 1200Dallas, TX 75240 USAPhone: 972-934-6755Email: [email protected]

Prophesy Transportation Solutions, an Accellos Company204-C West Newberry RoadBloomfield, CT 06002 USAPhone: 800-776-6706Fax: 860-243-2619Email: [email protected]

QuantMethods9644 Oak Meadow Lane, Suite 100Pilot Point, TX 76258 USAPhone: 940-231-1949Email: [email protected]

RouteSolutions3740 Boyd Ave, Suite 127San Diego, CA 92111 USAPhone: 858-541-2738Fax: 800-293-2815Email: [email protected]

SAITECH, Inc.PO Box 431Holmdel, NJ 07733 USAPhone: 908-513-9815Fax: 732-444-5911Email: [email protected]

UPS Logistics Technolgies849 Fairmount Avenue, Suite 400

Baltimore, MD 21286 USAPhone: 410-847-1900Fax: 410-847-6246Email: [email protected]

Vehicle Routing Software Survey

On the Road to Connectivity

Creative integration of computer, communication and location technologies help a wide range of industries thrive in difficult times.

By Janice Partyka and Randolph Hall

Since our 2008 routing software survey, the world has suffered through a financial collapse unlike any since the 1920s. Sinking home values, overseas wars, terrorism, threats of global warming and turmoil in health care have capped a decade that many would prefer to forget. As we look forward, the global financial disaster has taught us one thing: simply moving money from account to account does not produce prosperity. Instead, our well-being depends on building economic activities that deliver goods and services to real people, when and where they need them.

Routing software companies are offering creative ways to integrate computer, communication and location technologies with algorithms and software, helping a wide range of industries thrive in a period of recovery. These technologies enable routing software companies to provide sophisticated connectivity and productivity tools to an increasingly mobile workforce and widely distributed customers.

Technological Foundations

When this series of routing articles began more than a decade ago, cell phones were for the rich, map databases were still being developed and GPS-enabled navigation was beyond the average consumer. Routing software worked well, but it wasn't flexible and relied on an imperfect platform, making it difficult for the drivers to access information on the road, and sometimes creating a mismatch between the route that drivers were directed to follow and what they knew to be the best course.

According to Cyndi Brandt of UPS Logistics Technologies, "new data sources have recently become available, including a more complete commercial roads database, and true historical traffic data based on real travel times." Chris Jones of Descartes Systems Group also notes an "explosion of map data attributes and capabilities." In the next year or two, we will have predictive travel speeds for road segments down to 15-minute intervals. "Currently, drivers say

the software doesn't know everything that they know about the routes. It is sometimes true now, but won't be that way in the future," says Jones.

Likewise, we are now seeing stronger connectivity between routing software's traditional functions — that of assigning stops to drivers and placing them in an optimal sequence — with on-the-road navigation. A computer-generated printout listing turn-by-turn directions is becoming more of an anachronism these days, when so many drivers can receive voice commands and dynamic map displays from their phones or navigation devices. As Jones of Descartes notes, "Customers and prospects are really looking for combined solutions" that both route and navigate. "The big growth market is in the portable market," he continues. "You see fleets that would have never gotten GPS technology now using it with a mobile phone."

According to Julian Stephens of MJC2, "Smart phones are changing the industry in a big way because they allow real-time data capture, which in turn enables real-time re-optimization of the operation. This is of particular interest to us because our dynamic scheduling algorithms can make use of these data to increase operational efficiency of mobile workforces." With this type of on-the-road connectivity, MJC2 and other routing software companies are investing in their real-time routing features and algorithms.

Software as a Service

According to Greg Wieitholter of Route Solutions, "Desktop-based routing is going away." Instead, "people want Web-based solutions, so all parts of the organization can have visibility." This is now often accomplished through the Software as a Service (SaaS) model, whereby the software vendor generates solutions and manages data from their own servers. Alternatively, MJC2, for instance, has found that "many customers prefer to host the software themselves as this gives them more control and flexibility."

SaaS is changing the financial model of some software companies. As Chris Jones of Descartes notes, "SaaS is the way the industry has headed. It means that customers 'pay as they go.' It reduces the initial payment of the customer and removes a barrier to entry." UPS has a SaaS offering aimed at smaller fleets, which treat the software costs like utility charges rather than an up-front capitalization.

For the software companies themselves, their cash flows are changing from the initial large balloon payment and lower maintenance fees that come from purchase of licenses to more continuous income flows. For some, the switch is a difficult financial transition that requires cash reserves. However, many routing companies have found ongoing support financially challenging under the license model.

