Every aspect of your supply chain directly impacts your bottom line. The more you can streamline it, the more you can reduce your operational expenses and increase your profits. However, one area often overlooked is transportation optimization. Being more efficient with how you move goods can reduce costs, improve customer satisfaction, and gain an edge over your competition.
Transportation optimization involves strategically analyzing and improving every aspect of your shipping process, from carrier selection to route planning. Let’s take a closer look at how to make your supply chain more efficient and cost-effective than ever.
What Is Transportation Optimization?
Transportation optimization is the process of strategically improving the movement of goods to make it more efficient and cost-effective. It involves assessing every aspect of moving your products to ensure it’s the best option possible.
The process of optimizing your transportation can help with aspects of the supply chains such as:
- Cost per mile
- On-time delivery rates
- Fuel efficiency
- Load utilization
- Order fulfillment times
Analyzing these metrics can help you identify areas for improvement in your supply chain. Monitoring those numbers over time will also help you evaluate how your efforts are paying off.
How to Optimize Supply Chain Transportation
The benefits of transportation optimization are appealing, but how do you do it? You’ll need to take a strategic approach that carefully evaluates every part of the process involved in moving your goods from point A to point B, including:
Network Design
Good transportation starts with good infrastructure. You need to ensure your warehouse and distribution points are in locations that help move products quickly and minimize the miles traveled and time on the road.
Carrier Selection
You can’t optimize alone. You’ll need to choose carriers with a proven track record of handling products like yours. Make sure they can give you on-time delivery at a competitive rate.
Route Planning
The fewer the miles traveled, the lower the costs and the faster the delivery. Optimizing your routes can save on costs. Consider using route planning software to determine the most efficient routes, as these programs will consider factors like distance, traffic, and delivery windows.
Load Consolidation
Combining smaller shipments into larger trucks can help maximize your cargo space and reduce transportation costs. If you don’t ship enough freight to justify a full trailer, talk to a logistics service provider about less-than-truckload shipping options.
Mode Selection
Carefully evaluate transportation modes for each part of the journey. Are trains more cost-effective? Would a truck be faster? Should you ship internationally via air or ocean? For each leg of the journey, you’ll need to consider cost, speed, and product needs and find the right balance for your business.
Why Transportation Optimization Matters
Yes, transportation optimization can save you money. It creates cost savings on fuel consumption, leads to fewer empty miles, and can reduce labor costs. However, the effort you put into optimizing this aspect of your supply chain will result in more than financial benefits.
You can also meet your sustainability and customer service goals by fine-tuning your transportation. Reducing the number of vehicles on the road and the miles traveled can minimize your business’s carbon footprint and create a more sustainable operation. Optimizing also enables you to proactively address potential disruptions and ensure customers get their shipments on time.
By delivering your products on time and cost-effectively, you invest in your business’s long-term success.
We Can Find the Right Transportation for Your Supply Chain
We understand the complexities of optimizing transportation within your supply chain. Our logistical experts are ready to help you build a more efficient and cost-effective supply chain from the first touch to the final mile.
We offer comprehensive transportation solutions, including a nationwide network of distribution points and carriers. We’ll help you create optimized routing, consolidate loads for cost savings, and provide real-time visibility throughout your product’s journey.
Make Beitler Logistics Services your partner in supply chain optimization. Contact us today and let’s talk about how we can help you lower costs and increase profits, mile after mile.