Retailers reap benefits from network consolidation, a key optimisation strategy

Sep 1, 2025

Retail supply chains are facing unprecedented pressures: Fragmented carrier bases, duplicated routes, inconsistent service, and spiralling transport costs have all combined to make logistics one of the toughest challenges for retailers today.

At the same time, expectations around sustainability and speed of delivery continue to rise – and tightening consumer spending is pressuring retailers’ margins.

Claire Malcolmson, group GM of customer and product strategy at Netlogix, offers a clear solution: “Retailers who are working with multiple carriers are creating a fragmented base with different processes, different systems, and duplication across routes. Trucks are often not filled to capacity, fostering inefficiency.

“To stay competitive, retailers need to rethink how goods move through their supply chain,” she explains.

The most effective starting point for this is network consolidation, and one of the key optimisation strategies is to bring multiple freight flows and carriers’ available capacity into a more unified, orchestrated system. It’s a strategy that goes beyond efficiency. Done well, consolidation helps retailers cut costs, boost reliability, and improve service for customers. And it is more eco-friendly.

At the heart of network optimisation lies freight consolidation – pooling shipments from multiple shippers and products to route-optimised drop locations creates fewer, fuller truckloads.

“Freight consolidation becomes a powerful tool for network optimisation,” explains Malcolmson. “It enables retailers to streamline logistics, reduce waste, and improve service levels. Essentially, it means trucks are running full, not half empty – and that makes a huge difference to costs and sustainability.”

The benefits are tangible. Retailers working with Netlogix have seen significant transport savings that flow straight to the bottom line. Just as important, consolidation eliminates “empty kilometres,” cutting emissions and helping retailers meet growing sustainability targets.

Optimised deliveries and store operations

Consolidation doesn’t just save money on transport; it can change how stock arrives in stores. By scheduling earlier or specifically targeted time slot deliveries into shopping centres, retailers gain more control over planning and resource allocation.

“Earlier deliveries allow better planning of delivery routes and staff shifts,” says Malcolmson. “Store teams can restock before opening hours, which means products are on shelves when customers arrive. That’s a smoother experience for shoppers and staff.”

The ripple effects are obvious:

  • Improved store operations: Shelves are stocked without interfering with customers, creating a better shopping experience.
  • Reduced congestion: Early deliveries avoid peak-hour traffic, leading to faster, more predictable turnaround times.
  • More sales time: Stores start trading with shelves already full, maximising the sales cycle across the day.

Netlogix currently delivers to more than 124 shopping centres across Australia, with the vast majority completed before 7am. This consistency helps retailers operate more efficiently, while also delighting customers with better product availability.

Cutting waste and complexity with smarter insights

One of the biggest inefficiencies in retail supply chains comes from the fact that many trucks run half empty. “Retailers using multiple carriers often aren’t filling trucks to maximum capacity,” Malcolmson notes. “That’s wasted space – and retailers are still paying for it.”

A major retailer recently experienced this problem first-hand, with multiple carriers picking up goods, each having their own trucks optimised to their best ability. But with variable freight volumes, some trucks were leaving empty or half empty, driving up costs and creating congestion and confusion on site. On top of that, the retailer had limited visibility into overall logistics spend and multiple customer service touchpoints across different carriers.

Netlogix stepped in with a freight consolidation strategy backed by technology. “We built them reporting tools to give better insights and transparency,” says Malcolmson. “That meant they could make informed, proactive decisions. The result was significant savings, streamlined deliveries, and more consistent service.”

Technology plays a vital role in making such consolidation work and making the key milestones of the freight flows visible. Netlogix provides retailers with the visibility tools to see across their network, identify inefficiencies, and take action.

“Visibility is critical,” she says. “Retailers need data to know where waste is happening, how carriers are performing, and how to optimise. With greater insights, they can align transport with business needs instead of reacting to problems.”

This shift – from reactive logistics to proactive, data-driven supply chain management – helps retailers stay ahead of challenges like rising fuel costs, driver shortages, and sustainability pressures.

Sustainability benefits

While cost savings grab attention, sustainability is another equally important driver of network consolidation. Fuller trucks mean fewer trips, lower emissions, and less congestion.

“Sustainability pressures are rising for retailers,” says Malcolmson. “Consolidation addresses both. By reducing waste and making deliveries more efficient, retailers can lower their carbon footprint while also saving money.”

For many retailers, this dual benefit is a game-changer. It allows them to meet both financial goals and environmental commitments, without compromising on service.

Netlogix is a Certified B Corporation, attaining a global standard that recognises businesses working to be better, balancing purpose with profit. Attaining B Corp Certification is a testament to Netlogix’s commitment to meeting high standards of environmental and social responsibility, Malcolmson says. “When you partner with us, you’re choosing a trusted leader with a proven sustainable approach to managing freight.”

Freight transport is one of the major sources of global emissions and has significant environmental impacts. “We aim to ‘move more with less’ and reduce empty kilometres across the freight networks. The community benefits from reduced emissions and fewer trucks on the road, while unlocking cost, service, and asset efficiencies in the supply chain for both shippers and carriers.”

The bottom line

Retailers know their supply chains are under strain. Costs are climbing, service is inconsistent, and customers expect more. Network consolidation offers a practical, proven way forward.

With fewer, fuller trucks, earlier deliveries, and smarter insights, retailers can cut waste, save money, and deliver a better shopping experience.

“Retail has a problem,” Malcolmson says. “The challenges of multi-carrier strategies or rigidity of the single carrier capacity and network configuration, empty trucks, and rising costs are out of control. But the benefits of network consolidation are clear: Better insight, service, sustainability, and reduced costs. It’s about creating a smarter, more efficient, and more resilient supply chain.”