Post by Carter Logistics LLC

For many Tier 1 and Tier 2 automotive suppliers, inbound freight is often treated as a fixed cost rather than an operational variable. However, it represents one of the few areas where direct P&L impact can be realized through network optimization. We have moved away from traditional dedicated transport in favor of an asset-based Shared Milkrun model. By consolidating daily pick-ups across multiple shippers, the model addresses two primary inefficiencies: Low Cube Utilization: Ensuring trucks are consistently loaded to capacity. Cost Fragmentation: Distributing the cost of transport across the shared network rather than absorbing the full expense of underutilized lanes. On average, suppliers transitioning to this shared model have identified annual savings of $901K, primarily by optimizing route density and reducing empty miles. #AutomotiveLogistics #SupplyChainOptimization #FreightSavings #SharedMilkrun