Transport Networks and Finding the Right Transport Providers
Benchmarking & KPI Management for Success
Transport is one of those supply chain functions that only gets attention when something goes wrong.
A delivery misses a cut-off and a customer escalates. A distribution centre runs out of dock space because linehaul arrives late. Freight invoices spike without explanation. One carrier performs brilliantly in metro areas but struggles in regional lanes. Suddenly, transport is no longer a background function—it is the business.
Across Australia and New Zealand, freight networks are becoming harder to manage. Costs are rising, service expectations are tightening, and disruption is more frequent. Many organisations are also dealing with more complex delivery profiles: e-commerce fulfilment, store replenishment, direct-to-site deliveries, bulky items, time-window commitments, reverse logistics and heightened compliance requirements.
In this environment, the difference between average and excellent transport performance often comes down to three things:
- A transport network designed to suit your demand and service promise
- Transport providers selected objectively, based on capability and fit (not familiarity)
- Benchmarking and KPI management embedded into day-to-day operations and governance
This article walks through how to build a transport network that performs, how to select the right providers, and how to manage success using benchmarking and KPIs—without turning the function into a spreadsheet contest. It also outlines how Trace Consultants can help organisations in Australia and New Zealand improve transport outcomes with practical, independent support.
Why Transport Networks Matter More Than Ever
Transport is not just a cost line. It is a service engine, a risk exposure and, increasingly, a brand experience.
When transport networks are designed and managed well, organisations can achieve:
- Lower freight cost per unit without sacrificing service
- Higher DIFOT (Delivered In Full, On Time) and fewer customer escalations
- Better capacity certainty through seasonal peaks
- Reduced damage and claims
- Improved dock and warehouse flow (less congestion and rescheduling)
- More reliable inventory positioning and replenishment cycles
- Better data and visibility for decision-making
When networks are not designed or managed well, the opposite happens: operational workarounds grow, costs become opaque, service performance erodes, and the organisation becomes dependent on a few “hero operators” who keep things moving through sheer effort.
Transport networks deserve structured attention because they shape performance outcomes for years. Yet many organisations treat transport as something to “shop” every few years on rates alone, rather than designing a model that can sustain service and cost performance long term.
What Is a Transport Network, Really?
A transport network isn’t just which carrier moves freight from A to B. It is the complete set of decisions and structures that determine how freight flows through the business.
A transport network includes:
- The lanes and flows (DC to store, DC to customer, supplier to DC, inter-DC, returns)
- Service tiers (standard, express, timed, same-day, regional, remote)
- Mode choices (linehaul, courier, parcel, rigid/tautliner, containerised, dedicated fleet)
- Consolidation and deconsolidation points (cross-docks, hubs, metro depots)
- Cut-offs and lead times (how transport interacts with warehouse operations)
- Provider mix (single carrier, multi-carrier, primary/secondary, specialist providers)
- Governance and accountability (who owns decisions, escalation, improvement)
- Commercial structure (contracts, rate cards, minimums, fuel, accessorials)
- Performance management (KPIs, reporting cadence, claims process, root cause)
When these elements are aligned to the business strategy, transport becomes predictable. When they are not aligned, transport becomes a daily negotiation.
The Most Common Triggers for Reviewing a Transport Network
Organisations don’t usually set out to redesign their network for fun. It happens when pressure builds. Typical triggers include:
1. Cost Growth Outpaces Sales or Volume
Freight costs rise due to:
- accessorial charges creeping in
- poor consolidation
- inefficient lane allocations
- under-utilised vehicles
- non-compliant bookings
- fuel or surcharge complexity
Cost blowouts are often symptoms of network design and governance issues, not just carrier rates.
2. Service Performance Has Become Unreliable
Service declines show up as:
- late deliveries
- missed timed windows
- increased damaged freight
- rising customer complaints
- higher re-delivery costs
This often indicates capability mismatch between service requirements and provider model.
3. Growth, Channel Shift or SKU Complexity
New product ranges, new customer segments, and growth in direct-to-consumer fulfilment often break legacy networks.
4. Carrier Dependency Risk
Relying heavily on one provider can become a strategic risk, particularly during peak periods or industrial disruptions.
5. M&A, Footprint Changes or Network Moves
Warehouse moves, new facilities, or acquisitions often require lane redesign and provider reallocation.
When these triggers appear, the right approach isn’t to “retender everything immediately.” It’s to start by understanding the network and defining what “good” looks like, before going to market.
Finding the Right Transport Providers: Start With Fit, Not Familiarity
Provider selection in transport can be surprisingly subjective. Many organisations default to the carriers they know, or those that have “always been there.” But transport markets have evolved. Capability, technology, footprint, fleet profile and service models differ widely.
