Traditionally, transportation management has low visibility and falls short on the scale of priorities within a company. In today’s economic environment, companies everywhere are looking for a competitive advantage, and if transportation management isn’t a core competency, and you find yourself spending a lot of time and money on it, then it’s time to consider the benefits of partnering with a third-party logistics company.
If you recognize any of these as a pain point, it is time to outsource your transportation management:
- Cut transportation costs
- Improve business processes
- Improve customer service
- Supply chain visibility
- Manage inventory
- Reduce labor costs
Transportation management has a huge impact on business performance, and many companies are reaping the benefits of managed transportation, transportation management software and outsourced transportation. 80% of Fortune 500 companies and 96% of Fortune 100 companies use 3PLs in some fashion.
Shippers can rely on 3PLs who specialize in transportation management to deliver real benefits, which are scalable and customizable for their own business goals and requirements. Some of the biggest benefits from partnering with a 3PL include:
Data. A 3PL will integrate a transportation management system to provide you with visibility on shipment status, cost summaries, average lead times, and average haul length vs. cost per pound reports. Centralized technology allows decisions to be made based from real-time and historical data analysis.
Capacity & Flexibility. A transportation management provider has relationships with qualified carriers which means you will be able to find capacity even during your peak shipping season. A 3PL is familiar with the complex regulations and can handle fluctuating shipment schedules. A 3PL has the ability to handle regularly scheduled shipments, plus any expedited shipments, across all modes and lanes. A 3PL is scalable and can find new opportunities for cost savings like backhauls and LTL combinations.
Discounts. A transportation management provider has buying power and will receive competitive pricing on freight moves. A 3PL will help you negotiate lower GRIs and/or fuel surcharges. In most cases, a 3PL can create opportunities for cost savings for companies who have been running their own shipping departments.
Outsourcing transportation management means more time for you to focus on what you do best. Using managed and outsourced transportation services enables you to improve your operating structure, increase revenue and reduce transportation spend.
Click here to read the 5 major benefits customers gain by engaging in a long-term 3PL partnership.