Lean Manufacturing Process Improvements That Can Reduce Freight Costs

August 18, 2026 • 11 minute read

Author: Phyllis Jackson, Senior Manager, US Marketing, UPS

Key Points

• A lean manufacturing process helps reduce freight costs by improving consistency in how shipments are planned and executed.
• Nearly 49% of manufacturers and wholesalers say rising transportation costs are driving more structured freight strategies.^*
• Standardized workflows and structured decision-making help reduce variability and improve efficiency.
• Service tiers and escalation paths help teams align shipping speed and business needs while avoiding unnecessary expedited costs.

What Changes Can Lead to Improved Manufacturing Processes?

A focus on consistency, visibility and structured decision-making can improve manufacturing processes, which directly impact freight costs.

Manufacturers and wholesalers can begin by focusing on how shipments are planned and executed, which often starts with four foundational steps:

• Standardizing shipment workflows.
• Defining how orders of varying size and urgency should move through the network.
• Establishing clear escalation paths to help teams respond when conditions change.
• Improving visibility across operations and logistics.

These best practices help align day-to-day decisions with broader cost and service goals while supporting more proactive planning across the supply chain. They also support lean manufacturing processes, which can help reduce operational disruptions and downtime across the supply chain. That can mean fewer last-minute shipping changes, more predictable transportation spend and better use of available capacity.

As transportation costs rise and service expectations increase, many organizations are reassessing how freight decisions are made. Research from the UPS study “End-to-End Logistics X Freight Management Insights” reveals the top freight management challenges for manufacturers and wholesalers are:

• Rising transportation costs (48.7%)
• Service reliability and delays (38.6%)
• Meeting delivery expectations (36.8%)^*

“As demand patterns shift and shipment profiles become less uniform, organizations are placing greater emphasis on visibility and responsiveness to maintain performance, which often includes their logistics partners,” says Lorie Schlatterer, Manufacturing Strategic Lead, UPS. “Our latest research shows that 63.4% of manufacturers prefer data- and technology-led logistics partnerships.”^**

Process improvements tend to be most effective when applied consistently across locations and teams. Standard approaches to packing, routing and service selection create a shared framework that supports coordination between operations and logistics.

“More structured decision-making around urgency and shipping options helps maintain efficiency and keep freight spending under control,” Schlatterer adds.

How Manufacturing Process Standardization Drives Freight Efficiency

Standardization is a core lean manufacturing concept and plays a key role in improving consistency and performance across manufacturing and wholesale environments.

Standardizing key parts of the manufacturing process gives teams a clearer foundation for decision-making and cost control. This same approach can be applied within warehouse operations to support more future-ready warehouse processes. Defining shipment characteristics and routing expectations upfront makes it easier to plan transportation to support both efficiency and service performance.

Standardize How Shipments Are Built

When shipments are assembled more consistently, it becomes easier to match each one to the right mode and service level without relying on last-minute adjustments. Consistent guidelines for pallet configuration, packaging and order grouping help create more uniform shipment profiles.

Over time, that consistency improves load planning and supports more effective use of available capacity.

Align Routing and Service Selection

When routing and service decisions follow the same playbook, similar shipments can be handled consistently across teams and locations. That consistency helps stabilize cost and transit times, while making it easier to coordinate across distribution networks.

Reduce Variability to Improve Flow

Lean manufacturing process improvement supports freight efficiency by reducing unnecessary variation and improving flow.¹ In logistics, this often leads to fewer shipment changes, decreased reliance on expedited services and a more consistent transportation profile.

“As organizations look for ways to manage transportation costs more effectively, standardization provides a practical starting point,” Schlatterer explains. “It creates the structure needed to support freight savings while allowing flexibility where it matters.”

Manufacturing Service Tiers and Escalation Paths for Better Freight Control

Freight strategy is no longer just about moving shipments. It requires making the right choices as shipment profiles change and ensuring those decisions remain consistent as conditions evolve. Service tiers and escalation paths help teams match shipping speed to business need while maintaining control over freight costs.

How Do Service Tiers Improve Manufacturing Process Effieciency?

Service tiers establish clear guidelines for how different types of shipments should move through the network. Instead of treating every order with the same level of urgency, teams can match service levels to specific requirements, such as:

• Delivery timelines
• Order value
• Customer expectations

For example, planned replenishment orders may follow a lower-cost, scheduled approach, while time-sensitive shipments move through expedited channels. With these distinctions in place, teams can make faster, more consistent decisions without defaulting to rush shipments.

