To Build or to Buy? Assessing Route Optimization Software Needs

“To build or not to build?” Or more precisely, “To build or to buy?” That is the question that courier companies face when assessing their route optimization software needs.

On paper, the answer seems simple. Building a proprietary solution in-house gives full control and allows unlimited customization. However, the reality is it isn't easy nor is it faster or cheaper. Not every company has the resources to pull it off.

Leaning on Ryan’s years of experience talking to last mile courier companies, we’ll explore the challenges of building bespoke software in-house even for large courier services. We also explain why choosing an off-the-shelf route optimization tool could be a better decision for most companies.

Why Does Building Your Own Software Seem So Attractive?

Let’s unpack the main reasons why the idea of building a bespoke route optimization tool in-house is appealing.

Unlimited Customization to Your Unique Needs

Delivery businesses choose to build bespoke software for the customization they need. Different courier companies operate in unique ways, requiring tailor-made solutions.

Complete Control Over the Development Process

Bringing the tool in-house allows you to shape its development timelines and user experience. Hiring an external company can lead to limitations.

Full Ownership of the Software

Once you build the product, you own it, protecting your model from external price hikes or software discontinuation.

Long-term Savings

Many companies consider the initial savings of avoiding subscription fees but often underestimate the costs of maintenance and resources required to build a new software solution.

The Illusion That It’s Easy

Building software is often seen as quick and easy, but the complexity of development is frequently underestimated.

“They say we can do that in two or three days... And as soon as they got into the nitty-gritty, they realized how difficult it is.”

What Does 'Build' Really Mean?

You Need a Skilled Team

You require a diverse range of specialized talent, from product managers to engineers. Complex route optimization requires very specific skill sets.

You Need 18-24 Months to Build and Test the Software

Realistically, building a software solution can take a year and a half or more to fully realize, not accounting for potential delays and unexpected challenges.

You Need Resources to Maintain the Custom-built Solution

Building is just the start; you need ongoing resources to maintain and update the software for continued functionality.

You Need the Infrastructure to Run Your Software

Even if you develop the software, reliance on third-party infrastructure providers for servers and routing can incur additional costs.

Some Couriers Struggle to Build, Some Don’t

Building a route optimization tool usually isn’t viable for local courier companies without substantial engineering resources. Multinational companies may have the resources needed, but regional companies often don’t.

The TMS Trap

Frustration with outdated Transportation Management Systems (TMS) can drive companies towards custom software. Many legacy TMS platforms lack the advanced features required for modern last mile delivery.

When Does Off-the-shelf Last Mile Management Win?

Speed to Value

Implementing a ready-to-use platform like Spoke Dispatch is significantly faster than a custom build.

Functionality Beyond Route Optimization

Last mile solutions offer advanced features that provide competitive advantages such as customer notifications, live tracking, and performance analytics.

Continuous Maintenance

Using third-party platforms offloads the burden of maintenance, with regular updates and improvements handled by the service provider.

Measurable Time and Cost Savings

Implementing an out-of-the-box solution like Spoke Dispatch can yield savings in time and operational efficiency.

Focus on Core Competency

Using high-level, customizable solutions allows courier companies to concentrate on their main business without the complications of software development.

The Courier’s Decision Framework

If you’re still weighing your options between building or buying software, consider these questions:

1. How urgently do you need the software?
2. Do you need more than just basic route optimization?
3. Can the off-the-shelf solution do the job?
4. Do you have the know-how?
5. Do you have the capital to fund the tool development?
6. Do you have the internal resources for development?

Couriers Should Be Free to Focus on What They Do Best

While building a custom platform may seem like a solution, the effort and investment may be unnecessary. Tools specifically for last mile management exist to fill existing gaps without the complications of self-development. When you're a delivery company, consulting a software company for your needs is the simplest route.