Selecting the right transport providers starts with a clear definition of:
- Your customer promise (what you must deliver, and when)
- Your freight profile (pallets, parcels, bulky, hazardous, temperature-controlled)
- Your lane structure (metro vs regional vs remote, density, frequency, variability)
- Your operational realities (dock constraints, cut-offs, packaging, loading)
- Your risk appetite (single source vs multi-carrier, contingency requirements)
Only once these are clear does “who is the best provider” become an objective question.
The Provider Selection Process That Actually Works
A strong provider selection process is structured, comparable and evidence-based. In practice, it usually includes these steps:
Step 1: Segment Your Freight and Lanes
Not all freight is equal. A good selection process segments:
- parcel vs pallet
- metro vs regional vs remote
- fast-moving vs low-frequency
- high-value vs low-value
- fragile vs robust
- timed vs standard
This segmentation enables targeted selection rather than forcing a single provider to do everything.
Step 2: Define Service Standards in Plain Language
Service definitions must be unambiguous, including:
- lead times by lane
- time window compliance requirements
- POD requirements
- claims and damage thresholds
- escalation processes
- booking cut-offs
- exception notification expectations
If you can’t describe service clearly, you can’t select providers fairly—or manage them effectively later.
Step 3: Run a Capability Assessment (Not Just a Rate Comparison)
Rates matter. But capability mismatch costs more than a higher linehaul rate.
Capability assessment should cover:
- network footprint and depot coverage
- linehaul schedules and frequency
- fleet profile and equipment availability
- subcontracting models and governance
- peak capacity approach
- safety and compliance maturity
- claims performance and handling processes
- technology and visibility capability
- customer service model and escalation response
Step 4: Align Commercial Structure to Behaviour
Commercial terms should encourage the behaviours you want:
- incentives for service and compliance
- clear treatment of accessorials
- transparent fuel mechanisms
- controls for rate variation over time
- clarity on minimums and volume commitments
Many transport relationships deteriorate not because a provider “gets worse,” but because the contract structure creates constant friction.
Step 5: Validate Through Lane Modelling
Where possible, compare providers on:
- total cost-to-serve across representative lanes
- service feasibility against your cut-offs
- operational constraints (dock hours, trailer swap models, equipment)
This moves the evaluation beyond rate cards.
Transport Benchmarking: What It Is (and What It Isn’t)
Benchmarking is one of the most powerful tools for improving transport performance—when done properly.
Benchmarking is not:
- asking a carrier if your rates are “competitive”
- comparing your rate card line-by-line with another organisation without context
- using generic industry averages that don’t reflect your lane mix
Good benchmarking is:
- a structured comparison of cost and performance relative to similar networks
- adjusted for volume density, distance, freight profile and service requirements
- used to identify improvement opportunities, not just negotiate harder
What to Benchmark in a Transport Network
Cost benchmarking can include:
- cost per pallet / carton / consignment
- cost per kilometre by lane
- cost-to-serve by customer segment or region
- accessorial and surcharge incidence
- claims cost and redelivery cost
Service benchmarking can include:
- DIFOT by lane and service tier
- on-time pickup performance
- damage rates
- exception rates (missed scans, lost freight)
- POD compliance times
- customer complaint incidence
- rework and rescheduling frequency
Operational benchmarking can include:
- dock-to-dispatch cycle time impacts
- trailer utilisation and cube utilisation
- consolidation rates
- booking compliance and despatch discipline
Benchmarking should lead to a short list of actionable initiatives, not a “report that sits on a shelf.”
KPI Management: Where Transport Relationships Win or Lose
Once providers are selected, performance management is where value is either realised or lost.
Many organisations have KPIs, but not KPI management. They produce reports, but don’t drive improvement. Or they manage performance through blame, which degrades relationships and encourages defensive behaviour.
High-performing transport organisations treat KPI management as a structured operating rhythm.
The Anatomy of Strong KPI Management
1. Choose KPIs That Influence Behaviour
Too many KPIs dilute focus. A strong set typically includes:
Service KPIs
- DIFOT (or on-time delivery) by lane and tier
- on-time pickup
- scan compliance / milestone visibility
- proof of delivery time compliance
Quality KPIs
- damage rate
- claims turnaround time
- loss incidence
Cost KPIs
- cost per unit (with clear unit definitions)
- accessorials as a percentage of spend
- invoice accuracy and dispute rate
Responsiveness KPIs
- exception notification timeliness
- time-to-resolution for escalations
- customer service response times
2. Define KPIs Precisely
A KPI that can be interpreted two ways will be argued two ways.
Define:
- time measurement basis (dispatch time vs booked time vs pickup time)
- what counts as “on time” (grace period, business hours, customer availability)
- what constitutes a “delivery attempt”
- how damages are attributed
- how exceptions are classified
Precision reduces friction and increases accountability.
