There is no set solution on how a business can make it through a capacity crunch. Every industry, whether it is consumer goods, metals, banking or retail, relies on the transportation industry to get its goods shipped to the proper location for a good price without damages. One way many businesses can take the pressure off during a capacity crunch is by working with a third-party logistics (3PL) provider.
Here is how a 3PL can help businesses manage the trucking shortage:
Many 3pls have well-established carrier relationships that provide customers with the best possible shipping option. 3pls have access to a large, vetted carrier network to secure capacity for businesses that utilize their services.
most 3pl’s use a transportation management system (TMS) that they have either developed in house or purchased from a third party provider.
A TMS gives a 3pl the opportunity to provide customers with visibility, data reporting, trend analysis, recommendations based on historical data, and rate comparison. they allow clients to book, access, manage, and optimize shipments using a centralized network regardless of shipment size or custom requirement.
3PLS have access to an assortment of carriers with long-term rate agreements. they also actively purchase freight at spot market pricing.
By having access to a larger number of carriers, 3pls have a strong understanding of the rates the market can support and what is the most cost-effective for your business.
While many shippers cannot afford the latest and greatest supply chain technology, 3pls must stay up-to-date to remain competitive.
For small and mid-sized shippers, a logistics provider may be the most affordable way to gain access to transportation management systems and other valuable logistics tech. most 3pls will offer a wide variety of solutions for their clients.
FLEXIBILITY OF MULTIMODAL SHIPPING
Reputable 3pls offer flexible multi-mode solutions for clients. this flexibility is extremely beneficial for shippers because it allows them to take advantage of unused capacity that they might not currently utilize. strong 3pls can combine shipments effectively as well as identify the ideal shipping mode for specific shipping needs. this can result in both cost and time decreases which can increase a company’s profitability.
There is a lot of uncertainty regarding the future of the freight industry. the shortages in trucking capacity are causing many headaches for supply chain managers. partnering with a 3pl is a great way to address current problems, as well as lessen the risk of future ones. if you would like to take the next step and revolutionize your supply chain, then contact us today!