6 Ways to Reduce Costs of Your Pulp & Paper Logistics

Logistics costs in the pulp and paper industry can escalate quickly without tight control over transportation, inventory, and warehousing. Fuel prices, labour shortages, and inefficient routes all put pressure on your bottom line.

However, there are tested strategies you can implement today to drive measurable savings and streamline operations without compromising reliability.

From transportation models to inventory handling, the tactics below can help you cut costs while keeping supply chains responsive and resilient.

1. Leverage Intermodal Transportation

Long-haul freight doesn’t need to rely solely on trucks, especially when you’re shipping paper rolls or pulp over thousands of miles. Intermodal transportation—combining rail and truck modes—offers a dependable and often less expensive way to move high-volume goods across the country.

Rail is typically more fuel-efficient than trucking, especially over long distances, and it helps reduce your carbon footprint. By switching part of your route to rail, you can cut shipping costs by 15–20%. This model works particularly well for mills or distribution centres near intermodal terminals. Rail carriers often guarantee scheduled departures, and your shipments can transfer seamlessly to trucks for final delivery.

How to implement intermodal transportation:

• Identify origin/destination lanes longer than 800 km where rail may reduce costs
• Map proximity of your mills or warehouses to intermodal terminals
• Work with a 3PL to compare direct truck vs. intermodal rates and schedules
• Set up trial shipments to benchmark performance
• Negotiate contracts that include intermodal options with flexible terms

2. Implement Backhauling

If you’re paying for empty trucks to return after a delivery, you’re leaving money on the table. Backhauling—using those return trips to move additional freight—reduces costs by minimizing wasted capacity and optimizing fleet use.

Backhaul programs work best when you have a regular flow of shipments in both directions. For example, if your paper products are going to major retail or packaging hubs, look for suppliers or partners located nearby who need inbound freight from your region. Coordinating outbound and inbound loads can reduce deadhead mileage by up to 30%.

How to implement backhauling:

• Track and report all empty return trips by lane and frequency
• Identify suppliers, customers, or vendors near your delivery points
• Ask your 3PL or carrier to match your routes with complementary freight
• Create contracts with partners for regular reciprocal shipping
• Use TMS or load boards to monitor and book backhaul opportunities

3. Implement Vendor Managed Inventory (VMI)

Inventory sitting idle in your warehouse ties up cash, consumes space, and increases handling costs. Vendor Managed Inventory (VMI) shifts the responsibility for managing stock levels to your suppliers. This keeps your inventory lean and your replenishment schedules flexible.

With a VMI model, your suppliers track usage patterns and maintain agreed stock levels based on real-time data. This reduces overstocking and stock-outs by 15–25% and improves warehouse turnover. For pulp and paper, where bulk and weight demand efficient use of space, VMI lets you receive product when and where it’s needed.

How to implement VMI:

• Choose high-volume SKUs or reliable suppliers to pilot the program
• Define min/max inventory thresholds with supplier input
  Share consumption and forecast data regularly
• Set up automated alerts for replenishment triggers
• Use cloud-based tools or integrate systems for live visibility

4. Use Weather-Routing Systems

Weather delays don’t just slow down deliveries—they raise fuel costs, extend driver hours, and create missed deadlines. Implementing weather-routing systems helps you avoid these disruptions by dynamically adjusting routes based on real-time forecasts.

For operations with large territories or regular cross-border movements, weather-routing can improve fuel efficiency by 5–8%. These systems use traffic, temperature, precipitation, and road condition data to reroute trucks before they hit trouble spots.

How to implement weather-routing:

• Use a TMS or fleet management software with real-time weather integrations
• Set geofenced alerts for routes prone to disruption
• Train dispatchers and drivers to adapt to rerouted paths on the fly
• Track delivery performance before and after implementation
• Plan alternate routes during seasonal events (e.g., snow, hurricanes)

5. Slab Damaged Rolls at the Warehouse

When giant paper rolls are damaged during transit or handling, they often require slabbing—a process that trims unusable portions. If your warehouse isn’t equipped to perform this on-site, the rolls must return to the mill for processing, then be sent back again, creating double freight charges.

Equipping your warehouse with slabbing equipment, or partnering with a facility that offers it, removes the need for these extra trips. This not only saves transport costs but also speeds up order fulfilment by keeping product close to the customer.

How to implement warehouse slabbing:

• Review volume of damaged rolls returned to the mill annually
• Estimate cost per return vs. cost of adding in-house slabbing capacity
• Evaluate warehouse space and handling equipment requirements
• Train staff or partner with third-party service providers for on-site slabbing
  Track post-implementation savings from reduced return shipments

6. Hire a 3PL

Managing logistics in-house often means juggling too many priorities and reacting to problems rather than preventing them. A third-party logistics provider (3PL) with experience in pulp and paper gives you access to infrastructure, technology, and transportation networks that are difficult to build on your own.

3PLs can offer:

• Regional and cross-border warehousing tailored to heavy goods
• Transportation optimization using mode analysis, backhaul matching, and route planning
• Inventory management systems that support VMI, demand planning, and order visibility
• Paper roll-specific handling equipment that reduces damage and shrink

By outsourcing to a logistics partner with specialized experience, you can focus your internal resources on core operations while ensuring your supply chain stays lean and responsive.

How to hire the right 3PL:

• Look for experience with industrial freight and high-weight SKUs
• Ask for documented case studies or performance metrics
• Assess geographic coverage and cross-border capabilities
• Confirm warehouse safety standards and handling processes for paper rolls
• Review their TMS, reporting tools, and communication structure

Read Our Guide: How to Pick a Great 3PL for Your Business

PiVAL Specializes in Pulp and Paper Logistics

Pulp and paper logistics come with challenges that general freight providers aren’t equipped to handle. PiVAL has deep experience supporting mills, converters, and distributors with logistics solutions built specifically for the weight, volume, and handling requirements of this industry.

With strategically located facilities across Canada and a strong US partner network, PiVAL delivers a tailored approach that drives efficiency, reduces cost, and protects your product.

Ready to reduce your logistics costs? Contact PiVAL today to schedule a no-obligation consultation.

Our warehouses are located in:

• Montreal
• Toronto
• Guelph
• Vancouver

Contact Us Today for Your Pulp & Paper Logistics