What Are the Top 4 Challenges of Middle-Mile Logistics?

Middle-mile logistics is the process of transporting products from a distribution center or warehouse to a retail store or fulfillment center, as defined by the National Retail Federation. The middle mile is often overlooked, but it’s the backbone of the supply chain, ensuring the transportation of products in wholesale quantities and the movement of products to the customers’ homes. In this blog, we will discuss the challenges involved in navigating middle-mile logistics with plausible approaches and solutions that can help improve your own experience when managing your supply chain.

To learn more about middle-mile logistics and how they can improve the efficiency of your business, contact our team at Xpressman Trucking & Logistics.

Inaccurate Routing and Optimization

Routing is key to middle-mile logistics, but inaccurate routing is still a challenge for logistics professionals. Poor route planning can lead to lengthy delivery schedules, fuel inefficiency, and increased operational costs.

Additionally, outdated maps, traffic patterns, and road closures can result in drivers backtracking, which leads to empty miles. In some cases, as with two-story warehouses or multi-hub networks, decision-making when routing can be an extreme challenge if the third mode addition of long-distance transport (trucks, rail, air) becomes part of the routing to be planned.

Solution: Use route optimization & planning software that includes GPS route optimization and traffic data or weather data to develop a route that can save time and result in lower fuel consumption. Many of these routing tools lower fuel costs and can improve delivery schedules by as much as 20%.

Visibility and Data Silos

Visibility is critical to mid-mile logistics; however, many companies fear that the data can be fragmented. In essence, without tracking shipment status, shippers, carriers, and warehouse teams lack a clear understanding of the inventory’s status. This can contribute to lost assets, shipments that arrive late, and inventory issues that can potentially cost thousands of dollars every year. The greater the distance or number of hubs, the worse the situation gets, as it is increasingly challenging to synchronize teams to coordinate their activities.

Solution: For real-time visibility, implement a warehouse management system (WMS) or transportation management system (TMS). By integrating data from several stakeholders, these systems guarantee precise tracking and expedited decision-making.

Demand Variability and Capacity Limitations

Capacity issues are a recurring problem, particularly during busy times like the holidays. Resources for storage and transportation may be overloaded by high demand, leading to delays and higher expenses. For instance, middle-mile operations may be strained by an unexpected spike in e-commerce orders, delaying last-mile delivery schedules.

Solution: The answer is to grow capacity during peak periods by collaborating with on-demand delivery services or third-party logistics (3PL) providers. Predictive analytics and adaptable fleet management can also aid in foreseeing demand surges.

Barriers to Technology Adoption

In many cases, companies use outdated systems or manual processes, making it hard for them to adopt newer technologies like AI-driven analytics or automated routing processes. Companies that do want to pursue technology adoption may face challenges from employees’ reluctance to automate and “lost” time in transitioning to use new tech, incompatible systems, and other issues that are preventing them from adopting timeliness, efficiency, and accuracy into their operations.

Solution: Leverage technology first, then layer in new technology like AI and telematics. Start with technology pilot programs and work to introduce safety platforms.

Get a Free Quote on Middle-Mile Shipping & Logistics in the Northeast with Xpressman

At Xpressman Trucking & Logistics, we are a 3PL provider that offers a variety of services to help streamline and optimize your supply chain. From route optimization software to cross-docking and fulfillment services, we have the tools and expertise to help you achieve your business goals. We provide a streamlined and efficient solution for getting your goods from manufacturer to consumer without the hassle of dealing with multiple carriers and middlemen. To learn more and get a free quote, contact us online or call us at 781-836-4614!