Discovery Brief: Driver Route Optimization

Project: Driver Route Optimization

Status: Discovery - Design

Last Updated: Aug 1, 2025

Owner: @Christy Cocchia-Barbaree

The Problem & Our Current Understanding

PROBLEM: CXT Driver does not currently provide a way for drivers to manually trigger a route optimization on their assigned work, so it depends on office staff to have time to manually run optimization within Operations. Route Optimization rearranges assigned work into the most efficient sequencing and assigns ETAs, so customers and end-users can pre-plan for their incoming deliveries.

In E-commerce and Distribution workflows, where a driver needs to get routed, loaded, and leave the warehouse shortly after the last incoming truck is received, there is not enough time for office staff to manually run optimization for all of the routes that need to go out and they do not have time to go into the office each time a driver has received their last package for their specific route.

Since new packages are being received at the warehouse over several hours and there can be surprise last minute packages, there is not clear-cut criteria on when the route is “complete”. It would be difficult to have an accurate trigger for an automatic route optimization.

In order to work around this issue, some of our customers have their IC driver’s pay for use of a 3rd party route planner app

Falcon drivers use Circuit Route Planner ($20/driver)
Xcel drivers use RoadWarrior ($x/driver)

CURRENT UNDERSTANDING: E-commerce and Distribution carriers can receive work to their warehouse from several customers and trucks over the course of several hours that is then sorted onto routes typically based on the general geographic area of the delivery (frequently by zip codes).

Drivers usually do not start loading their vehicle until all work has been received and sorted into the route areas within the warehouse and frequently, the last truckload of work arrives to the warehouse right before the routes are scheduled to leave. Since CXT customers try to get these packages delivered same day, they hold back their drivers until all work is received.

Drivers need a way to quickly and efficiently optimize all of the stops that got assigned to their route, so they can properly load their vehicle. Drivers that load their vehicle with their stops in sequential order (based on an optimized route’s sequence numbers) are more efficient throughout the day and reduce the risk of missed deliveries.

We currently have the ability for all work to be either manually or automatically re-optimized from within the Operations app, but based on the workflow noted above, we also need to put the power of route optimization into the hands of the drivers, so they never have to wait on office staff to run the optimization for them.

We have already seen that this is high priority for some of our customers due to the amount of time it saves drivers and office staff, but it is also clear by some customers seeking out 3rd party route optimization providers that this is a critical must-have feature.

Target Users & Context

User Role

Type

Primary Needs

Value

Drivers

Primary

Drivers/ICs need a self-serve route optimization option within CXT Driver, so they can quickly optimize their own work into the most efficient routing, get their vehicle loaded, and get on the road.

Drivers/ICs need a way to indicate an end location for the route, so the optimization can put them in the area of choice at the end of the day. The end location address should be optional, but once one is entered, it should be maintained and used with subsequent optimization until cleared out or the address is changed.

Route optimization provides route sequence IDs and ETA information that is critical for fast and accurate loading of one’s vehicle.

This feature can save driver’s 30 to 60 minutes of manual routing time EVERY DAY.

Most drivers are Independent Contractors and the more efficient they are, the more work assignments they can handle and therefore get paid more.

Higher efficiency and higher pay results in happier drivers and increased driver retention.

Drivers can’t wait for warehouse or office staff to manually optimize their work since they may be delays due to time availability.

Including an option for the end location for the route optimization will positively increase the driver experience and satisfaction because it will save them time and money by reducing travel from their last stop to their home or special event.

In-app route optimization saves our customers and drivers money that they are currently spending on 3rd party route planning applications.

Warehouse/Office Staff

Secondary

Currently, Warehouse/Office staff would have to stop what they are doing in order to go to the Operations App and manually trigger route optimization for the drivers whose routes are ready to be loading into their vehicles.

This has proven to be too much effort for some of our customers, so are paying for a 3rd party application to allow drivers to perform the route optimization on their own.

This development would completely remove the need for Warehouse staff to perform these route optimization actions.

