Development of a transport management strategy

Transportation is a central component of modern supply chains and has a significant impact on a company's performance and profitability. In almost all industries, transportation costs account for a considerable proportion of total logistics costs – often between 30 and 60 percent. With increasing global flows of goods, growing internationalization, and rising customer demands for delivery speed and transparency, transport management is becoming an increasingly important strategic focus of supply chain management.

This importance is currently being further reinforced by several trends: The increase in transport volumes – both in land transport and in overseas and air freight – is leading to bottlenecks in transport capacities, while volatile freight prices, geopolitical tensions, and energy price increases are making cost planning more difficult. At the same time, the predictability and reliability of transport is declining: delays, port congestion, driver shortages, and capacity bottlenecks in infrastructure are increasingly affecting delivery performance. Companies often respond to this by increasing safety stocks—a measure that, however, leads to additional capital commitment and storage costs.

Against this backdrop, the development of a holistic transport management strategy is becoming a decisive competitive factor. Such a strategy defines how a company structures, controls, monitors, and continuously improves its transport operations. The starting point is the development of a clear target vision that encompasses both strategic and operational dimensions. This target vision should answer the following questions:

• What significance do transport costs and performance have in the overall context of the supply chain?
• What service levels, delivery times, and cost targets should be achieved?
• How can these targets be measured and controlled using key figures such as “transport costs per unit,” “on-time delivery,” “CO₂ emissions per shipment,” or “transport efficiency index”?

On this basis, transport concepts are developed that are tailored to the individual requirements of the product and market structure. These include, for example:

• Centralized versus decentralized transport management,
• single or multi-carrier strategies,
• cross-docking and milk run concepts,
• combined transport (road-rail) for cost and emission reduction,
• or the integration of 4PL and logistics service providers for comprehensive network control.

An increasingly important component of modern strategies is the use of transport management systems (TMS). These systems enable end-to-end digitization of the transport chain—from order planning and freight tendering to shipment tracking (track & trace) and billing. By integrating real-time data, IoT sensors, and AI-supported route optimization, companies can significantly improve their transparency, responsiveness, and cost control.

In addition to efficiency, sustainability also plays a central role in transportation today. Strategies for reducing emissions—such as consolidating shipments, using alternative drive systems, route optimization, or CO₂ compensation—are increasingly becoming the norm. A sustainable transport strategy combines ecological goals with economic efficiency and strengthens the brand image at the same time.

Another strategic element concerns the question of the organizational anchoring of transport management: Should the control of transports be built as a core competency within the company—with its own transport control room, TMS, and reporting—or is outsourcing to specialized 4PL providers (“Fourth Party Logistics”) more economically sensible? Both models have pros and cons: while the internal solution offers greater control and flexibility, outsourcing can secure economies of scale and technological advancement.

Finally, the topic of risk management and resilience must not be neglected. A modern transport strategy must include the ability to respond quickly to disruptions such as strikes, border closures, supplier outages, or natural events. Scenario analyses, backup carriers, alternative transport routes, and digital early warning systems increase the robustness of the transport network sustainably.