Logistics and Transport in the Supply Chain: Stakes, Modes and Best Practices

Logistics and transport play a major role in Supply Chain performance. They ensure the physical movement of goods, from the supplier to the end customer, while ensuring the quality, safety, speed and profitability of flows. Faced with globalisation, the rapid evolution of technologies and the increasingly high requirements of consumers in terms of deadlines and service, logistics and transport actors must innovate and adopt sustainable and agile practices.

In this article, we will define the stakes of logistics and transport, present the main modes of transport and optimisation strategies, and highlight the trends and best practices to gain efficiency and competitiveness.

1. The stakes of logistics and transport

• Customer satisfaction
• Meet delivery deadline and reliability requirements.
• Reduce stock disruptions and ensure product traceability for quality service.
• Cost optimisation
• Choose the most suitable modes of transport and routes to reduce costs (fuel, tolls, handling).
• Avoid additional costs related to delays, preparation errors or returns.
• Risk control
• Secure flows against contingencies (weather, strikes, accidents, geopolitical events).
• Protect goods (theft, damage) and comply with standards (customs regulations, ADR for hazardous materials, etc.).
• Societal and environmental responsibility
• Reduce the carbon footprint via more virtuous transport solutions (multimodal, electric, LNG, etc.).
• Improve energy efficiency, promote sustainable urban logistics (optimised last-mile delivery).
• Technological integration
• Leverage digital tools (TMS, WMS, IoT, AI, blockchain) to gain visibility, responsiveness and reliability.
• Develop collaboration with partners (suppliers, carriers, customers) through data-sharing platforms.

2. The main modes of transport

Road

Most used mode of transport for proximity distribution and last mile.

Advantages: flexibility, speed over short and medium distances, dense geographical network.

Disadvantages: traffic saturation, costs related to fuel and tolls, high environmental impact.

Rail

Suitable for transporting large volumes over long distances.

Advantages: lower ecological impact, large capacity.

Disadvantages: lack of flexibility, dependence on infrastructure and schedules, sometimes longer deadlines.

Maritime

Indispensable for international trade (containers, bulk).

Advantages: cost per tonne-kilometre among the lowest, high loading capacity.

Disadvantages: longer transit times, port constraints, weather dependence.

Air

Useful for high-value-added or urgent goods (high-tech, critical spare parts).

Advantages: speed, global network.

Disadvantages: high cost, significant carbon impact, restrictions on certain products (hazardous, bulky).

River

Operated along navigable waterways (rivers, canals).

Advantages: economical and low-pollution solution for bulk or containers, no traffic jams.

Disadvantages: dependence on geography, relative slowness, seasonality (low water).

Multimodal

Combination of several modes (rail-road, sea-road, river-road, etc.) to take advantage of the assets of each.

Allows costs and carbon footprint to be reduced while maintaining a certain flexibility.

3. Logistics and transport optimisation strategies

Volume consolidation

Group flows (full loads, consolidated freight) to benefit from economies of scale.

Outsource logistics to a service provider (3PL, 4PL) to pool volumes and reduce unit costs.

Cross-docking

Reduce or eliminate the intermediate storage phase in the platform.

Goods arriving at a distribution centre are immediately sorted and shipped to their final destinations.

Last-mile management

The last delivery segment (often in urban areas) can represent a significant share of the total cost (up to 20-40%).

Develop alternatives (collaborative delivery, pick-up points, clean vehicles) to limit nuisances and costs.

Reverse logistics

Management of product returns, recycling, reconditioning.

Optimise the collection of packaging and waste for a circular economy.

Lean and Just-in-Time approach

Minimise stocks and waiting times by coordinating production, distribution and transport as close as possible to demand.

Reduce waste (immobilisation time, overproduction).

Collaboration and pooling

Develop partnerships or groupings to pool distribution networks (e.g. pooling between manufacturers).

Share data and anticipate demand thanks to collaborative platforms, avoiding empty trips.

4. Tools and technologies for logistics and transport

TMS (Transport Management System)

Planning and optimisation of routes (routing), carrier management, transport cost monitoring, indicator monitoring (OTD, CO2).