Saves time and overhead costs

JTBD

As a carrier manager, I can enable a new Mobile Option Set permission, so I can control whether or not the drivers can initiate basic route optimization from within CXT Driver
As a route driver using CXT Driver, I can manually trigger basic route optimization at any time for my assigned route work, so I can get critical routing info and load my vehicle quickly and in sequential order without having to wait on warehouse staff
As an on-demand driver using CXT Driver, I can manually trigger basic route optimization at any time for my assigned on-demand work, so I can always ensure that I am completing work in the most efficient manner throughout the day as I am getting additional order assignments
As a routed or on-demand driver using CXT Driver, I can have the option to include a static “End Location” for all of my route optimizations, so I can save time and money at the end of the day by being routed towards my location of choice

Current Pains & Impact:

Driver Frustration:
- Without having route optimization in the Driver App, drivers have to manually route themselves which can take up 30 to 60 minutes depending on the amount of work they are assigned
- Manual routing is subject to human error and may cause an unnecessary increase in time and resources
- If drivers have to wait for warehouse/office staff to manually run route optimization for them prior to loading their vehicle, it causes load delays, stop delays, and total route completion delays.
- Without having the option to specify an End Location for the optimization, the routing generated can put the driver far away from their home or family event that they need to go to after completing their day. This can cause them to unnecessarily waste time and money driving across town at the end of their day
Customer Dissatisfaction:
- It takes too much time for a driver to manually route all of their stops and it is not guaranteed to be in an optimal sequence
- Non-optimized routes can cause delivery delays and sometimes completely missed stops if the driver runs out of time before the company closes for the day
- Non-optimized routes do not have generated ETAs, so end-users are not given an estimated time of arrival (ETA)

Current Workarounds:

Drivers wait for a Warehouse worker to manually run route optimization from within the Operations App
Drivers pay for a 3rd party route planner application
- Falcon drivers use Circuit Route Planner ($20/driver)
- Xcel drivers use RoadWarrior ($x/driver)
- Capstone was looking at the possibility of using a 3rd party routing application. Waiting for more info from Rachel on their current usage.

Opportunity

Saves drivers 30 to 60m of manual routing time prior to loading their vehicle
Quicker vehicle load times due to the optimized route sequence information provided to drivers
Allows drivers to run more efficient routes which decreases fuel consumption/cost to driver
Allows drivers to re-optimize whenever necessary to ensure they are completing work in the optimal sequence even when new work is added
Allows drivers to set their preferred end location for the day, so they save time and money from not having to driver across town after their last stop
Allows on-time delivery percentages to be increased that will in turn raise customer satisfaction
Potentially improve the NPS Driver score by 10% by reducing driver frustration and increasing efficiency

Benefits

Increase in driver usage of the CXT Driver application
Increase is customer satisfaction of our mobile application offerings
Removes the need for customers to use 3rd party applications for route optimization

Key Objectives & Success Metrics (FY2025 Q3-Q4)

Driver Load Time Reduction (%)

Definition: Reducing the amount of time needed by a driver to get their route stops sequenced through optimization, load scanned, and all loaded onto their vehicle in the proper order sequence. Current times range from 30 to 60 minutes per route.
Goal: >50% time reduction per route

On-Time Route Performance (%)

Definition: Percentage of routes that were completed on-time that were utilizing the new route optimization feature
Goal: >80% on-time per month

On-Time On-Demand Driver Performance (%)

Definition: Percentage of order that were completed on-time by individual drivers utilizing the new route optimization feature
Goal: >80% on-time per month

Hypotheses & Assumptions

Hypotheses1 : “Implementing a driver-controlled route optimization feature will allow routed drivers to get their route planned into the optimal order and obtain route sequence ID's without relying on others in the warehouse, so they will load their vehicle and get on the road quicker.”

Validation: Compare planning and vehicle load times for drivers with and without utilization of the route optimization feature.

Hypothesis 2:“Implementing a driver-controlled route optimization feature will allow routed drivers to move through their route efficiently and reduce human routing errors that result in delays”

Validation: Compare on-time percentages for routes before and after utilizing the driver-controlled route optimization.

Hypothesis 3:“Implementing a driver-controlled route optimization feature will allow on-demand drivers to properly maintain their routing efficiency after being assigned new work throughout their day”

Validation: Compare on-time percentages for drivers before and after utilizing the driver-controlled route optimization.

Hypothesis 4:“Adding the ability for a driver to set and maintain their own End Location to be used for all of their self-initiated optimizations, will decrease wasted time and money for the driver every day leading to higher job satisfaction. ”

Validation: Monitor App Store, email, and NPS score feedback from Drivers. Possibly generate reports on reduction is route miles driven.

Discovery partners & interested customers

Falcon - This is a requirement for their workflows, so they currently use Circuit Route Planner ($20/driver per month)

Xcel - This is a requirement for their workflows, so they currently use RoadWarrior ($x/driver - NEED TO GET $ INFO FROM TIM)