The action of making the best or most effective use of a situation or resource.
Transportation is the largest logistics cost component, a critical customer touch point, and significantly impacts a company’s ability to provide superior speed of delivery performance. For many organizations it remains largely a manual process, with many individual decision makers, outdated practices and crude management controls.
The e-commerce industry encounters a typical 6-8% general rate increase imposed by the carriers each year while experiencing challenges to overcome an ever-increasing demand to deliver faster to the end consumer. Our research and experience show that clients typically find 3% – 5% net (year over year) annual transportation savings after our engagement and due diligence within their fulfillment operations.
Transportation optimization is our process of reducing and/or eliminating costs from the supply chain. Our unique approach uses best in class packaging innovation solutions to attack non-productive cost factors such as dimensional weight, oversize and many other negative accessorial costs. We believe the most logical place to start is in packaging optimization or rightsizing.
Our transportation optimization programs are designed to identify and capture those savings, and we utilize the following tools: