Operating Margin

Operational Strategies That Support Margin Improvement

Improving operating margin requires coordination across people, processes, and transportation partners. While technology plays an important role, long-term gains often come from stronger collaboration and better decision-making across the supply chain.

Strengthen Cross-Functional Collaboration

When supply chain teams share performance data, challenges, and key performance indicators across departments, new cost-saving opportunities often emerge. Procurement, operations, finance, and logistics teams each influence transportation decisions that affect operating margin.

Clear communication across teams helps:

• Identify cost drivers across departments
• Align transportation decisions with financial goals
• Improve accountability across the supply chain
• Reduce delays caused by disconnected workflows

Stronger collaboration creates a more disciplined approach to cost control and performance management.

Use Margin-Focused Decision Making

Not all shipments, customers, or products contribute equally to profitability. Margin-focused planning helps businesses evaluate where transportation investments create the greatest return.

This approach includes:

• Analyzing transportation costs by customer and product line
• Identifying shipments that reduce profitability
• Prioritizing transportation strategies that support high-value freight
• Using data to guide routing, carrier selection, and service levels

With accurate data and clear performance visibility, businesses can make transportation decisions that support sustainable margin growth.

Evaluate External Logistics Support

Some opportunities to improve operating margin come from outside internal operations. Managing transportation assets, technology, and carrier relationships independently can create unnecessary overhead.

Partnering with a third-party logistics provider allows businesses to:

• Reduce the cost of maintaining internal transportation resources
• Access established carrier networks
• Improve shipment efficiency through proven processes
• Scale operations without increasing fixed costs

Leveraging external logistics expertise helps businesses remain flexible while maintaining strong cost control.

Improve Your Operating Margin With a Supply Chain Analysis

Improving operating margin starts with understanding where transportation and logistics costs impact profitability. A structured supply chain analysis helps identify inefficiencies, reduce unnecessary expenses, and uncover opportunities to strengthen financial performance.

Complete the form below to connect with an experienced logistics professional who can review your current transportation strategy and identify opportunities to improve cost control and margin performance.

Independent research shows that stronger supply chain and transportation management can deliver measurable results, including:

• 25 to 50% reduction in total supply chain costs through improved planning and carrier management
• 25 to 60% reduction in inventory holding costs supported by more predictable shipment performance
• 25 to 80% increase in forecast accuracy with improved visibility and coordination
• 30 to 50% improvement in order fulfillment cycle time through more efficient logistics execution
• Up to 20% increase in after-tax free cash flow driven by disciplined cost control

A focused logistics review provides the insight needed to make informed decisions that support consistent operating margin improvement.