3. Build a Cadence of Reviews
A strong cadence often includes:
- weekly operational reviews for exceptions and immediate fixes
- monthly performance reviews for trend analysis and root cause
- quarterly business reviews for strategic improvement and contract alignment
Without cadence, KPIs are just numbers.
4. Separate Root Cause from Blame
Performance problems are rarely caused by one party alone.
A missed delivery window could be:
- late linehaul
- poor booking data
- warehouse dispatch delays
- customer site constraints
- packaging failures
KPI management should drive joint root cause investigation and improvement actions.
5. Tie Performance to Commercial Outcomes (Carefully)
Incentives and penalties can work, but they must be:
- measurable
- fair
- controllable by the provider
- balanced
Overly punitive models drive gaming and degrade collaboration.
Building a Provider Portfolio: Single Carrier vs Multi-Carrier
There is no universally correct model. The right approach depends on network complexity, volume density, service requirements and risk appetite.
Single Carrier Models
Pros
- simplicity
- fewer interfaces
- consolidated negotiation
Risks
- dependency
- limited competitive pressure
- reduced flexibility in peak periods
Multi-Carrier Models
Pros
- resilience
- best-fit capability by segment
- competitive tension
Risks
- complexity
- governance burden
- risk of inconsistent customer experience
A common high-performing approach is:
- one or two primary carriers per segment or region
- secondary carriers for contingency and peak cover
- specialist providers for niche requirements (remote, bulky, temperature-controlled, timed)
This model balances simplicity and resilience.
The Hidden Value: Linking Transport KPIs to Warehouse and Customer Outcomes
Transport doesn’t exist in isolation. Some of the biggest gains come from aligning transport with warehousing and customer service.
Examples include:
- improving despatch discipline to reduce missed pickups
- adjusting cut-off times to improve linehaul performance
- slotting and loading practices that reduce damage
- packaging standards that reduce claims
- load building that improves utilisation and reduces cost per unit
When transport KPIs are linked to upstream warehouse metrics and downstream customer experience metrics, improvement becomes far more powerful—and far less political.
How Trace Consultants Can Help
Trace Consultants supports organisations across Australia and New Zealand to design transport networks, select transport providers objectively, and implement benchmarking and KPI management that drives sustainable outcomes.
We help clients move from reactive transport management to structured performance and cost control—without adding unnecessary bureaucracy.
Independent, Vendor- and Carrier-Agnostic Support
We are not a carrier, broker or software vendor. That independence allows us to:
- assess options objectively
- challenge assumptions
- focus on what fits your operation and service promise
Transport Network Review and Strategy
We can help define:
- the right transport network structure for your lanes and demand profile
- segmentation strategies for freight and service tiers
- risk and resilience approaches (capacity, contingency)
- service promise alignment and feasibility testing
Provider Selection and Go-To-Market Support
Trace Consultants can support:
- market scanning and capability assessment
- tender design and evaluation frameworks
- commercial structure design (including accessorial controls and governance)
- contract and KPI schedule development
- transition planning and implementation governance
The goal is not just to pick “the cheapest carrier,” but to build a provider portfolio that performs.
Benchmarking and Cost-to-Serve Analysis
We help clients benchmark:
- rates and cost drivers in context
- accessorial incidence
- lane density and utilisation opportunities
- cost-to-serve by segment and region
This provides a fact base for negotiation and improvement—without relying on generic industry averages.
KPI Management Operating Rhythms
We support clients to implement practical performance management including:
- KPI definition and measurement design
- reporting and dashboarding requirements
- weekly/monthly/quarterly review cadences
- root cause and continuous improvement frameworks
- escalation pathways and governance structures
This is where savings and service improvements become “sticky.”
Building Internal Capability
Sustainable transport improvement requires internal capability. Trace Consultants can help uplift:
- transport governance maturity
- team capability and role clarity
- operating procedures and decision rights
- performance management routines
This reduces reliance on individuals and creates a repeatable approach.
Final Thoughts
Transport networks and provider relationships succeed when they are designed and managed deliberately.
Benchmarking gives organisations a fact base. KPI management turns that fact base into action. Provider selection determines whether capability matches your service promise. And network design sets the foundation that everything else sits on.
For organisations across Australia and New Zealand, the opportunity is significant:
- transport is often a major spend line
- performance is highly visible to customers
- small improvements compound quickly over time
The best outcomes come when organisations stop treating transport as a periodic procurement event and start treating it as an operating system: designed, governed, measured and improved continuously.
If your transport costs feel opaque, your service performance feels inconsistent, or your provider relationships feel reactive, it may be time to step back and redesign the way transport is managed—starting with the network, the provider portfolio and the KPIs that drive success.