This approach supports lean manufacturing process improvement by reducing unnecessary variation in how shipments are handled. Expedited shipping options should be used intentionally, rather than as a routine option.

Define Escalation Paths to Maintain Control

Exceptions can still occur, even with clear service tiers. Defining escalation paths helps teams respond to those situations without disrupting other processes.

Clear criteria for escalation, along with approval workflows for expedited shipping, help prevent unnecessary cost increases. Documenting and reviewing all exceptions can highlight patterns that can inform future process improvements.

“By combining service tiers with defined escalation paths, organizations can create a more controlled approach to managing urgent situations,” Schlatterer adds. “This allows teams to remain responsive when needed while keeping freight decisions aligned with cost and performance goals.”

Aligning Shipping Options with a Lean Manufacturing Process

Shipping decisions work best when they follow the same level of discipline as the rest of the manufacturing process. With clear guidelines in place, teams can select transportation modes based on shipment characteristics and delivery requirements, rather than reacting to individual situations.

Match Shipping Modes to Shipment Profiles

Different shipment sizes and weights require different transportation approaches. Smaller, lighter shipments may move efficiently through parcel networks, while larger loads may be better suited for LTL or FTL options.

Many manufacturers also ship midweight orders that don’t align cleanly with traditional LTL pricing or routing structures. These shipments may still move through freight networks, but when they aren’t matched to the right transportation model, transportation efficiency and cost control can become harder to maintain.

“Owning the outcome means more than moving the shipment,” says Charles Cawthorn, Wholesale Strategic Lead, UPS. “It includes selecting the right mode for each situation. Midweight shipment solutions can help support shipments that no longer align well with traditional LTL guidelines.”

When shipment profiles are more consistent, it becomes easier to match each one to the right mode without overpaying for unnecessary capacity or speed. That includes identifying when alternative approaches are better suited for shipments that no longer align with traditional LTL routing criteria.

This also creates more opportunities for freight consolidation, which can improve trailer utilization and reduce the number of partial loads moving through the network.

Use Flexible Options for Smaller or Less Consistent LTL Shipments

For shipments that no longer align well with traditional LTL structures, standard options don’t always result in the right balance between cost and service. These shipments can introduce inefficiencies when routed through networks that typically handle larger, more frequent shipments.

UPS^® Ground with Freight Pricing offers a flexible option for multi-piece shipments that move through the UPS small package network, giving customers a way to manage orders that may not be the right fit for traditional LTL .

Kenneth Manjin, UPS^® Ground with Freight Pricing Product Lead, explains, “Midweight shipments are often the first to feel pressure when LTL networks tighten or shift. Because they don’t align cleanly with parcel or traditional LTL models, they often require more flexible transportation options. UPS^® Ground with Freight Pricing is designed to help absorb some of that variability.”

By incorporating flexible shipping options, organizations can manage a wider range of shipment profiles without defaulting to traditional LTL. For multi-package shipments that may not fill an entire pallet, shippers can leverage UPS^® Ground with Freight Pricing, which takes advantage of the UPS small package network while still using freight-based pricing. In contrast to LTL, small parcel shipments provide piece-level visibility and fewer handling points.

Turning Lean Manufacturing Process Discipline into Freight Savings

When freight decisions follow a lean manufacturing process, cost control becomes more consistent. Shipments move with fewer last-minute changes, and teams can rely less on expedited services to stay on schedule.

Over time, this leads to more efficient use of transportation capacity and better alignment between operations and logistics. Instead of reacting, organizations can plan with greater confidence and consistency.

“These improvements often show up in more stable transportation spend, improved service performance and fewer overall disruptions, Cawthorn says.” As supply chains continue to evolve, a more disciplined approach to manufacturing and logistics helps organizations stay efficient while adapting to changing demand.”

¹Lean and Process Improvement, July 2025.

The End-to-End Logistics X Freight Management Insights survey was distributed in an online format to 1,055 respondents in the U.S., with each being compensated at an agreed-upon rate for their time. Each survey took approximately 10 minutes to complete. The survey ran from February 23 to March 9, 2026. QUESTIONS: ^*Which of the following freight-related challenges are most significant for your organization today? ^**Which of the following best reflects your preference?

Individual results and options will vary. UPS makes no promises of any specific outcome in this document but instead provides only example outcomes based on certain UPS customer experiences.