The Business of Routing

Many of the routing companies predict that consolidation in the industry is likely to accelerate and that companies "run by mathematicians" will be unsuccessful. Customers are looking for stability and distribution system expertise more than the latest algorithms. Nevertheless, one of

the challenges that all of these companies will face is the ability to process data to re-optimize routes in real-time. With map data getting richer and real-time traffic adding road segment data in small time intervals, the processing requirements will grow substantially. The underlying architecture of these offerings and how the processing is distributed will be a critical factor in how well each product fares.

Expansion into New Industries

Routing software is being used in an increasingly diverse set of industries, both in traditional truck pick-up and delivery as well as in mobile services, such as repair crews. Among Descarte's customers, "Sleepy's Mattress Stores" uses routing software to schedule deliveries on the spot at point-of-sale, within one-hour time windows. At Appian Logistics Software, it is being used to synchronize trucks and plumbers so that icemakers can be installed soon after a refrigerator is rolled in the door. Route Solutions' customers are using routing software to schedule multitudes of merchandisers and installers, who travel among retail outlets to install product displays and signage.

One clear trend is that the companies that use routing software increasingly want to offer services that set them apart from their competition, and these services demand both faster solution times and improved communication — frequently generating new solutions on the spot. However, given the tough economy, cost remains an important driver. While desirable to route the same drivers to the same customers each and every day, that level of consistency can be inefficient. As Hugh Gigante of Appian notes, "If we tell a customer that it costs them $100 a day to keep the same drivers servicing the same customers, most fleets will decide it isn't worth the cost." Instead, routes can be continuously re-optimized so that every vehicle is used to its max. "Defining features now are anything that reduces windshield time, saves gas and decreases wear and tear on trucks," concludes Gigante. And trucks need to be full.

Basic Software Features

The routing software surveyed in this article provide a common set of basic capabilities:

geocoding addresses, i.e., locating the latitude and longitude by matching the address against data contained in a digital map database;

determining the best paths through street networks between pairs of geocoded points;

solving vehicle routing problems, entailing an assignment of stops to routes and terminals, sequencing stops and routing vehicles between pairs of stops; and

displaying the results in both graphical and tabular forms in such a way that dispatchers can guide the solution process and communicate results to drivers, loaders and other personnel.

Applications differ somewhat according to their target market, special features and integration capabilities, as discussed in the following section.

This Year's Survey

Sixteen software vendors (12 North American and four from Europe) participated in this year's survey, representing 22 products. Our questionnaire was divided into sections covering platform, algorithmic capabilities, interfaces and features, applications, system integration and background information. All responses are self-reported and unverified.

Platform. Windows remains the dominant platform for routing software and is available for nearly all software packages, with only one company offering a Mac version of their software, and another three in Linux and Unix. Fourteen products are available in SaaS, two of which are only available in SaaS. From a hardware perspective, vendors generally recommend a high-end PC operating in the 3 GHz range, combined with 1 to 4 Gb of memory and up to 100 Gb in hard disk space (much less if SaaS is used). These figures have not changed much in the last four years, again showing that powerful routing software has become easier to run on one's desktop computer. In SaaS applications, computing requirements are even smaller than in the past.

Algorithmic capabilities. The algorithms underlying routing products are generally proprietary, though typically involve a combination of integer programming methods and heuristics. QuantMethods and Jeppesen were more specific, respectively stating that linear programming/branch-and-bound and column generation were used. FreshStart Logistics, new to this year's survey, indicated that their algorithms are based on artificial intelligence and expert system approaches, rather than traditional mathematical programming. DNA Evolutions' response of "construction and improvement" is likely representative of the general class of heuristic methods used by most routing vendors.

Vendors generally claim unlimited problem size for their software, but from a practical perspective, computation time, memory size and disk space bound product performance, so it is important to test software on actual problems. In this regard, most vendors claim computation times in the one-to-five-minute range for an average-sized problem, described as the time to solve a problem with 50 routes, 1,000 stops and two-hour hard-time windows. (Keep in mind that computation times are provided by the vendors and have not been verified.) These times are similar to two years ago.

Fast computation times are particularly important in real-time applications, such as when deliveries are scheduled while the customer is on the phone or when stops are inserted and scheduled while vehicles are in the field. Researchers in vehicle routing are well aware that route-length approximations can be very effective at producing good solutions in a short amount

of time. This year, vendors were tight lipped about use of approximations.

