Route Optimization with Excel: Free Template

reading time : 2 min

Picture of Lucie Monnot
Lucie Monnot

Content Marketing Manager

Reducing costs is essential for any business: it increases your profit margin and improves your profitability. This is one of the many benefits of route optimization. In this guide, we present a simple and cost-effective solution: Excel. Thanks to its many features, Excel can help you:
  • Reduce your costs
  • Optimize your available resources

Table of Contents

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What is route optimization?

Route optimization, also known as route planning or optimal routing, is a process designed to determine the best sequence of journeys for a given set of destinations.
The primary objective of route optimization is to reduce costs, optimize resource utilization and improve the efficiency of delivery, service and field intervention operations.
In practical terms, route optimization involves organizing the stops or stages of a route in a way that minimizes distance traveled, travel time and associated costs, while respecting specific constraints and requirements. These constraints may include delivery deadlines, time windows, loading capacities, priorities or specific customer preferences.
The result is an optimized route that makes it possible to complete tasks efficiently and cost-effectively.
It is also possible to optimize routes with Excel for free. But why use Excel?

Why use Excel for route optimization?

Excel is widely used for route optimization because of its powerful features and ease of use.
Excel offers a high degree of flexibility for modeling and solving route optimization problems. You can create customized spreadsheets using formulas and functions tailored to your company’s specific needs. This makes it easy to adapt and adjust optimization models according to your business constraints and objectives.
Excel is commonly used in many organizations, which means that most employees are familiar with its interface and basic features

There is no need to learn a complex new tool. Excel is also available on most computers and is often included in 
Excel includes built-in features, such as Solver and analysis tools, that can be used to address route optimization problems. Analysis tools, including pivot tables, charts and statistical functions, can also be used to analyze data and make informed decisions.

 

Route optimization often involves managing and analyzing large amounts of data, including customer addresses, schedules and distances. Excel makes it possible to manage this data efficiently using sorting, filtering and lookup functions. Excel also makes it easy to import and export data from other sources, facilitating integration with other management systems.
 
Compared with more advanced optimization tools, Excel provides an affordable solution for route optimization. Since many companies already have Excel installed on their computers, there is no additional cost associated with purchasing a new tool.
Our solution: TourSolver
Nomadia offers a solution to optimize your routes and improve the way your employees work.

Steps for free route optimization with Excel

As you can see, route optimization is essential for saving time and resources when carrying out multiple stops or deliveries. Here are the different steps involved in optimizing routes with Excel for free.
  • Collect the data: Start by gathering the information required to plan your route, including the addresses of the locations to visit, availability times, distances between points and any other specific constraints or criteria.
  • Prepare the data in Excel: Create an Excel spreadsheet and organize your data into separate columns. Assign each piece of information to a specific cell. For example, you could use one column for addresses, another for schedules and another for distances.
  • Calculate distances: Use an appropriate Excel formula or function to calculate the distances between the different addresses. You can use online mapping services to obtain this information and then enter it into your spreadsheet.
  • Define constraints: If you have specific constraints, such as opening hours or time windows for visits, add this information to your spreadsheet. You can use Excel formulas to define these constraints and incorporate them into the subsequent route optimization process.
  • Use an optimization algorithm: Excel offers features that can help identify optimal solutions for routing problems. Use functions and methods such as combination searches, scheduling or shortest-path calculations to optimize your route according to the criteria you have defined.
  • Visualize the results: Once you have optimized your route, you can represent the results visually using charts or maps. This will allow you to visualize the optimal order of your stops and check whether the constraints have been met.

Route optimization with Excel: our tips

Although specialized software is available for this task, you can start optimizing your routes with Excel. Here are some tips to help you get started.
  • Use formulas: Excel offers powerful calculation features. Use formulas to calculate distances between points, travel times, fuel costs or any other metrics relevant to your business. You can also use lookup functions to sort addresses according to their geographical proximity.
  • Optimize routes: Use formulas and functions to develop a route optimization algorithm. For example, you can use a nearest-neighbor search to determine the best order for visiting addresses, or dynamic programming to identify the best route sequence.
  • Visualize the results: Use charts or dashboards to visualize the results of your optimized routes. This will help you better understand the performance of your planning and identify areas for improvement.
  • Reassess regularly: Route planning is a dynamic process. Reassess and update your data regularly to account for changes in addresses, schedules or capacity constraints. Rerun your optimization algorithm to adapt your routes accordingly.
  • Experiment and adjust: Do not hesitate to test different approaches and adjust your formulas and algorithms according to your specific needs. Identify the parameters that work best for your business and continue refining them over time.

Is Excel enough for route planning?

For a small business or relatively simple route planning, Excel can be an affordable and easy-to-use option. However, it is important to note that route planning can become complex as the number of customers, resources and constraints increases. In such cases, Excel may become limited in terms of functionality and automation.
Route planning often involves constraints such as driver availability times, travel times, delivery windows, customer priorities and more. Managing all these constraints effectively using Excel alone can be difficult.
Routes can be optimized to minimize distance traveled, reduce travel times and maximize resource utilization. Excel does not include advanced route optimization algorithms as standard, which means that optimization often has to be performed manually.
Excel can become cumbersome and difficult to visualize when data becomes complex. Managing multiple spreadsheets and columns can be time-consuming. In addition, sharing planning information with drivers or other team members can be more complicated when using Excel.
To overcome these limitations, it may be worth considering a dedicated field route planning tool. These software solutions offer features specifically designed for route planning, including automatic optimization, constraint management, graphical route visualization and the ability to share information easily with team members.

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