Companies have seen firsthand the many ways shipping has been reshaped by the pandemic and the severe supply chain disruption that’s come out of it. High freight rates and difficulty finding trucks are just two of many. At the same time, all companies are still facing increased customer expectations requiring them to deliver with less lead time and make deliveries faster. And, as every logistics professional knows, both requirements can have a severe impact on shipping costs.
These factors working together have made logistics management more complex for most manufacturers and retailers. It’s led many businesses to think about outsourcing their logistics operation to a managed transportation provider as a way to adapt to these heightened demands. With most companies knowing their priority needs to be on the products they produce and sell (and not necessarily to be an expert on how they are delivered), it makes sense to explore this opportunity. It’s a tough environment for every business having to coordinate truckload, LTL, or parcel shipments—even those with a lot of experience.
Outsourcing to a managed transportation partner is not a simple decision since logistics affects so many elements of a company, especially profitability. There are, however, some clear benefits.
Smoother and Smarter Operations
Shippers can benefit from expert logistics knowledge by working with a qualified provider. After all, the partner’s business is transportation. So, it can provide objective guidance on improving shipping processes that may not be optimal right now.
Partners can also provide technology that helps manage the routine tasks of a logistics department, like route planning, load dispatching, track and trace, and other hard to keep up with, but essential tasks, such as invoice, auditing, or billing. A well-run operation will improve your relationships with your customers and your carriers, vendors, and suppliers.
Shippers who lack the proper technology to enable useful insights from supply chain data (such as those that a TMS can provide) are already one step behind their competitors. Technology is expensive, and getting the most out of it can be difficult. Qualified managed transportation partners will provide technology most shippers cannot afford on their own.
Aside from the day-to-day time savings technology offers by automating manual tasks, it can also store your data in one convenient location and enable more informed decisions. This takes shippers from operating in a reactionary way and allows for a more proactive and strategic approach. When you automate manual tasks, you not only get time back in your day, but you are also able to optimize your operational costs, saving you money and providing you more time to focus on managing your core business.
Getting the Most from a Transportation Partner
Shippers should set their expectations high for their managed transportation partners because their customer expectations of them are high, too. Having clear and measurable goals for a partner is the first step to ensuring everyone is working toward the same objectives. The best partner will operate at the intersection of people, processes, and technology.
Outsourcing to a managed transportation partner is about adding expertise and technology to your logistics function in a low-risk, low-cost way. A managed transportation partner with industry expertise can provide shippers with a unique opportunity to gain data insights that effectively control costs, while also increasing the predictability and accuracy of their budget, allowing shippers to focus on what’s important to them – growing their core business.
It’s up to companies to do more with less, and often, it’s a managed transportation partner, like Loadsmart, who can make that possible.
Transforming the future of freight, Loadsmart leverages technology and logistics data to build efficiency around how freight is priced, booked and shipped. Pairing comprehensive logistics technology with deep-seated freight industry expertise, Loadsmart fuels business growth, simplifies operations and increases efficiency for carriers and shippers alike. For more information, please visit: https://loadsmart.com. Move more with less.