Actionable Tactics to Optimize the Middle Mile

The middle mile might be tough, but it’s also where you can make big gains. 

In Part 1, we explored what the middle mile is, why it’s historically rigid and opaque, and how emerging technology is changing that. 

Now, let’s get practical.

In Part 2, Troy Lester (co-founder of WARP) dives deeper into:

• Top strategies to improve the middle mile

• How to leverage LTL data and cross-docking

• Why frequent, data-driven RFPs can be a catalyst for continuous improvement

By the end, these insights will help you think through your approach to the middle mile - and give you practical ideas on where to start.

Let’s dive in. 👇

Table of Contents

1. Where to Begin: LTL & Network Basics

   • How do you identify overcharging in LTL invoices?

   • Why is comparing quoted vs. invoiced amounts so critical?

2. Cross-Docks & Design

   • How do cross-docks unlock more routing permutations?

   • Is the extra touchpoint worth the risk?

3. KPIs & Creative Strategies

   • Which metrics move the needle beyond on-time delivery?

   • How can maximizing truck utilization also boost sustainability?

4. RFPs & Common Mistakes

   • Why aren’t annual, price-only RFPs enough?

   • How can frequent RFPs drive innovation?

5. Top 3 Quick Wins

   • Why rethink traditional “FTL vs. LTL” models?

   • In what ways can cross-docking and consolidation cut costs?

Connect with WARP on LinkedIn and their website.

This conversation has been edited for length and clarity. If you're short on time, skip to the TL;DR section for key takeaways.

1. Where to Begin: LTL & Network Basics

Where should a logistics operator at a large retailer begin when optimizing the middle mile? What data is most important?

Troy Lester: There’s no one-size-fits-all solution in logistics. However, I see one universal opportunity that most companies haven’t fully explored: evaluating less-than-truckload (LTL) data. We’re often viewed as an LTL alternative, so we see a lot of instances where traditional LTL carriers overcharge. It’s so common that entire auditing services exist just to review LTL invoices—something unimaginable in consumer deliveries like food or e-commerce.

• Common Problem: Overcharges can range from 10% to even 20%. If you’re spending millions on LTL, that’s huge. It can stem from incorrect freight classification (e.g., saying a shipment is class 160 vs. 250) or from “bad actors” adding surcharges.

• What to Do: Compare the quoted vs. invoiced amounts. Track time in transit. Look at providers who can replicate your LTL routes with fewer touches and congestion. Make sure you have accurate upfront data (pallet counts, weights, dimensions) to reduce billing surprises.

Almost every transportation operator should check this as low-hanging fruit. It can lead to immediate savings and better service.

2. Cross-Docks & Design

What about other parts of the network, like 3PL cross-docking? Are there strategies to optimize that side of operations?

Troy Lester: Bringing a third-party cross-dock into your network comes with risks—such as security and the fact that you don’t control the facility—but without cross-docks, you’re operating with one hand tied behind your back.

• Why Cross-Docks Matter: They allow more robust routing permutations and the chance to consolidate freight, which can reduce costs and potentially speed up deliveries (especially when combining shipments).

• Transparency & Tech: You need visibility into when freight arrives and leaves the cross-dock, plus documentation (like photos) to ensure pallets remain undamaged and that you can identify precisely where any problem occurred.

• Trade-Off: It’s one extra touchpoint, so you need real-time tracking and a clear chain of custody to feel confident it’s worth the risk. But unlocking that added flexibility can be a huge benefit.

How do cross-docks impact speed, cost, and reliability? Isn’t adding an extra step a risk?

Troy Lester: Yes, another touch can be risky. But if it aligns with your transportation goals—offering lower costs or near-similar speed—and you have full transparency, it can be worth it. We give customers clear tracking data (inbound/outbound timestamps, photos before and after), so they see exactly what happens to their pallets.

• Speed vs. Cost: Speed used to dominate priorities, but rising costs and sustainability concerns make consolidation more appealing. A well-managed cross-dock adds valuable routing options—especially now that technology has improved visibility and accountability.

3. KPIs & Creative Strategies

What key performance indicators (KPIs) or data points do you find most important for logistics operators?

Troy Lester: Everyone tracks the usual suspects like on-time pickup and on-time delivery. Other examples include “dock-to-stock time,” measuring how quickly products get from a truck to a store shelf. Every network has its own spin, but core metrics like timeliness, damage rates, and cost per pallet are common and critical.

