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Network shape decisions made at the last redesign rarely match demand and service economics two years later. A Logistics Network Optimization Playbook reads flows, lanes, modes, and carrier performance to model alternative network configurations and surface the redesigns that improve cost-to-serve without breaking the SLA.
The Challenge
The network was designed at a moment in time, signed off, and rolled into operations. The slide deck stays the reference. Demand has shifted, carrier rates have moved, new lanes have opened, but the network is still serving the picture the slide deck froze.
Each lane gets re-bid on its own. Mode decisions get made per shipment. Carrier scorecards drive routing within a lane. Nobody is looking at the network-level interaction between these decisions, where shifting a DC, mode, or carrier on one lane changes the economics of three others.
The CFO sees total logistics spend. The operations team sees lane-level rate cards. Neither sees cost-to-serve per customer or per channel, so decisions favor whichever cost is loudest in the current quarter rather than the one that hurts margin most.
How eyko Solves It
A Logistics Network Optimization Playbook reads flow data (origin, destination, volume, weight, service level), lane and mode economics, carrier performance, DC capacity, and customer cost-to-serve baselines to model alternative network configurations. It surfaces redesigns that improve cost-to-serve without breaking SLA, identifies cross-lane interactions, and prioritizes the changes by total network impact rather than per-lane savings.
The Playbook modeled 12 months of flow data across 4 DCs, 28 carrier-lane combinations, and 6 mode mixes. The current network runs 8% above the optimized cost-to-serve baseline at the same service level. The top 5 redesign moves account for 64% of the gap and require no facility changes (only mode, carrier-lane, and DC-assignment shifts). Two customer cost-to-serve outliers consume 12% of total logistics spend.
| Metric | Current | Benchmark | Status |
|---|---|---|---|
| Primary indicator | Flagged | Target | Action needed |
| Secondary indicator | Monitoring | Within range | On track |
| Trend direction | Declining | Stable | Review required |
Logistics Network Optimization models the logistics network end to end (flows, lanes, modes, carriers, DCs) and surfaces redesigns that improve cost-to-serve without breaking SLA. The Playbook accounts for cross-lane interactions where shifting one decision changes the economics of others, and prioritizes changes by total network impact so logistics leadership can ship continuous improvements rather than wait for the next big network redesign.
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FAQ
Everything you need to know about Network Optimization Map.
Logistics Network Optimization is an AI-driven model of the logistics network end to end (flows, lanes, modes, carriers, DCs) that surfaces redesigns improving cost-to-serve without breaking SLA. The Playbook accounts for cross-lane interactions where shifting one decision changes the economics of others, prioritizes changes by total network impact, and recommends sequenced rollouts so logistics leadership ships continuous improvements rather than waiting for the next episodic redesign.
The Playbook reads from your transportation management system (lane data, mode mix, carrier performance, rate cards), warehouse management system (DC capacity, throughput, inventory positions), order management system (flow data by origin, destination, service level, customer), and finance system for customer cost-to-serve aggregation. At least 12 months of paired flow-to-cost data anchors the optimization.
Network design studies are episodic and focus on facility location and capacity. Logistics Network Optimization works continuously within the existing facility footprint and optimizes mode, carrier-lane, and DC-assignment decisions. The two are complementary: network design occasionally reshapes the footprint, ongoing optimization keeps the operating decisions inside the footprint efficient at scale.
Yes. The Playbook models network-level cost rather than just per-lane savings. Shifting a mode on one lane often changes the carrier mix economics on related lanes, and re-assigning a DC affects multiple lanes simultaneously. The Playbook surfaces these interactions and recommends sequenced changes that respect the dependencies so the redesign produces net savings without creating ripple-effect cost increases elsewhere.
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