How to approach transportation strategy and execution

How to approach transportation strategy and execution

1 Overview

The Challenge

After identifying your warehousing strategy and addressing the compliance/tax/legal considerations, get a plan in place for your Transportation strategy and execution, as this will directly impact the end customer experience and therefore overall growth and conversion.

The Aim

To have a Transportation strategy and execution that exceed customer expectations while meeting your cost targets.

Transportation is a fairly complex space and for purposes of this document, we have divided it in 3 sections:

  • Inbound - since most of manufacturing across products happens in Asia, having a solid air, Ocean and rail strategy to get products from Asia into in-region is necessary

  • Outbound Parcel - relevant to Merchants with an e-commerce presence. Typically, Outbound parcel Transportation costs is a key contributor to the Logistics P&L and hence there is a need to focus on optimizing it while improving speed to customer

  • Outbound LTL/TL - relevant to Merchants who deliver to Retailer DCs, Stores or their own Retail stores. Also relevant to shippers looking to deliver to last mile carriers. This transportation leg represents the largest volumes and therefore highest risk in the network. Procuring smooth operations in the domestic distribution is the base of a solid supply chain. Understanding the landscape of the players by market and mode will also help with the best alternatives to meet delivery requirements that retailers may have at their DCs or Stores. Choosing the right partners will power your network with flexibility and scale.