What is Territory Cutting?

Master-route planning is a complex logistics industry niche and it can prove tough for a client to buy in to its benefits until each of the main features or functionality areas of a software package have been clarified, or simplified. Here we dive into Territory Cutting.

Territory-based master-route planning, or territory cutting, involves the creation of unique regions on a map for the purposes of a client’s optimal utilisation of resources – whether sales or delivery related; whether staff or vehicles are being tallied up; whether fuel or time are of the essence.

Resources can be wasted if employees, or contractors, find themselves weaving across a territory, region, suburb or city, instead of concentrating their effort on an optimally sized service area – which should ideally be positioned near to where they live (sales) or in the vicinity of the warehouse they collect from (deliveries).
See Sleep-outs for scenarios where remaining in a far-off area, overnight, is more cost-effective for a sales or delivery staff member than returning home that evening.

So: what benefits may you derive, in selecting a master-route package (view features more features, in addition to territory cutting here) that incorporates territory cutting into the mix? Well, firstly, a sense of efficiency is created once set territories are identified. Next up, this territory dividing can be tailored towards any type of business need, as this alters over time; and both sales and delivery costs (fuel, vehicle maintenance, staff numbers) can be streamlined for maximum efficiency and cost-effectiveness. Customers are also likely to receive a better level of service if the sales or delivery person assigned to them is not over-stretched – from a coverage perspective.

Territory cutting is a practice that incorporates a consideration for everything from revenue, volume, frequency and time window, to delivery pattern and geographical location. Changes can be made according to the season and/or demand; and staff members will perform better if they are not overstretched from a coverage-of-ground point of view.

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