Network Analysis / Network Optimization

Network analysis looks at the big picture: how a shipper's entire web of origins, destinations, warehouses, carriers, and modes fits together, and whether that configuration is optimal. It's a strategic exercise – typically conducted annually or when major changes occur, like adding a new distribution center, entering a new market, or onboarding a large customer – that sits above day-to-day execution decisions.

A network optimization study examines facility locations and their proximity to demand, inbound and outbound lane structures, mode utilization across the network, inventory positioning and its effect on transportation cost, carrier allocation patterns, and total cost of service at different service levels. The goal is to find the configuration that minimizes total landed cost – the sum of transportation, warehousing, and inventory carrying costs – while meeting delivery commitments. Sometimes the answer is counterintuitive: adding a warehouse increases facility cost but reduces total transportation spend by enough to lower overall cost.

For mid-market shippers, full network optimization with modeling software can be resource-intensive. But even lightweight network analysis – mapping origin-destination volumes, identifying disproportionately expensive lanes, and evaluating whether consolidation points or mode shifts could reduce cost – delivers meaningful results. A shipper who discovers that 40% of their freight spend goes to five lanes now knows exactly where to focus their optimization efforts.

Network analysis also informs carrier strategy. Understanding volume density by region helps shippers align their carrier mix – asset carriers for high-volume, consistent lanes; brokers for volatile or low-density corridors – and negotiate rates with credible volume commitments.