A solution for every size

For waste and recycling haulers looking to automate common routing challenges, route optimization software has been a welcomed solution.

Whether for a small or large fleet, route optimization software offers a comprehensive platform to track fleet efficiency, operating times, parameters for specific accounts and more.

Geoff Aardsma, the Boston-based vice president of professional services, North America, for Ireland-based technology provider AMCS Group, says most haulers looking to invest in routing software are seeking balance across their routes and vehicles, as well as insights into how their businesses can expand.

In the following Q&A with Waste Today, Aardsma shares some of the benefits of route optimization software, as well as key factors to consider when looking to deploy a new system.

Waste Today (WT): What are some factors a business owner should consider when looking to purchase route optimization software?

Geoff Aardsma (GA): With routing software, what we see is that it’s got to be purpose-built for the waste and recycling industry. Our industry has a number of unique and specific practices that are key to the success of the operation. So, generic optimization software just doesn’t cut it. Whether it’s performing right-hand or left-hand-only collections through an automated side loader, or multi-compartment vehicles where you may have waste and single-stream recycling in the same truck, how do you balance those daily challenges?

[We] also look at the strategic challenges our customers face, … such as ‘Where do I open my next facility, make a tuck-in acquisition or bid on a municipal contract? How does that impact my operation?’ The software solution needs to encompass all of those very specific elements [of] our industry.

We also find that the solution needs to have a track record of success and good outcomes. Within our sector, our customers are always looking for evidence of success and credibility, so having that is a really important piece.

WT: What are some of the most common questions asked by customers looking to invest in route optimization software?

GA: They’re looking for ease of replicating their operation. I think everybody in the industry recognizes that they use the same equipment, but they all have their special sauce or specific practices that [give] them a competitive advantage in their market. So, making sure the software can replicate the unique elements within their operation is important. That’s a key part of the selection process [as is] supporting the business practices that … are expected to be handled within the software. So, these would be the parameters or the types of vehicles or routes for the optimization scenarios that they’d be looking to evaluate, [such as wanting] to optimize based on cost [or] around landfill disposal.

Then we find that there’s a balance between a desire to tackle the daily tactical optimization challenges but also model more strategic planning. Topics [such as] bidding on a university or municipal contract, adding a school district into the routes or taking a tuck-in acquisition, what would that do to your fleet? What optimizations could you find? What are the right cost models? Those are a lot of questions that we often find [we’re] being asked in the selection process.

WT: Is there an ideal size or scale to see the best outcome from the investment?

GA: We find that our engagements in route optimization software vary based on the size. So, there’s a right solution for every size fleet.

For example, typically on smaller fleets of less than 20 vehicles, [we] do one-off consultancy-based optimizations where we’re using the software ourselves and offering recommendations to our customers. For larger fleets, typically in that 30-vehicles-plus [range], we find that taking on implementing the software and having a subject matter expert who can use the software within our customer’s business is the right way to go. So, from that perspective, the purchase of [the] software itself and then implementation through a consultancy-based onboarding is a great way to go.

WT: Where do companies typically see a return on investment after deploying route optimization software?

GA: Depending on where our customers are from a current cost baseline, we generally see savings that can go anywhere between 15 and 20 percent, and that comes in terms of fuel savings; distance traveled per route, so extending the life of their current vehicles; driver time, so reduction of overtime or a reduction of total driver time if they’re looking to go to a 40-[hour] workweek or something like that. Generally, [for] municipalities, it’s how we can move to a less than five-day workweek, and then [reduce] wear and tear on the vehicles. So, the overall cost of vehicles, tire replacements, fluid changes and things like that all add up to about that 15 to 20 percent we generally see.

WT: Do you see more interest from the public sector or the private sector? Why?

GA: We see it from both, and often as we see more municipalities going to franchise-type systems, [the agreements] are limiting the competitive nature of doing business in their cities. There’s often requirements that there’s proof of operating in an efficient manner. So, we see it for the same reasons, … municipalities and private businesses are both looking to save on their operating costs, provide more flexible service options to their customers and, overall, [to] decrease the carbon impact of the collection activities.

We also see a lot of pressure as we introduce new types of waste collection. So, adding in food waste collection where you previously had just waste and recycling, putting more trucks on the streets [and] the dividing out of waste. How can we make the better management of materials more operationally efficient from a collection perspective? We see the same motivations from both public and private sector customers.

WT: How important is scalability for the businesses and municipalities using route optimization software?

GA: It’s really important because we’re talking about very large datasets, especially as you get into companies with larger fleets. As you start multiplying, say, 500 residential routes per week, and each of them has 1,000 orders, with all the time parameters and variables that come with it and the geographic spread that you have to consider, we find that the optimization tool has to be able to crunch a large amount of data in a timely fashion while providing accurate results.

It’s an area that we focus on … to prove to our customers that we can handle the scale of the calculations and scenarios that they want to get feedback on.

Geoff Aardsma is vice president of professional services, North America, for Ireland-based AMCS Group. For more information, visit www.amcsgroup.com.