[REPORT]
What route optimization to meet the challenges of the parcel delivery industry?
In the parcel delivery industry, route performance relies on good sectorization. This distribution of territory among drivers is crucial to ensure a balanced workload, minimize distances traveled, and reduce costs.
However, traditional solutions, often based on standardized divisions, fail to consider ground-level constraints, leading to inefficient and costly routes.
At Kardinal, we’ve developed an intelligent sectorization approach that builds sectors based on local realities, simplifying route organization and enhancing operational performance.
Working conditions under pressure
The delivery profession is under immense pressure: tight deadlines, complex routes, seasonal peaks… As a result, turnover soars: a major postal operator in the U.S. reached 59 % in 2022, up from 38.5% in 2019.
Training new drivers becomes a constant challenge, especially when sectors are poorly defined. Incoherent or poorly balanced zones slow down their performance development, lengthen routes, and degrade service quality.
These difficulties are heightened during peak seasons: Amazon hired over 8,000 seasonal workers in France alone in 2024. In this context, companies need modern sectorization solutions that adapt to the field and accelerate driver skill development.
The limitations of traditional sectorization solutions
Most sectorization tools use clustering algorithms to group deliveries into cells (or micro-zones), primarily based on geographic criteria.
But this standard approach overlooks the realities on the field. The result:
Incoherent zoning: sectors cut across impassable routes (highways, rivers), forcing drivers to take detours or make unnecessary U-turns.
Inadequate sector size: By relying solely on average delivery volumes, these tools overlook key factors like travel time, parking, and urban density, leading to an unbalanced workload distribution.
Kardinal's approach: sectorization designed for field experts
At Kardinal, we’ve spent years in R&D and collaborated with industry experts to develop an approach that combines mathematical optimization with real-world logic. Our solution is based on key principles:
Respect for real geography: our cells follow major roads and account for natural and urban obstacles to ensure smooth routes without unnecessary detours.
Integration of travel time and parking: we don’t just distribute delivery volumes; we model actual work times to adjust the size and shape of sectors.
Sectorization tailored to the real world: our algorithms consider local constraints and road-specificities to ensure optimal routes.
💡 A real-world case
In a real case, Kardinal’s algorithm optimized a route by following the docks in the city of Marseille, never crossing east of a major road. Why? Because the passage points were rare and significantly lengthened the drivers’ journey. A classic clustering algorithm would have ignored this constraint, creating an unsuitable sector and, therefore, an unfeasible route.
The impact of this approach is tangible for planners and drivers. Our sectorization allows:
Shorter, more efficient routes, with fewer detours and unnecessary U-turns.
Better team buy-in, thanks to a more logical and intuitive organization.
Increased productivity, by reducing time wasted on the road and issues caused by poorly adapted sectorization.
This intelligent sectorization is at the heart of the TAO (Territory Analytics & Optimization) algorithms, our solution dedicated to parcel delivery companies and operations. With TAO, sectorization becomes a true strategic lever.
Strategic sectorization solution dedicated to the parcel delivery industry
Want to learn more? Contact us to discover how to transform your delivery routes with intelligent sectorization.