Transportation is a large part of many businesses and occupies a significant piece of their supply chains. Managing such an impactful branch as transportation is complicated, and trusting a business to handle your supply chain can be very stressful.
However, trying to keep all processes organized becomes almost impossible when you operate a large company with a complex supply chain. Many businesses think they will save money by running an in-house logistics department, but in most cases, it can be much more stressful than outsourcing. Creating and maintenance of the entire department, investing in a transportation management system is certainly a huge expense, and can be a huge burden.
While you may doubt whether outsourcing will benefit you, assigning non-core transportation management is a common practice for both large and small businesses.
Why outsource transportation management?
- Reduce costs, save time. Firstly, a 3PL simplifies the processes and makes your supply chain consistent, solid and unified. A good third-party logistics provider obtains a wide network of qualified carriers who they work with for years. This ensures you will get lower rates and faster transit times. The company also thinks about ways to optimize your shipments in the most cost-efficient way.
- Streamlined transportation processes. Integrated systems and technology lets 3PL’s provide complete visibility into loads and freight management. You will get regular reporting and analysis to keep track of your transportation management.
- No need to buy technology. A reputable 3PL is armed with tech tools such as a robust transportation management system (TMS), tracking tools, etc. While managing all of the transportation processes on your own, you would spend a big part of your budget on a TMS. Using a 3PL you can have management and reporting all in one system with all the needed features.
Ultimately, working with a 3PL can be beneficial both for your budget and operational efficiency. It lets you access an enormous network of freight carriers, technology and reports, and all while focusing on your core business.