With deep expertise across multiple transportation modes and both domestic and international networks, our consultants help organizations evaluate current network strategies and plan long-term expansions or reallocations to adapt to evolving business needs and demand patterns.
We employ network optimization tools for strategic, high-level decision making about the entire supply chain network (facilities, inventory, flows), and transportation modeling tools for more tactical, detailed decisions about moving goods efficiently within the network (routes, modes, carriers). In both scenarios, we work with LSP and distributor operations and sales organizations to adopt these tools to improve performance and client acquisition.
The benefits of an optimized supply chain include:
- Significant cost reductions in transportation, warehousing, and inventory;
- Improved service levels through faster, more reliable deliveries;
- Increased agility and resilience to market changes and disruptions
- A reduced environmental footprint by optimizing routes and resource use
- For LSPs and distributors, we additionally see:
- Higher win rates in sales cycles and associated revenue growth
- Higher profitability when employing simulation tools for pricing estimation.
We employ network optimization tools for strategic, high-level decision making about the entire supply chain network (facilities, inventory, flows), and transportation modeling tools for more tactical, detailed decisions about moving goods efficiently within the network (routes, modes, carriers). In both scenarios, we work with LSP and distributor
A Network Optimization tool is a supply chain software solution designed to analyze, model, and optimize the flow of goods, inventory, and resources across a logistics or supply chain network. Its main goal is to help companies reduce costs, improve service levels, and make strategic decisions about network design and operations.
- Strategic Network Design – Determines the optimal number and location of facilities (warehouses, distribution centers, cross-docks, factories), optimizes capacity allocation across sites, and balances trade-offs between cost, service, and inventory.
- Inventory Optimization – Determines optimal inventory levels at each node to meet service targets, minimizes holding costs while maintaining desired fill rates, and evaluates safety stock, reorder points, and multi-echelon strategies.
- Transportation & Logistics Optimization – Identifies cost-effective transportation modes, routes, and carrier assignments, and can simulate impact of changing lanes, modes, or shipment consolidation.
- Scenario Planning & What-If Analysis – Models the impact of new products, new customers, facility changes, or disruptions to support decisions like network expansion, relocation, or rationalization.
- Cost-to-Serve Analysis – Calculates full cost of serving customers, including transportation, warehousing, and inventory.
Network optimization tools can be leveraged periodically as a service or developed as a core competency for firms in hyper-growth or highly active in M&A strategies. SCT estimates typical ROI projections for network optimization initiatives as:
- Cost savings: 5–15% on network-related costs (transportation + warehousing + inventory).
- Inventory reduction: 10–20% reduction in working capital tied up in stock.
Transportation modeling software is a specialized supply chain tool designed to analyze, simulate, and optimize the movement of goods across transportation networks. Its focus is on planning, cost reduction, and strategic decision-making related to freight and logistics operations.
- Route Optimization – Identifies the most efficient routes for shipments, considering distance, transit time, and cost.
- Mode & Carrier Selection – Evaluates different transportation modes: truckload, LTL, parcel, rail, air, ocean.
- Freight Cost Simulation – Models total transportation costs, including fuel, accessorial charges, duties, tariffs, and handling fees.
- Scenario Planning & “What-If” Analysis – A primary use case of the modeling tool is in support of scenario analysis (e.g., changing fuel prices, adding lanes, or consolidating shipments, or advanced cases such as adding new customers or regions, changing service levels, and risk management such as responding to disruptions (port closures, labor strikes, etc.)
Transportation modeling tools are exceptionally valuable in distribution and LSP environments where customer and client acquisition is a focus and there is a need for clarity in cost impacts associated with contract pricing. SCT estimates typical ROI projections for modeling tools:
- Freight savings: 5–15% on optimized lanes and modes.
- Labor savings: Reduced manual planning effort (10–30%).
- Profitability growth: 2-5% of freight spend based on bidding accuracy. This is not to mention revenue potential associated with embedding transportation modeling into sales cycles with prospective clients or customers.
