In our previous blog, the FreightPlus team delved into what a Managed Transportation Solution (MTS) is and how it can enhance efficiencies and reduce costs within a logistics program. If you missed it, check out our article Managed Transportation: A Complete Guide.
The Importance of Visibility in a Managed Transportation Solution
One of the most significant advantages of implementing a Managed Transportation Solution is the improved visibility it provides. Enhanced access to data allows businesses to track all aspects of their shipments, both operationally and financially. By utilizing real-time data and analytics, companies can make informed decisions, boost operational efficiencies, and strategically identify areas for improvement. In today’s rapidly evolving logistics landscape, visibility into supply chain programs is essential for success.
What You’ll Learn in This Blog:
- How a Managed Transportation Solution Works: The technology and tools involved
- A Deeper Look at Visibility Benefits: Tracking and data utilization
- Departmental Benefits:
- Operations
- Finance
- IT
- Customer Service
- Sales
How a Managed Transportation Solution Works: Technology and Tools
Definition of Managed Transportation Solution
A Managed Transportation Solution (MTS) is a strategic partnership between shippers and managed transportation providers (MTPs) that focuses on improving logistics and supply chain operations. This partnership leads to enhanced operational efficiencies, reduced logistics costs, and improved communication with all stakeholders involved in the supply chain.
Transportation Management System (TMS)
A Transportation Management System (TMS) is a crucial software platform that oversees the end-to-end transportation process. From planning and execution to visibility and analysis, a TMS enables Managed Transportation Providers to automate the booking and tracking of shipments, optimize routes, and offer real-time visibility into shipment statuses.
Carrier Management
MTPs strategically source and manage a network of carriers, ensuring they have the capacity to move shipments when required. This includes negotiating rates and contracts on behalf of customers to secure the best possible rates.
Freight Audit & Payment
Freight audit and payment services are vital components of a Managed Transportation Solution. These services guarantee accurate billing for shipments and timely payments to carriers. MTPs utilize technology to automate auditing and payment processes, minimizing errors and enhancing efficiency.
Business Intelligence & Analytics
MTPs leverage TMS and integrations with business intelligence (BI) and analytics tools to gain valuable insights into logistics programs. This data helps identify improvement areas and optimize clients' transportation strategies, enabling data-driven decision-making that enhances overall supply chain performance.
Customer Service & Support
Managed Transportation Providers offer dedicated customer service and support to ensure clients' transportation needs are met. This includes providing a single point of contact or a dedicated team, streamlining communication, and enhancing responsiveness.
Benefits of Visibility in Tracking & Data
- Improved Efficiencies: Access to real-time data allows companies to make informed decisions and optimize transportation operations.
- Reduced Costs: Enhanced visibility into freight data and rates enables better negotiation with carriers, helping avoid costly fees.
- Improved Customer Satisfaction: Better tracking and visibility lead to enhanced customer service, faster response times, and accurate delivery estimates.
- More Accurate Forecasting: Real-time data and analytics improve sales forecasts and inventory management.
- Improved Financial Visibility: Access to freight audit software and invoice audits enhances financial transparency and cost control.
Departmental Benefits of a Managed Transportation Solution
Operations
Increased visibility and access to data provide real-time insights into the transportation process, allowing operations teams to track shipments, identify delays, and proactively manage risks. Leveraging an MTS helps optimize transportation routes, reduce costs, and streamline processes, leading to improved productivity.
Finance
The finance department benefits from cost savings and enhanced cost control through data optimization of transportation routes and identification of cost-saving opportunities. Improved visibility allows for better financial resource management and informed investment decisions in transportation assets.
IT
An MTS enhances data integration and management, allowing IT departments to centralize data from disparate systems. This leads to improved data quality and decision-making. MTS also streamlines technology procurement, reducing the need for in-house development and maintenance.
Customer Service
With real-time shipment visibility, customer service teams can proactively address potential issues and provide immediate updates to customers. The enhanced data visibility fosters better communication and collaboration, boosting customer satisfaction and retention rates.
Sales
Sales teams gain improved transportation services through better visibility and control over the transportation process. The analytics provided by an MTS help identify opportunities and deliver valuable insights to clients, leading to increased sales and strengthened customer relationships.
Why Choose Managed Transportation Services?
Managed transportation services help businesses optimize logistics, reduce costs, and improve overall efficiency. By outsourcing logistics management to a trusted third-party logistics provider, companies can focus on core strengths while leaving transportation to experts.
Want to learn more about optimizing your logistics with Managed Transportation? Contact us today.
