Strategies for Reducing Transportation Costs in Supply Chains: A Case Study of Food Distribution Companies

Abstract

In an increasingly complex and cost-sensitive global supply chain landscape, transportation expenses remain a dominant component of overall logistics costs particularly within the food distribution sector, where perishability and regulatory compliance pose additional challenges. This study explores practical strategies for reducing transportation costs in food supply chains through a multi-case study of three food distribution companies of varying sizes and operational models. Adopting a qualitative research design, the study employed semi-structured interviews, document analysis, and thematic data analysis to examine current transportation setups, cost drivers, and implemented cost-reduction strategies. Key findings reveal route optimization, shipment consolidation, collaborative delivery models, and digital tools; such as Transportation Management Systems (TMS) are among the most effective strategies. However, their success is heavily dependent on organizational size, technological readiness, and market structure. The study also found that cost-reduction initiatives can enhance broader supply chain performance by improving delivery reliability, inventory turnover, and service levels when aligned with strategic planning. Challenges such as implementation costs, data accuracy, and resistance to change were noted, particularly among small and medium enterprises (SMEs). The research contributes to both theory and practice by offering industry-specific insights as well as recommendations for logistics managers and policymakers aiming to enhance the efficiency and sustainability of food supply chains.