How Distributors Use Lean Logistics to Slash Delivery Costs

In episode 55 of Wholesale & Distribution with Fexingo, Lucas and Luna explore how distributors are cutting delivery costs by rethinking their logistics networks. They look at one mid-sized plumbing distributor in the Midwest that consolidated its pool of parcel carriers from seven to two, renegotiated zone-skipping agreements, and used a transportation management system to optimize route density. The result: a 22% drop in outbound freight spend per order over nine months, while maintaining a 97% on-time delivery rate. Lucas explains how the company used a simple cost-per-stop metric to identify underperforming routes and why shifting from next-day to two-day delivery for non-urgent orders freed up capacity. Luna asks about the pushback from sales reps worried about losing customers to Amazon Business. The episode also covers how the distributor used delivery-time data to create a tiered shipping menu, giving customers a choice between free standard and paid expedited. A practical look at logistics as a competitive lever, not just a cost center. #DistributorLogistics #LeanLogistics #DeliveryCosts #TransportationManagement #ZoneSkipping #RouteOptimization #FreightSpend #ParcelCarriers #MidwestDistributor #OnTimeDelivery #ShippingMenu #TieredShipping #AmazonBusiness #SalesPushback #Business #SupplyChain #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo