How Hospitals Can Cut Freight Costs Without Changing Carriers

The growing challenge of freight cost reduction in hospitals

For healthcare organizations closely scrutinizing their expenses, freight costs are emerging as a growing pain point. Rising operating costs, tariffs on vital medical products from overseas, and global supply chain disruptions are major culprits. Healthcare is particularly vulnerable to higher freight costs, as it relies on a complex and fragile global supply chain for vital pharmaceuticals, medical devices, and PPE.

These freight cost reduction challenges hinge upon broader trends, making healthcare facilities even more susceptible to industry pressures. For example, the Bureau of Transportation Statistics (BTS) reported a 1.9% price increase for freight equipment and transportation from July 2024 to July 2025.

Another challenge in trying to stem rising freight costs is the frequent lack of visibility. Health systems with multiple facilities and many departments often struggle with "siloed supply chains"—that is, each group has its own vendors and ordering procedures.

Hospital freight cost is directly linked to broader industry pressures, such as:

Transportation costs

These costs include increases in fuel prices, global shipping rates, hidden surcharges, and a lack of transparency. Supply chain disruptions, stockouts, and poor inventory management force hospitals to rely on expensive expedited freight. International shipping costs have spiked due to geopolitical events, port congestion, and labor shortages. Many medical supplies are globally sourced.

Compliance requirements

The need for special handling of sensitive materials, protection of patient data during transport, and chain-of-custody and audit requirements for many medical supplies all add to freight costs and complexity. Non-compliance can lead to legal penalties and fines, pushing hospitals to choose regulatory adherence over cutting freight costs.

Complex vendor networks

There are countless local and regional vendors, distributors, and logistics partners operating in the healthcare ecosystem. This massive number of entities creates a complex, fragmented network that is prone to inefficiencies. Siloed supply chains, fragmented purchasing, poor vendor management, and a lack of integration lead to higher costs.  

The medical supply chain's vulnerability further amplifies these external pressures. Hospitals already operate on tight margins. It doesn't take long for these challenges to strain budgets and impact patient care. Yet before hospitals consider switching, it’s worth examining the real cost of doing so.

The hidden costs of switching carriers

As critical players in a high-stakes business, hospitals face significant risks when changing supply chain carriers. New vendors add to the administrative burden and the possibility of disruption, which can negatively affect operational efficiency and, most importantly, patient care.

Healthcare logistics require security, precision, and regulatory compliance for many products, including delicate medical equipment and pharmaceuticals that require special handling.

A new shipping program can introduce delays and necessitate re-contracting and retraining staff. It's an impossible choice. Do you put an added burden on your administrative assistants, negotiate new contracts, retrain staff, and risk not having the critical supplies when you need them? Or do you shoulder the mounting freight costs?

Most hospital administrators would choose the path of least disruption for both their team and their patients. The problem is, they are often under intense pressure to reduce costs.

What if there were an effective way to optimize freight costs without changing carriers?

How healthcare freight optimization can reduce costs

Healthcare freight optimization is a data-driven, strategic process that is highly effective for freight cost reduction. Hospitals of all sizes can benefit by leveraging technology and data and collaborating with suppliers to improve efficiency and reliability while reducing costs. 

The goal, beyond cost savings, is to transport pharmaceuticals, medical supplies, and equipment to the right place as quickly as possible, since timely delivery impacts patient well-being. A centralized, data-centric approach gives hospital administrators the visibility and insights they need to be proactive, efficient, and resilient in their supply chain management. 

Let's explore the benefits further:

Centralized freight management

Centralizing freight management across departments breaks down supply chain silos and eliminates redundancies. With a centralized, automated system, logistics managers see the "big picture" across the entire healthcare system, enabling them to consolidate orders and negotiate vendor contracts more effectively. This system reduces manual processes and streamlines fragmented data.

Data-driven logistics

Using advanced analytics, hospital administrators can audit vendor invoices, identify inefficiencies, and optimize routing. These actionable insights can reduce supply chain costs, minimize waste, and optimize efficiency and patient care.

A well-managed supply chain provides a competitive advantage. It drives cost efficiency, enhances patient care and safety, and builds organizational resilience.

Pharmacy-to-patient delivery

Hospital pharmacies that provide direct-to-patient medication delivery face unique challenges in managing deliveries, boosting efficiency, and optimizing care. Triose's TRIshipPRO platform is a supporting technology that streamlines pharmacy processes and prescription delivery, providing real-time visibility and tracking.

Hospital pharmacies that provide direct-to-patient medication delivery face unique challenges, including coordinating deliveries across multiple carriers, ensuring compliance, and maintaining a high level of patient experience. As healthcare systems move toward more patient-centric care models, pharmacy-to-patient delivery becomes a critical extension of an interconnected logistics ecosystem.

Hospital pharmacies that provide direct-to-patient medication delivery face unique challenges, including coordinating deliveries across multiple carriers, ensuring compliance, and maintaining a consistent patient experience. As healthcare systems move toward more patient-centric care models, pharmacy-to-patient delivery is increasingly viewed as a critical extension of the broader logistics ecosystem. When executed effectively, P2P programs can help improve medication adherence, reduce delays in care, and support better patient outcomes. Technology plays a key role in enabling this shift by creating the coordination, visibility, and reliability needed to support adherence at scale, making it an important area for continued focus and innovation.

Healthcare freight optimization: Success stories

In their quest for improved efficiency, optimized patient care, and freight cost reduction, hospitals that have implemented centralized freight management have achieved great success.

• Lakeland Regional Medical Center – Improved process flow, cut 16 hours a month in labor for the accounts payable department, and saved $465,000.

• Baystate Health – Brought 100% supply chain visibility to a healthcare system with 80 locations and reduced shipping costs by $650,000.

A key part of their success was their ability to bring existing vendors into their new centralized shipping management system.

Carrier-agnostic logistics: A unique advantage

A carrier-agnostic logistics model gives healthcare systems greater flexibility, control, and resilience across their supply chains. By removing dependence on a single carrier, organizations can evaluate shipping options based on service level, cost, urgency, and compliance requirements rather than contractual constraints. This approach enables better shipment consolidation, more efficient routing, and improved cost management, while also reducing risk during periods of disruption. For healthcare systems operating across multiple locations, carrier-agnostic strategies support transparency and adaptability, helping leaders maintain consistent performance while aligning logistics decisions with long-term operational goals.

Supercharge your healthcare supply chain

Hospitals trying to reduce their freight costs may believe that the only way is to find cheaper vendors. However, a more effective way to cut costs is to centralize your freight management to gain visibility, use data analytics to identify inefficiencies, and work with vendors to negotiate better arrangements.

We help our healthcare clients manage their supply chain operations by developing custom solutions and providing the expertise needed to boost efficiency while reducing costs. We combine advanced technology, comprehensive data analysis, and personalized service so you can achieve your financial goals and better serve your patients.

At Triose, we believe true freight optimization isn’t just about cost savings, it’s about building a more resilient, transparent supply chain that empowers caregivers and patients alike. For more information about our healthcare logistics solutions, contact Triose.