Node routing is the capability to assign and sequence discrete stops, and arc routing is the capability to assign and sequence street segments. The former is needed most often, and occurs when the driver visits 100 or fewer locations per day. We believe it is available on all products. Arc routing is more specialized and occurs when vehicles visit every (or most) address on block segments, as in meter reading, mail delivery and garbage pickup. Most of the vendors claim they can do both of these, along with real-time routing, daily routing and route planning. However, a single routing package is unlikely to be adept at all of these functions, and it is important to select a vendor that has experience in the planned application.

More than half of the products offer some capability for real-time routing, which could come in the form of real-time re-routing of vehicles or real-time stop scheduling. Six vendors (Appian, Descartes, FreshStart Logistics, MJC2, SAITECH and UPS Logistics) have the ability to incorporate real-time traffic, which is now more widely available in major cities. This can enable a fleet to reschedule in response to customer requirements, vehicle delays or traffic conditions.

Most vendors claim the ability to solve routing problems with soft time windows. However, when asked for specifics, some simply indicate that they represent a range of time or maximum allowed delay rather than a true soft window approach. On the other hand, IBM ILOG permits early and late penalties, DNA Evolution windows are "fuzzy by default" and MJC2 uses "configurable rules."

Interfaces and features. As a starting point, basic features offered by most include an ability to display routes and stops on maps and edit these routes with the "drag-and-drop" feature (i.e., click on a stop and move it to whichever route you desire). This enables the dispatcher to modify the algorithm-produced routes and is needed in practice to satisfy customer constraints. To make these features work, products need digital maps, such as the commercial products from NAVTEQ (based in the United States) and Tele Atlas (based in Europe). Maps, which are not inexpensive, are often sold separately and are chosen by customers according to their requirements.

Integration. Real-time communication with drivers, as well as tracking their locations, has become particularly important, and most products offer these features. This usually is provided with vehicle-mounted devices or mobile phones. Interfaces with other software systems — such as order-entry and inventory management — is also important for retailers and distributors. Other important features include forecasts for delivery requirements, generation of load manifests and load planning.

Applications. Whereas vendors generally claim that their products are designed to serve a broad range of applications, most specialize in an industry sector. Specialization is largely driven by

interface requirements — both in terms of presenting information in a manner that is useful to the target user and in terms of interfacing with business software systems and hardware devices. Police, taxi and emergency vehicle dispatch, for instance, each demand special requirements that differ from the traditional market of private fleets. They fall in the realm of niche markets, even though in theory they are just variations of vehicle routing.

Vendors that are more experienced in an industry will be better prepared to consult on software installation and more likely to have relevant features, leading to a higher likelihood of success. The optimization code might also be different to account for the particular network structure, for instance the hub-and-spoke design of less-than-truckload (LTL) networks.

In our survey, most of the respondents have specialized in private truck fleets, serving such markets as food and beverage (e.g., Anheuser Busch, Coca Cola and Gold Medal Bakery). Jeppesen's PlanOp is being used by for-hire fleets, such as Australia Post and Purolator Courier.

Routing installations tend to require a large degree of customization, as reflected in software prices, which often runs in the tens of thousands of dollars. As an alternative, SaaS provides routing services for a monthly fee, perhaps as low as $99 per month. Beyond these software costs, some level of consulting is likely needed to ensure full integration into a fleet's information systems, typically priced in the neighborhood of $125 per hour. In terms of pure size, many companies now claim more than 1,000 installations each.

General information. The accompanying directory provides contact information and product names for the vendors. Pricing is available for some vendors (in many cases, prices are negotiable and depend on fleet size). Expect to pay $10,000 or more for the software alone. Higher-priced products generally offer more customized service, a larger array of features and interface capabilities, and specialized experience in a particular industry. Price structures do vary, so be sure to compare the full installed cost before making a choice, including license fees, installation and maintenance costs, hardware and digital maps.

Selecting a Product

Before purchasing a product, fleet managers should first assess the degree to which routing solutions and data must be integrated across multiple sites and decide whether they would like adopt the SaaS model or host their own software. It also important to ask questions such as: How big of a problem will be solved, measured in vehicles, stops and terminals? How frequently will the solution be updated, and how quickly must the software generate a solution? Can stops be scheduled on the spot, or will they be generated in batches? Who will use the software, how is the information best presented to the user, and are the users distributed among many locations? Who will install and maintain the software? With which software systems must the routing

system interact? Vendors should demonstrate that they are experienced serving other fleets with similar requirements, and they should provide references so that you can verify claims.

Janice Partyka ([email protected]) is principal of JGP Services, a marketing consulting practice that focuses on mobile technologies and applications. Randolph Hall ([email protected]) is vice provost for Research Advancement at the University of Southern California.

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