The Revolution in Network Optimization: How Transportation and Demand Variability Open New Frontiers

Executive Summary
For decades, network optimization focused primarily on facility location and inventory allocation. The results looked impressive – lower costs, higher service levels, improved efficiency. But those static models failed to capture the dynamic realities of transportation and demand. In today’s volatile market, that old approach no longer works.

The Tompkins team is introducing a new paradigm: transportation-led network optimization, integrated with demand variability modeling. Together, these forces redefine what “optimal” means in modern supply chains.

In Part 1, Jim Tompkins explains how transportation and demand variability have become the twin engines of a supply chain revolution. Static averages and fixed assumptions are giving way to dynamic, data-driven strategies that continually adjust to real-world conditions. Companies that integrate transportation early – and repeatedly – in the design process can double ROI while achieving higher service performance and resilience.

In Part 2, Sara Shingleton demonstrates what this revolution looks like in practice. For B2C companies, lowering parcel costs enables expansion into high-cost, high-density markets that accelerate delivery and improve customer satisfaction. For B2B enterprises, where transportation accounts for roughly 65% of supply chain expense, efficiency gains drive consolidation – fewer facilities, lower overhead, steady service. In both models, transportation cost reductions reshape the optimal distribution footprint and redefine strategic balance between cost and service.

In Part 3, Mike Royster brings the framework to life through execution. He outlines how organizations can uncover and sustain 10-20% transportation savings through comprehensive transportation analyses, Managed Transportation Solutions (MTS) that include advance Transportation Management Systems (TMS) and continuous freight and parcel auditing via match pay. These actions convert theory into measurable financial and operational impact.

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