Logistics Review

Logistics Review

Evaluate and improve logistics operations across the transportation network to reduce cost, improve service reliability, and increase visibility.

Input Gathering

Step-by-Step Process

Step 1 — Shipment Profile Analysis

Build a complete picture of the logistics operation:

Flag anomalies: shipments below minimum weight, excessive accessorials, split shipments that could consolidate.

Step 2 — Carrier Performance Scorecard

Score each carrier on a weighted composite:

Produce a quarterly ranking and identify carriers eligible for volume increase or reduction.

Step 3 — Cost Benchmarking and Spend Analysis

Analyze logistics spend against benchmarks:

• Cost per unit shipped (by mode and lane).
• Cost as % of revenue — compare to industry median (typically 4-8% for manufacturing, 8-15% for e-commerce).
• Accessorial spend breakdown — fuel surcharge, detention, liftgate, residential, redelivery.
• Rate trend analysis — contracted rates vs. spot market over the review period.
• Spend leakage — shipments moving outside contracted rates, unauthorized carriers, off-contract accessorials.

Build a savings waterfall identifying each opportunity by category and estimated annual value.

Step 4 — Lead Time Analysis

Map end-to-end lead times for key lanes:

Identify the longest and most variable components; quantify the opportunity from reducing each by 10-25%.

Step 5 — Last-Mile Delivery Assessment

Evaluate last-mile performance specifically:

• Cost per delivery by zone, package size, and delivery type (standard, express, same-day).
• First-attempt delivery success rate — target > 92%.
• Customer satisfaction scores tied to delivery experience.
• Returns logistics cost — reverse logistics as % of forward cost.
• Alternative delivery model evaluation — gig economy, locker networks, micro-fulfillment, crowd-shipping.

Step 6 — Recommendations and Action Plan

Prioritize opportunities using an impact-effort matrix:

Output Format

## Logistics Review — [Scope/Region] — [Period]

### Executive Summary
- Total logistics spend reviewed: [$X]
- Shipments analyzed: [count]
- Identified savings opportunities: [$Y] ([%] of spend)
- Service level: [current OTD%] -> [projected OTD%]

### Shipment Profile
| Mode   | Shipments | Spend     | Avg Cost/Shipment | Volume Trend |
|--------|-----------|-----------|-------------------|--------------|
| TL     | ...       | ...       | ...               | ...          |
| LTL    | ...       | ...       | ...               | ...          |
| Parcel | ...       | ...       | ...               | ...          |

### Carrier Scorecard
| Carrier | OTD   | Damage Rate | Invoice Accuracy | Tender Accept | Composite Score |
|---------|-------|-------------|------------------|---------------|-----------------|
| ...     | ...   | ...         | ...              | ...           | ...             |

### Cost Benchmarking
- Cost per unit shipped: [$X] vs. benchmark [$Y]
- Accessorial spend: [%] of total (target: < 15%)
- Savings waterfall: [chart or table]

### Lead Time Breakdown
| Component         | Current (days) | Target (days) | Gap   |
|-------------------|----------------|---------------|-------|
| Order processing  | ...            | ...           | ...   |
| Transit           | ...            | ...           | ...   |
| Last mile         | ...            | ...           | ...   |

### Recommendations (Prioritized)
1. [Initiative — savings — timeline]
2. ...

Quality Checklist

• Shipment data validated for completeness (no missing lanes, costs, or dates)
• Carrier scorecard uses weighted composite, not a single metric
• Cost benchmarks sourced from current market data or industry reports
• Accessorial charges broken out and anomalies flagged
• Lead time analysis covers end-to-end, not just transit
• Last-mile assessment includes customer experience metrics
• Savings estimates are conservative and assumption-documented
• Recommendations prioritized by impact and feasibility
• Quick wins separated from structural changes
• Stakeholder review scheduled for findings presentation

Edge Cases

• Multi-modal shipments (e.g., ocean + truck): Analyze each leg separately; attribute cost and transit time per segment; watch for dwell time at transshipment points.
• Cross-border / international lanes: Include customs brokerage, duties, and compliance costs; factor in trade agreement impacts and tariff changes.
• Peak season vs. off-peak distortion: Normalize metrics by season; benchmark peak performance separately; evaluate surge capacity strategy.
• Small parcel high-volume shippers: Focus on zone skipping, regional carrier diversification, and dimensional weight optimization.
• Dedicated fleet vs. common carrier: Run total cost of ownership comparison including fixed fleet costs, empty miles, and driver utilization.
• Fragile or hazardous goods: Assess specialized carrier performance separately; include regulatory compliance cost in benchmarking.