A clear understanding of the interconnections between transportation and warehousing is the key to improved transportation performance, according to research from Boston-based consulting firm Aberdeen Group.

Researchers rated a group of companies based on freight spending and percentage of on-time deliveries. The biggest difference between top-ranking companies and all the others, they say, is that top companies make transportation decisions with the entire supply chain—not just transportation performance—in mind.

A delicate balance exists between transportation policy, inventory carrying costs and warehouse efficiency, says Aberdeen. That’s why successful transportation managers make sharing data with the warehouse or DC a top priority.