Automatic calculation of itineraries and constraints (delivery windows, traffic restrictions).

WMS (Warehouse Management System)

Warehouse management tool (receipt, storage, order preparation, shipment).

Interface with the TMS to organise pickups and deliveries.

IoT and real-time tracking

GPS, RFID, GPRS sensors to track vehicle location, goods temperature, transport conditions.

Feeding a customer portal allowing knowledge of the ETA (Estimated Time of Arrival).

Big Data and AI

Predictive analysis to adjust traffic forecasts, identify flow optimisation patterns, prevent risks.

Chatbots to inform customers about delivery status, guide carriers.

Collaborative platforms

Connection of shippers and carriers, freight exchanges, co-loading systems.

Fluidification of information exchanges, reduction of empty loading rate.

5. Future challenges and trends

Green Logistics

Reducing the carbon footprint, using cleaner vehicles (electric, hydrogen, biogas), multimodal transport.

Eco-design of packaging, grouped transport, sustainable urban logistics.

Logistics 4.0

Automation via robotics (AGV – Automated Guided Vehicles, drones), smart warehouses, automated warehouses.

Integration of augmented reality (visual assistance for order pickers) and blockchain (traceability).

Customisation and speed

Explosion of e-commerce: increasingly short delivery times (same day, 2 hours), growth of click & collect.

Pressure on the Supply Chain to reconcile speed, cost and environmental impact.

Risk management and resilience

Breakdowns, natural disasters, political instability: strengthen responsiveness by multiplying transport scenarios and diversifying sources.

Development of nearshore or onshore logistics to reduce dependence on distant flows (revival of local production).

Cross-border e-commerce

Increase in international online commerce.

Adaptation to customs regulations, management of international returns, transparency of delivery costs.

6. Best practices to improve logistics and transport

Make forecasts more reliable

Collaborate with sales and marketing services to anticipate peaks or troughs in activity.

Use statistical or AI forecasting methods.

Map flows

Analyse origins, destinations, volumes, frequencies.

Identify critical links, propose optimisation scenarios.

Select the right partners

Choose carriers and logistics service providers based on multiple criteria (cost, reliability, geographical coverage, CSR).

Negotiate framework contracts, define performance indicators (service rate, responsiveness, carbon footprint).

Improve visibility

Share information on the order and shipment tracking with customers and the various actors.

Set up real-time tracking to quickly detect delays or anomalies.

Balance costs, quality and environmental impact

Evaluate the TCO (Total Cost of Ownership), including externalities (pollution, congestion), and not only the price of transport.

Integrate CSR criteria (CO₂ emissions, social conditions) in calls for tender.

Engage in a continuous improvement approach

Set up KPIs (on-time delivery rate, incident rate, cost per km or per tonne, etc.).

Regularly analyse gaps, identify pockets of savings or productivity, test innovations (autonomous vehicles, drones, etc.).

7. In summary

Logistics and transport constitute the backbone of the Supply Chain, guaranteeing the availability of products in the right place, at the right time, and at the optimal cost. In a context of globalisation and digitalisation:

Logistics professionals must orchestrate modes of transport (road, rail, sea, air, river) and deploy strategies (consolidation, cross-docking, pooling) to optimise flows.

Companies rely on tools (TMS, WMS, IoT, Big Data) to gain visibility, responsiveness and reliability.

Reducing the environmental footprint and inter-company collaboration have become priorities to meet societal and regulatory challenges.

For procurement and supply chain professionals and students, it is crucial to:

Understand the constraints and opportunities of each mode of transport (costs, deadlines, ecological impact),

Know how to design efficient logistics schemes aligned with the company’s strategy (storage, distribution, customer service),

Master digital devices (TMS, WMS, tracking, analytics) and cultivate cross-functionality with other functions (production, sales, finance, CSR),

Integrate a continuous improvement approach, by regularly adjusting transport plans and logistics organisation according to feedback and market developments.

By reconciling efficiency, sustainability and customer satisfaction, logistics and transport reinforce competitiveness and value creation within the supply chain.