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November 7, 2024
The last mile gets most of the attention in the delivery space, and deservedly so. But, even the best last mile strategies can unravel if middle mile logistics aren't running smoothly.
The middle mile is the critical stage that connects manufacturing and distribution hubs. It often gets overlooked because it’s not as visible or customer-facing as the last mile. But the middle plays an essential role as a bridge between the first and the last miles, ensuring that products get where they need to be when they need to be there — so that they’re ready for final delivery.
There’s nothing simple about middle mile logistics, though. It presents its own set of unique challenges, from route optimization to managing bulk shipments. This article covers key concepts and strategies for mastering middle mile logistics, including insights to help your business drive better performance and create a more efficient, transparent, and reliable middle mile. Continue reading to learn more. And, if you’re ready to streamline your middle mile, start shipping with FRAYT as your middle mile logistics partner.
The middle mile acts as a “bridge,” as mentioned above. But it’s also the backbone of the broader supply chain. In the modern age, raw materials and manufacturing sites are typically far from end customers. The middle mile is where this gap is closed. In some cases, the middle mile requires air freight to move shipments from continent to continent. In other cases, trucks and rail are needed to move shipments from state to state here in the U.S. The objective? To ensure that goods are ready at the right time and place for last mile delivery.
The middle mile programs that thrive and achieve this objective share the same characteristics:
However, these characteristics are difficult to develop, especially when an organization is self-managing its own middle mile delivery program. It’s difficult to find the most efficient routes time after time. Fleet management is expensive and complex. And communication among manufacturers, shippers, carriers, distributors, and others is difficult to streamline.
That said, mastering the middle mile has significant rewards. An effective middle mile leads to smoother operations, lower costs, and better overall supply chain performance.
Beyond the definition of middle mile logistics, specific concepts serve as the driving force behind middle mile success. As the middle mile has evolved in recent years, these concepts have informed the strategies used by successful middle mile programs. Here’s a look at some of the most important middle mile logistics concepts to know:
Traditionally, achieving real-time visibility into shipments traversing the middle mile has been difficult. This is especially true as shipments transition from the middle to the last mile. Still, visibility and real-time tracking have emerged as key differentiators between middle mile programs that struggle and those that thrive.
What does visibility provide? It allows for close coordination among all parties involved in a shipment and empowers those parties to make informed decisions. On the opposite end of the spectrum, a lack of visibility leads to data fragmentation and a lack of communication between shippers, carriers, and warehouse teams. The consequences might include delays, increased costs, and poor customer experiences.
Shipments in the middle mile travel long distances across different modes of transportation. Route optimization ensures that these shipments take the best, most efficient, least costly path to the final mile. Effective route optimization means spending less on fuel while also shortening transit times.
Dynamic route planning has emerged as the key to route optimization in the modern middle mile. It means taking into account real-time information to update a shipment’s path in a way that reduces costs and shortens transit times. Of course, dynamic route planning requires visibility to use up-to-date information to make routing decisions.
Shippers, 3PLs, and others need to secure middle capacity that meets demand — without letting costs spiral out of control. This is especially important during peak seasons when demand can be volatile and capacity is often tight. The need for capacity and cost management highlights the importance of strong partnerships that help organizations secure reliable, affordable capacity.
Failing to secure capacity might mean missed delivery windows. When you pay too much for middle mile capacity, the cost cuts deeply into your margins and hurts profitability. Striking the right balance between capacity and costs is one of the most important aspects of middle mile shipping — and it’s also difficult to achieve.
Gone are the days of using manual, analog approaches to middle mile management. To remain competitive and to find middle mile success, modern technology is a must-have. As organizations search for the right technology, it’s important that the solutions they choose integrate with their existing systems.
For example, route optimization software and similar tools should integrate with an organization’s WMS or TMS so that team members can access the information they need in a single source of truth (rather than bouncing from tool to tool, UI to UI, in search of data). Success in middle mile logistics is nearly impossible without a fully integrated tech stack.
On-time deliveries are important in the last mile but might be even more important in the middle mile. Why? Because there’s a cascading effect in middle mile logistics. If a middle mile shipment is late, it pushes back the entire timeline, making on-time deliveries in the last mile nearly impossible.
Consistent, reliable deliveries in the middle mile require close coordination between parties and systems. Again, this highlights the need for fully integrated technology to support access to data and communication among the many parties involved in a shipment.
The middle mile is complex and difficult to navigate. Given its inherent challenges, how can shippers master the middle mile? Focus on these six priorities:
Advanced, integrated technology is essential to middle mile success. Your WMS and TMS should integrate with solutions used to manage middle mile logistics. And your middle mile tools should provide real-time time tracking and analytics, allowing for proactive management at each stage of a shipment’s journey.
Use dynamic route planning to avoid traffic issues, severe weather, and other disruptions while maximizing fuel efficiency. It’s also important to build a diverse fleet or work with a middle mile partner that offers a diverse fleet. Different vehicle types give you the ability to pair each shipment with the right vehicle for fast, efficient, and affordable delivery.
The best middle mile programs have a high level of flexibility. Many include on-demand delivery and third-party logistics partners that help scale capacity during peak seasons. Onboarding the right partners allows your organization to pivot quickly when demand surges or when you’re experiencing disruptions.
As noted above, many parties are involved in any middle mile shipment. Create a unified communication system that breaks down any existing silos and that supports real-time visibility. For example, a single-source-of-truth platform can monitor operations in real time to ensure that all middle mile nodes remain aligned.
The middle mile can significantly influence inventory. Use real-time visibility to influence your inventory management to avoid overstocking or stockouts. Regular inventory audits can ensure data accuracy and avoid discrepancies.
If your business experiences regular surges in demand, plan for them. For example, HVAC companies might experience surges during summertime, and solar panel installers might experience high demand at the end of the year when buyers are looking to take advantage of expiring incentives. Again, working with a middle mile partner can give you on-demand access to middle mile capacity and resources when needed. A partner can also help you navigate any unexpected spikes in demand.
The middle mile matters across a wide range of industries. Retailers, construction firms, industrial suppliers, manufacturing companies, 3PLs, logistics and transportation service providers, and others enjoy the following benefits when they master the middle mile:
These benefits and others are available to organizations that invest time and energy into mastering the middle mile. For many organizations, securing the right middle mile partner is the real secret to success.
At FRAYT, we serve as a middle mile partner to organizations across different industries, offering a diverse fleet of vehicles, high-quality drivers, modern technology, and a presence in key markets across the country. If you’re looking to turn middle mile logistics into a competitive advantage, we’re here to help. Ship with us.
