Transportation Network Optimization 02

Shifting modes of transportation is an amazing way to cut costs without constantly brow-beating carriers over rate.

I helped a manufacturer shift modes on outbound freight lanes, resulting in 25% 𝐥𝐨𝐰𝐞𝐫 𝐟𝐫𝐞𝐢𝐠𝐡𝐭 𝐬𝐩𝐞𝐧𝐝, roughly $2M in annual savings.

Parcel volumes dropped from 15% of the total to 3%. LTL volumes were cut in half with FTL volumes doubled. This had the effect of drastically 𝐜𝐮𝐭𝐭𝐢𝐧𝐠 𝐝𝐚𝐦𝐚𝐠𝐞 𝐫𝐚𝐭𝐞𝐬 𝐚𝐭 𝐭𝐡𝐞 𝐬𝐚𝐦𝐞 𝐭𝐢𝐦𝐞 𝐚𝐬 𝐨𝐮𝐭𝐛𝐨𝐮𝐧𝐝 𝐟𝐫𝐞𝐢𝐠𝐡𝐭 𝐬𝐩𝐞𝐧𝐝 𝐰𝐚𝐬 𝐩𝐥𝐮𝐦𝐦𝐞𝐭𝐢𝐧𝐠.

In a market where LTL and parcel are more expensive than they were at the peak of COVID and FTL has been flat for 2 1/2 years and counting, manufacturers have an 𝐢𝐦𝐦𝐞𝐧𝐬𝐞 𝐨𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐲 𝐭𝐨 𝐜𝐚𝐩𝐢𝐭𝐚𝐥𝐢𝐳𝐞 on an initiative like this.

All it takes is someone that has experience with this, knows what to look for, and that has the data chops. A current state analysis is an extremely 𝐥𝐨𝐰-𝐫𝐢𝐬𝐤, 𝐥𝐨𝐰-𝐜𝐨𝐬𝐭 way to find out if you're leaving money on the table in your transportation network.

More in the video.

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Transportation Network Optimization 03

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Transportation Network Optimization 01