An effective freight logistics program is crucial for delivering products on time and in good condition. However, managing transportation and logistics is often complex and time-consuming, which is where managed transportation services come in.
Challenges of Traditional Logistics Programs
For many small to mid-sized companies, investing in logistics falls lower on the priority list. Traditional logistics management often involves partnering with multiple freight brokers to find the lowest rate for each shipment. While this may reduce costs in the short term, it’s not an effective long-term strategy.
Imagine shipping the same lane 40 weeks per year—negotiating an annual rate would make more sense than chasing the lowest weekly price. However, logistics departments often lack the resources needed to make strategic decisions like this.
Common Issues in Traditional Logistics Programs
- Limited Bandwidth & Resources
Logistics teams are often stretched thin, focusing on day-to-day operations and manual entry, often in spreadsheets. This approach is time-consuming and prone to errors, limiting strategic logistics management. - Lack of Technology
Identifying and implementing the right logistics technology is a challenge. A Transportation Management System (TMS) is a good starting point but does not provide a complete solution for strategic supply chain optimization. - Fragmented Data
Managing a network of brokers often leads to fragmented and decentralized data. Without the right tools, tracking shipments and financials becomes difficult, causing inefficiencies and communication problems within logistics management. - Lack of Tools for Sourcing & Bidding
Logistics teams often lack the tools needed to source carriers and manage bids effectively, which hinders their ability to expand carrier networks and streamline logistics processes.
What are Managed Transportation Services?
Managed Transportation Services (MTS) is a solution where shippers partner with a third-party provider to improve logistics through operational efficiencies, cost reduction, and better communication. It offers end-to-end transportation solutions, allowing businesses to outsource logistics tasks to experienced professionals.
How Do Managed Transportation Services Work?
With MTS, a third-party logistics provider manages all aspects of logistics—from carrier selection to shipment tracking—using dedicated resources and technology. This allows businesses to focus on their core operations while leveraging the provider's expertise and systems for effective supply chain optimization.
Benefits of Managed Transportation Solutions
Cost Savings
Managed transportation services can reduce costs by leveraging the provider's expertise, optimizing routes, and consolidating shipments.
Improved Visibility
Advanced technology provides real-time insights into every stage of the logistics process, improving customer service and reducing risks. This is crucial for efficient logistics management.
Scalability
Managed services can scale alongside your business, adapting to meet changing needs and providing the flexibility necessary for growth.
Increased Efficiency
By outsourcing logistics management, businesses reduce manual work and enable logistics teams to operate more strategically. Improved visibility also enables better cost control, streamlined operations, and enhanced service levels.
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.
