ORTEC, a leading provider of advanced analytics and optimization solutions, announced today results of its latest industry survey, revealing that 69% of companies today frequently adjust delivery routes in real-time, illustrating the struggles they have with unexpected delays, with 39% making changes multiple times per day. The findings come at a time when rising transportation costs, increased e-commerce demand, and growing customer expectations are putting immense pressure on supply chains to deliver faster, more efficiently, and with greater precision.

The survey, presented to more than 2,500 logistics, retail, manufacturing, and transportation professionals, highlights that traffic congestion (18%), strict delivery time windows (20%), and vehicle capacity constraints (22%) are the most significant challenges impacting last-mile route optimization. Additionally, nearly half of respondents expressed dissatisfaction with their current route optimization methods, signaling a critical need for more sophisticated solutions.

These challenges are not isolated, as a recent report from the Council of Supply Chain Management Professionals (CSCMP) found that U.S. business logistics costs surged to over $2.3 trillion in 2023, representing a 19.6% increase from the previous year. A large portion of these costs stem from last-mile inefficiencies, which have been exacerbated by labor shortages, fluctuating fuel prices, and unpredictable urban traffic patterns. ORTEC’s survey findings reinforce this broader industry trend, showing that inefficient routing is driving up operational costs for many companies.

The impact of these inefficiencies extends beyond cost concerns. According to ORTEC’s survey, 40% of respondents reported that between 6%-20% of their deliveries arrive outside the promised time window due to route planning issues, affecting customer satisfaction and brand reputation. Moreover, 22% of companies identified inefficient routing leading to excess mileage as a primary factor increasing delivery costs.

Despite these challenges, companies are increasingly looking to technology for solutions. ORTEC’s survey found that while 25% of companies have successfully implemented AI-powered route optimization, an additional 30% are either in the process of adopting or planning to implement these solutions in the near future. However, 12% of respondents indicated that dynamic rerouting capabilities remain a key area for improvement, suggesting that many existing solutions are not fully addressing the real-time complexities of last-mile delivery.

“The ability to set an effective strategy and create optimized standards that minimize real-time chaos while balancing cost efficiency and delivery accuracy is no longer a luxury—it’s a necessity in today’s fast-moving logistics environment,” said Mat Witte, CEO of ORTEC Americas. “ORTEC is committed to helping companies optimize their delivery strategies with cutting-edge technology that enhances accuracy, improves consistency, reduces costs, and improves customer satisfaction.” 

As businesses continue to face growing pressures for cost-efficient and on-time deliveries, ORTEC’s suite of data-driven routing solutions is designed to help them navigate these challenges effectively. ORTEC empowers organizations to make smarter routing decisions and ensure deliveries arrive on time, every time, by leveraging AI, real-time data analytics, and automation.

For more information on ORTEC’s routing optimization solutions, please visit www.ortec.com.