Selected engagements from Parth Davé’s supply chain leadership and advisory experience.
Engagement Overview
A leading Canadian home renovation and remodeling organization experienced rapid e-commerce acceleration during COVID-19. Order volumes surged. Delivery expectations tightened. Carrier contracts were nearing renewal.
Freight costs were rising while margins compressed.
What appeared to be a transportation pricing issue was, in fact, a decision architecture problem.
Business Challenge
As demand scaled, fulfillment logic did not evolve with it.
Last-mile costs increased. Accessorial charges accumulated. Delivery performance varied by region. KPI visibility focused on outcomes rather than controllable drivers.
The organization was preparing to renegotiate carrier contracts without clarity on the decision rules generating freight spend. This pattern is common when growth outpaces governance.
Structural Diagnosis
Network and ERP analysis revealed three structural misalignments:
- Fulfillment location selection relied on outdated routing assumptions rather than demand-density logic.
- Accessorial exposure was not explicitly mapped, weakening negotiating leverage.
- Performance metrics tracked cost results, not routing decisions.
Freight was not the root problem. It was absorbing misaligned fulfillment rules.
When routing logic lacks clarity, transportation cost becomes the shock absorber.
Decision Architecture Redesign
Before renegotiation, the governing logic was rebuilt.
Routing parameters were redesigned using population and order concentration modeling. Accessorial drivers were isolated and quantified. KPIs were restructured to link routing decisions directly to contract exposure.
Ownership and review cadence were formalized to prevent drift. The focus shifted from negotiating rates to governing routing rules, ensuring cost control scaled with growth.
Execution Adjustments
With structural clarity established, systems were aligned to the redesigned rules. ERP ship-from logic was recalibrated to reflect demand density, and fulfillment node utilization was optimized. Carrier negotiations targeted high-impact surcharge categories identified during diagnostic analysis.
Data discipline strengthened reporting accuracy. Structured KPI dashboards in Power BI institutionalized visibility and control.
Execution followed architectural correction, not the reverse.
Business Impact
- 7% year-over-year reduction in last-mile freight cost
- Faster and more consistent delivery performance
- Improved margin stability during demand volatility
- Clear visibility into controllable cost drivers
For growing organizations, this translates into scalable cost control without sacrificing speed to market.
Governance Lens Applied:
Cost reflected flawed routing logic, not pricing alone. Routing and contract rules were redesigned first. Performance improved once governance was embedded.
If Freight Costs Keep Rising as You Grow
If increasing last mile spend, delivery variability, or recurring accessorial exposure feel familiar, the issue may not be carrier pricing. It may be routing governance.
A structured Supply Chain Health Check can help clarify which fulfillment rules and contract exposures are driving freight outcomes and where structural correction is required.