Logistics Cost Optimization: Pick the Cheapest Provider on Your Contracts

The outcome

Dispatch stops defaulting to habit. Each shipment is routed to the cheapest provider that still clears the delivery promise, using the contract rates you actually negotiated — so freight spend drops without breaching SLAs.

How teams use it

Contract-rate scoring

Providers are compared on the monthly contract rates negotiated with each vendor, not generic list prices, so the recommendation reflects real cost.

SLA-safe selection

Only providers that can meet the channel's delivery promise are considered, so cheaper never means late.

Lane-aware decisions

Serviceability and observed performance per lane feed the choice, avoiding partners who miss on specific routes.

Spend visibility

Every routing decision is logged with its cost basis, giving finance a clear view of freight spend by provider and lane.

How the workflow runs

Shipment ready. Destination, weight and the promised delivery date are read from the order.
Score providers. Eligible carriers are ranked on your monthly contract rates and their ability to meet the SLA.
Recommend cheapest. The lowest-cost provider that clears the promise date is recommended or assigned.

Fastrack. Fastrack cut exception response time by 75% moving from manual checking to automated monitoring — the same speed advantage applies to catching a mis-routed or delayed shipment before it breaches SLA.

Where customers use it

Customers run this template across Delhivery, Blue Dart, DTDC, Shiprocket, ClickPost and Aramex as their logistics providers, spanning India, the Middle East and the GCC. Additional providers can be added on request.

Questions we get asked

How does the logistics cost optimization workflow choose a provider?

For each shipment it reads the destination, weight and promised delivery date, filters to providers that can meet the SLA, and ranks them by your monthly contract rates — recommending the lowest-cost option that still clears the promise date.

Does it use contract rates or list prices?

Contract rates. The scoring is based on the monthly rates negotiated with each logistics vendor, held in a reference table, so the recommendation reflects what you actually pay rather than published pricing.

Can it optimise for speed instead of cost?

Yes. The same structure can prioritise delivery time, RTO risk or committed volumes with a particular carrier, depending on how the workflow is configured.

Route every shipment on cost and SLA

See the logistics template score your carriers on contract rates and pick the cheapest that meets the promise.

Book a demo →