Insights

Network Optimization: Restructure to Move Forward

“What I’m saying is, we want to make fewer trips to Mars.” 

  • FedEx Ground CEO John Smith

 

Based on internal projections, FedEx predicts their trucking fleet will cover 3.4 billion miles this year, or roughly 100 trips to Mars. This absolutely absurd amount of travel has forced them to start restructuring their current business units: First, consolidating their Ground and Express services in the coming months, and then working to combine their Air and Ground services over the next few years. 

These massive changes from one of the nation’s leading parcel carriers are in response to continued demand from customers for e-commerce and home delivery options. They reflect an overall shift in the parcel market, and if the carriers themselves are working to optimize their networks, you can bet it’s time for shippers to do the same. 

Change is never easy though, and companies with limited resources and logistics expertise struggle with the idea of a network optimization project. The timing couldn’t be better though, as the latest report from LMI indicates record-low transportation prices, driving a surge in transportation capacity. 

Translation: The carriers are thirsty for business. 

But if bid negotiations, large scale rating analyses, and network mapping aren’t your thing, Zero Down has you covered. Our network optimization service utilizes the latest in logistics technology to compare carrier agreements down to the penny level, making sure you end up with the most competitive rates possible. Our expert team also calls on decades of industry knowledge to automate the bid process on your behalf, letting you focus on what your business does best. Finally, our advanced network mapping dashboards pinpoint the ideal location for your distribution centers, helping you reach your customers in the most efficient way possible. 

Restructuring can be an intimidating prospect, but if market trends are making even national carriers pay attention, it’s definitely time. Don’t be afraid to move forward and meet your customers where they are. 

If you’re interested in learning more about how Zero Down can help optimize your network, reach out to us today, and let’s get started. 

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