Optimize Transportation Management Strategies: 9 Tips

February 24th, 2025

4 Min Read

Summary

Implementing dynamic routing guides, optimizing freight procurement, and embracing technology can improve efficiency and cost-effectiveness. Continuous monitoring of carrier performance, proactive planning for peak seasons, and a commitment to ongoing improvement will help businesses build a resilient and scalable supply chain.

Today, managing your carrier base effectively is more critical than ever. With fluctuating capacity, rising costs and ever-changing customer demands, shippers need a strategic approach to carrier management that ensures reliability, efficiency and scalability. In our 25-year history, we have seen it all – so here are some tips we encourage our customers or new companies we engage with.

Whether you’re dealing with seasonal spikes, economic uncertainties or shifting market conditions, taking these recommended actions and implementing them in your business will help you optimize your transportation operations and build a resilient supply chain.

1. Diversify Your Carrier Network

A diversified carrier portfolio—including national, regional and local providers—gives you the flexibility to adapt to changing conditions. It is important to make sure that your carriers align with your freight profile as well. By having a mix of carriers coverage along with a mix of asset-based and non-asset-based carriers, you can better manage through capacity constraints and reduce risk.

2. Leverage Advanced Data and Analytics

In the age of digital transformation, data is king. Modern transportation management systems (TMS) and analytics platforms provide real-time insights into carrier performance, freight costs and market trends. Use these tools to track key metrics like on-time delivery rates, transit times and damage rates. AI and predictive analytics can also help you anticipate capacity shortages and adjust your strategy proactively.

3. Build Strong, Collaborative Relationships

Your carriers are more than just vendors—they’re strategic partners and more often than not the ones interacting directly with your customer. Foster strong relationships by maintaining open communication, paying invoices promptly and providing feedback. Regular check-ins and performance reviews can help you align on goals, address challenges and identify opportunities for improvement. A collaborative approach ensures you’ll have reliable partners during peak seasons and tight markets.

4. Implement Dynamic Routing Guides

Static routing guides are no longer sufficient in today’s fast-paced environment. Dynamic routing guides, powered by TMS technology, allow you to adapt to real-time conditions such as capacity availability, market rates and service requirements. Up to date routing guides are something we cannot stress enough, especially to make sure you’re always selecting the most cost-effective and reliable carriers for each shipment.

5. Optimize Freight Procurement Strategies

A balanced approach to freight procurement is essential. Combine long-term contracts with core carriers for baseline capacity and leverage the spot market for overflow or unexpected demand. If some spot shipments become more regular lanes, then reassess what makes sense based on your current needs and market conditions. This hybrid approach provides both stability and flexibility.

6. Monitor and Improve Carrier Performance

Not all carriers perform equally, and their performance can change over time. Establish a formal carrier scorecard (or leverage analytics and dashboards) to evaluate KPIs such as on-time pickup and delivery, freight accuracy and customer service. Use this data to reward top performers with more business and address underperformance through targeted improvements or look at alternative providers.

7. Embrace Technology and Automation

Technology is transforming the way shippers manage their carrier base. Invest in tools like TMS platforms, real-time tracking systems and automated freight matching to streamline operations and improve visibility. Automation in areas such as the freight invoice audit and payment process reduces manual errors, speeds up processes and allows your team to focus on strategic decision-making. Digital freight marketplaces can also help you connect with new carriers and expand your network.

8. Plan for Peak Seasons and Capacity Constraints

Capacity crunches during peak seasons (e.g., holidays, back-to-school, construction and others) can disrupt your supply chain if not managed properly. Plan ahead by forecasting demand, securing additional capacity and building buffer time into your schedules. Collaborate with carriers early to understand their capacity limits if they work with other cyclical businesses and explore creative solutions, such as drop-trailer programs or intermodal transportation.

9. Adopt a Continuous Improvement Mindset

Last, but definitely not least, transportation management is not a one-and-done task—it’s an ongoing process. Regularly assess your carrier base to ensure it aligns with your business goals and market conditions. Solicit feedback from internal stakeholders, customers, partners and carriers to identify areas for improvement.

Have a question about any of the above?

At Transportation Insight, we specialize in helping shippers navigate the complexities of transportation management. Our team of experts combines industry knowledge, advanced technology and a customer-first approach to deliver tailored solutions that drive efficiency, reduce costs and enhance service levels.

Whether you’re looking to diversify your carrier network, leverage data-driven insights or optimize your freight procurement strategy, we’re here to help you every step of the way.