Transportation Cost Optimization involves reducing the total expenses associated with moving goods across the supply chain. It includes route optimization, carrier selection, shipment consolidation, and mode selection. Transportation costs often make up a large portion of supply chain expenses. Without optimization, companies may face inefficient routes, underutilized vehicles, and high freight charges. Inventory optimization complements transportation cost management by aligning inventory placement with demand centers. This reduces the distance and frequency of shipments, leading to lower costs and faster delivery.