What are some creative strategies or success stories you’ve seen for optimizing the middle mile?

Troy Lester: One standout area is sustainability. Many focus on electrification, but it’s still expensive with limited charging infrastructure, especially for heavy trucks. There are some interesting last-mile EV solutions, but for large freight, the real “green” opportunity is better truck utilization:

• Consolidation: If you have underutilized full truckload capacity, can you slot in someone else’s pallets (or your own LTL loads) on that route to reduce empty miles?

• Shared Trucking: We see a big chance to combine multiple shipments going in the same direction, cutting emissions and costs. Convoy and others have talked about the high percentage of empty miles in trucking. Solving that is both a cost-saver and a sustainability move.

4. RFPs & Common Mistakes

What are some common mistakes you see companies make when they try to optimize their networks?

Troy Lester: A big one centers around RFPs. People in my position often complain that RFPs become a race to the bottom on price. But I actually like RFPs! Just not the way most companies do them.

• Run RFPs More Often: Instead of once a year, consider monthly or at least more frequently. You’ll see what’s new in the market, and you can learn from emerging providers.

• Use RFPs as “Learning” Sessions: Don’t limit questions to rate quotes alone. Include open-ended sections: “What would you do differently in our network?” That’s how you discover fresh ideas.

• Ask for Data-Driven Proposals: If you want a truly useful analysis, share your data—pallet/parcel-level details, PO-level data—so potential partners can provide rich insights.

• Keep Innovating: Too often, transportation operators just chase the lowest cost. But supply chain managers also influence demand fulfillment and inventory accuracy. RFPs can be a gateway to exploring broader improvements.

Overall, an RFP should be part of a continuous educational process, not just a once-a-year chore. If I were running a transportation department, I’d hold frequent RFPs and use them to brainstorm with different providers about network innovation.

5. Top 3 Quick Wins

Can you give me your top three strategies for logistics professionals looking to optimize the middle mile? Specifically, the easiest wins—what should they do right away?

Troy Lester:

1. Think Outside Traditional Mode Boxes

   • Don’t automatically label lanes as “FTL only” or “LTL only.” Look at actual timing and capacity needs, then consider flexible options.

2. Incorporate Cross-Docks

   • It’s an extra step, but it unlocks far more routing possibilities and price/speed improvements if properly managed.

3. Embrace Consolidation

   • Combine shipments, even mid-route, to maximize capacity. This reduces costs and helps cut emissions.

When you say “think outside traditional transportation modes,” do you mean exploring LTL, flexible routes, or anything besides legacy carriers and full-truckload?

Troy Lester: Exactly. For instance, if you have a truck leaving at a certain time and you only need it to arrive by Friday afternoon (not necessarily first thing in the morning), share that timing flexibility with a tech-forward provider. They may slot extra pallets onto that truck, driving down your cost per pallet.

Modern logistics technology allows real-time tracking, real-time routing changes, and more permutations—similar to how Amazon manages its middle mile. Amazon’s ability to route and re-route inventory on the fly gives them incredible speed and reliability. With the right partners and data, others can tap into similar flexibility.

TL;DR - Key Takeaways for Supply Chain Pros

1. Scrutinize LTL Data:

   • Traditional LTL carriers often overcharge by 10-20%.

   • Comparing quoted vs. invoiced rates is an easy first step to uncover quick savings.

2. Leverage Cross-Docks Wisely:

   • They open up more routing and consolidation options, potentially lowering costs and transit times.

   • Full transparency (tracking, photos, timestamps) is essential to manage the extra touchpoint.

3. Track Meaningful KPIs:

   • On-time pickup/delivery is standard, but also consider “dock-to-stock” time, damage rates, and cost per pallet.

   • Tailor KPIs to your specific operation for the best insights.

4. Rethink RFP Strategy:

   • Run RFPs more frequently (not just once a year).

   • Invite open-ended ideas from potential partners and share data for deeper analysis.

   • Look beyond cost to uncover network improvements and keep innovating.

5. Top 3 Quick Wins:

   • Think Outside Traditional Modes: Break out of strict FTL/LTL silos; use timing flexibility to combine shipments effectively.

   • Use Cross-Docks: Properly managed cross-docks unlock cost and speed advantages.

   • Embrace Consolidation: Filling unused truck space drives down costs and emissions.