How To Optimize Distribution And Middle Mile Logistics

Retailers and logistics providers are increasingly turning their attention to middle mile logistics to gain control over costs and improve supply chain performance. While much focus is typically placed on last mile delivery, optimizing the middle mile, also known as local distribution, can drive cost savings and operational efficiency. By taking control of mid-mile routes, businesses can reduce reliance on third-party carriers, streamline warehouse operations, and maximize delivery resources. Whether you manage recurring local freight or multi-depot routes, you’ll learn how to optimize distribution and cut expenses in 2025 and beyond.

Take control of your distribution strategy by building in-house routes, automating mid-mile operations, and tracking logistics KPIs for continuous cost savings.

Truck routing must account for regulations, restrictions, and road constraints, making it essential to test your routes using real data with a free truck route planner trial. Try a 7-Day Free Route Planner Unlimited Stops and Unlimited Tasks Test Drive today!

 

Table of Contents

 

What Is Middle Mile Logistics?

Middle mile logistics, also called local distribution, refers to transporting goods from a warehouse or fulfillment center to a store or distribution hub. Unlike the first or last mile, middle mile operations are typically repetitive and predictable, making them ideal for optimization and automation.

Companies like Amazon have shown how optimizing middle mile logistics through route planning, autonomous trucks, and automated order picking can cut costs and improve operational efficiency.

 

First Mile, Middle Mile, And Last Mile Logistics

The supply chain consists of three segments:

  • First mile: Goods move from a manufacturer to a warehouse or fulfillment center.
  • Middle mile: Goods move from a warehouse to a distribution hub or local delivery center.
  • Last mile: Goods are delivered from a warehouse or hub to the final customer.

Most retailers focus on last mile efficiency because it’s expensive, but optimizing middle mile logistics can also significantly reduce costs.

 

How to Optimize Distribution & Middle Mile Logistics

Once last mile processes are optimized, focus on your middle mile operations. Here’s a 9-step strategy to streamline distribution and cut expenses:

 

1. Consider In-House Middle Mile

Relying heavily on third-party carriers, LTL providers, and freight brokers limits control over costs. Running middle mile operations in-house provides predictability and control, allowing automation and route optimization to deliver substantial savings.

Fleet with distribution vehicles and delivery cars for in-house middle mile logistics and distribution operations

 

2. Use Route Optimization Software

Route optimization software automates repetitive middle mile tasks, helping businesses plan efficient multi-stop routes. The best route optimization software, like Route4Me, offer customizable solution, preventing unnecessary fees and ensuring your routing software meets the specific needs of your distribution network.

Customize last mile route optimization software subscription by adding add-ons and modules on Route4Me's Marketplace.

 

3. Import Addresses Any Customer Database (CRM, eCommerce Platforms, Excel Spreadsheets)

Sync your route planner with CRM or eCommerce platforms to import customer addresses. Route4Me, an adaptable business route management software, supports multiple import methods:

  • CRM and eCommerce platforms
  • Excel spreadsheets
  • Cloud storage (Google Drive, Dropbox, etc.)

This ensures all delivery points are captured efficiently for route optimization.

 

4.  Specify Custom Middle Mile Optimization Parameters

Set constraints and business rules in your routing software to match your fleet and operational needs. Route4Me, the easiest route planner software for middle mile logistics, enables you to you to fine-tune route planning with such parameters as:

Optimized routes ensure trucks operate at full capacity, improving speed, efficiency, and cost-effectiveness.

Direct Store Delivery route planning with business routing rules and customer and fleet variables.

 

5. Optimize Distribution Routes

Whether planning multi-depot routes, cross-docking, or urban deliveries, optimizing middle mile routes reduces unnecessary mileage and fuel costs. Efficient route planning prevents drivers from circling between depots or fulfillment centers, saving time and money.

An unoptimized distribution route with multiple stops on a map vs an optimized multi-stop route

 

6. Schedule Recurring Middle-Mile Routes

Because middle mile routes are often repetitive, schedule recurring deliveries in advance. Route4Me allows you to create route templates and plan routes as calendar events, making planning faster and reducing operational overhead.

Scheduling repeat bookings for planning multi-stop routes on field service scheduling software

 

7. Send Routes To Drivers’ Route Planner Apps Or GPS Truck Apps

Dispatch optimized routes directly to drivers’ GPS apps. Route4Me, the fastest truck routing software, supports iOS and Android apps with:

This keeps drivers on track and improves route adherence.

Dispatch routes to drivers.

 

8. Improve Warehouse Operations

Optimize warehouse tasks like order picking, loading, and inventory management to support middle mile efficiency. Proper warehouse management reduces loading times and ensures trucks depart fully loaded, enhancing route efficiency.

Using route optimization software to improve warehouse operations such as order picking for faster distribution

 

9. Track Analytics And Middle Mile Logistics KPIs

Use route analytics to measure performance and ROI. Track logistics KPIs like:

  • Total planned routes and stops
  • Planned vs. actual distance
  • Visited vs. missed addresses
  • Proof of delivery notes

Route4Me allows reports by driver, date, or stop type, with data export options for further analysis.

Tracking field service KPIs and field service technicians' performance metrics on field service management software

 

 Last Updated:

About author: Daniel Archer

With a background in pedagogy and writing instruction, Daniel is a former tenured English Instructor who, after nearly 20 years of teaching, transitioned into content strategy and leading writing teams for global brands. Now, as Technical Documentation Manager at Route4Me, he translates complex logistics technology into clear, accessible content that empowers users.

Other Questions in "How-To Last Mile Guides"

Route4Me

About Route4Me

Route4Me has over 40,000 customers globally. Route4Me's Android and iPhone mobile apps have been downloaded over 2 million times since 2009. Extremely easy-to-use, Route4Me's apps create optimized routes, synchronize routes to mobile devices, enable communication with drivers and customers, offer turn-by-turn directions, delivery confirmation, and more. Behind the scenes, Route4Me's operational optimization platform combines high-performance algorithms with data science, machine learning, and big data to plan, optimize, and analyze routes of almost any size in real-time.