How Transportation Network Optimization Enhances Supply Chain Performance

The freight market is at a pivotal crossroads. Rising costs, evolving consumer demands, and market uncertainties are challenging shippers and carriers to deliver greater efficiency while maintaining resilience. Yet, within the complexity of these dynamics lies a key opportunity—the chance to elevate supply chain performance by adopting transportation network optimization.

Transportation network optimization is a strategy for sustainable growth. By harnessing the power of data, advanced technologies, and strategic partnerships, shippers can turn inefficiencies into strengths, improving cost management, sustainability, and overall operational success.  

What is transportation network optimization?

At its core, transportation network optimization is the strategic process of refining a shipper’s logistics network to achieve maximum efficiency. This involves evaluating every aspect of the network—routes, carriers, fuel strategies, and linehaul rates—to pinpoint inefficiencies and implement improvements. 

Why it matters

The global supply chain is more interconnected than ever, but that connectivity has also brought its fair share of challenges. Transportation costs are rising, regulations are tightening, and consumers expect shippers to take responsibility for their environmental impact. Unless shippers proactively optimize their networks, these challenges can spiral into lost profits and diminished brand trust.

When implemented effectively, transportation network optimization drives:

• Transparency across shipments to improve accountability and decision-making.
• Cost-efficiency, balancing service quality with financial sustainability.
• Reduced operational bottlenecks, streamlining workflows, and saving time.
• Flexibility, allowing shippers to adapt in the face of market volatility.

Optimization prepares shippers not only to respond to these complexities but to capitalize on emerging opportunities. 

5 Key strategies for optimizing your transportation network 

To turn transportation challenges into opportunities, consider implementing these five core strategies: 

1. Route Optimization

Every inefficient route comes with a price—wasted time, resources, and higher emissions. Route optimization focuses on minimizing these inefficiencies, employing data and AI to guide dynamic, real-time routing decisions. The goal is simple but powerful—find the most efficient path for every shipment. 

• Reduce empty backhauls by consolidating loads.
• Adjust routes based on changing factors like weather and congestion.
• Cut emissions to align with sustainability goals. 

2. Carrier Selection

A strong transportation network relies on collaborative carrier partnerships. Selecting the right carriers involves more than looking at rates. Procurement leaders must evaluate potential partners against a variety of factors, such as:

• Lane-specific performance and reliability.
• Alignment with sustainability initiatives.
• Use of technology for analytics and visibility.

By building data-driven relationships, shippers can secure dependable service, manage costs, and lower emissions without sacrificing quality. Treating carriers as strategic partners, rather than transactional vendors, fosters greater collaboration and consistency. 

3. Leveraging Advanced Technology

Technology is at the heart of smarter logistics. Platforms equipped with features like predictive analytics, streamlined workflows, and real-time visibility provide the insights needed to adapt quickly.  

For example:

• Predictive analytics helps forecast demand shifts and mitigate risks.
• Freight management systems streamline carrier selection, optimize linehaul rate decisions, and simplify tracking and reporting.
• Real-time, transaction-based data delivers accurate and actionable intel to refine strategies continuously.

These innovations unlock new efficiencies and allow shippers to stay competitive in a fast-evolving industry. 

4. Cost-Efficiency 

While costs will always be a pressure point, shippers who adopt forward-thinking strategies can proactively manage expenses. The key lies in taking a holistic, data-backed approach to budgeting and procurement. Consider actions like:

• Employing market-based fuel management systems to match market fluctuations.
• Diversifying transportation modes to balance priorities with affordability.
• Balancing long-term contracts with short-term savings on the spot market. 

5. Sustainability 

Leading shippers are incorporating sustainability into every layer of their transportation networks. From embracing alternative energy to reviewing routes to align their operations and procurement strategies with sustainability goals, shippers are looking for actionable ways to balance cost and sustainability. Tools like Breakthrough’s CleanMile solution provide shippers with real-time insights into their emissions footprint, enabling actionable, lane-level emissions reduction strategies. 

Overcome challenges in transportation optimization

While the benefits are undeniable, optimization comes with its own challenges. Understanding and addressing these obstacles is critical for success: 

1. Lean Transportation Teams

Many organizations are operating with limited team resources, making it harder to focus on proactive optimization. Partnering with experts like Breakthrough can provide the support and insight needed to bridge these gaps. 

2. Fluctuating Fuel Prices  

Fuel costs are often the second-largest expense in the transportation industry, and can significantly impact budgets due to market fluctuations. Shippers can take control of these uncertainties by locking in a fixed fuel price, enabling smarter spending and improved cost predictability. 

4. Regulatory Compliance  

The transportation industry continues to face complexity due to unclear guidance on state, federal, and international policies. States like California and Washington are tightening clean fuel standards. At the same time, the Clean Fuel Production Tax Credit (45Z) has become a key industry focus, extending benefits through December 31, 2029. However, this credit applies only to fuels made from North American feedstocks, excludes negative emissions rates, and does not account for indirect land use change (ILUC) when determining credits. With sustainability driving both operational efficiencies and consumer preferences, shippers are increasingly prioritizing long-term strategies to stay ahead. 

Trends in transportation optimization

Transportation optimization is evolving rapidly, driven by advancements in AI and machine learning, alternative energy infrastructure, and an ever-growing wealth of data. Here's what you need to know to build your competitive advantage:  

AI-Driven Route Planning  

Artificial intelligence is revolutionizing logistics by enabling predictive, adaptable routing decisions. Gartner predicts at least 15% of day-to-day work decisions will be made autonomously through agentic AI by 2028, up from 0% in 2024. With AI, inefficiencies can be identified and resolved in real time, driving cost reductions and operational improvements.

Adoption of Alternative Fuels  

Shippers are increasingly turning to alternative energy sources such as renewable natural gas (RNG) and renewable diesel, especially in areas where equipment is available and fuel costs are competitive with traditional diesel. The 2025 State of Transportation Report reveals that 30% of shippers plan to expand their use of alternative energy.

Data-Driven Procurement  

Gone are the days of decisions based on intuition. By relying on data and performance analytics, shippers can select asset-based carriers that match network priorities, driving stronger results and a more resilient network. 

Optimize your transportation network with Breakthrough

The transportation industry demands innovative solutions that empower shippers to make strategic decisions with confidence. By focusing on foundational strategies such as adopting alternative energy sources and leveraging data-driven procurement practices, shippers can build a resilient and efficient network. Breakthrough’s real-time, shipper-transacted freight data offers unparalleled insights, enabling shippers to optimize their operations and align their networks with evolving market demands.  

With Network Intelligence, Breakthrough provides a clear and actionable overview of your transportation network, facilitating smarter, more informed decisions. Whether you want to cut costs, improve sustainability, or unlock new efficiencies, our approach is designed to tailor solutions to your unique challenges.