Are These Shipping Problems Familiar? If So, Consider a Managed Transportation Solution

Shipping is complicated and never easy. So, how do you know if the day-to-day headaches in your logistics operations are normal or if you need some serious help?

The good news is there are likely some very clear signs if you know where to look. And when you figure out the root cause of the challenges, it’s much easier to create workable and sustainable solutions. Knowing the questions to ask and where to look is the hard part for many companies, so they stick to their default firefighting mode to deal with the problems that keep coming up instead of focusing on the fixes.

The best long-term solution many companies come to eventually is working with a managed transportation partner. We’ll explain why shortly, but first, here are some quick questions you can ask to determine if what you deal with in your shipping operation is normal or something that needs improvement.

1 - Does your shipping operation feel out of control because each load requires too many phone calls and a lot of paperwork? Not normal. These days, any size shipping operation can operate user-friendly technology that makes it simple to manage all shipping online.

2 - Does everything you do, from finding carriers to scheduling loads, feel reactionary and done without a strategy? Not normal. The costs of shipping and delivery performance of your delivery operations directly impact your customers and bottom line and must be done with your company’s big-picture objectives in mind.

3 - When shipments leave the dock, does it feel like they’ve fallen into a black hole, and you have no visibility? Not normal. Supply chain visibility is not just an industry buzzword. Other people in your organization and your customers very often NEED to know where a given delivery is at all times. Real-time visibility is a must-have.

4 - Do you lack confidence in your ability to measure anything about your shipping costs or delivery performance?  Not normal. You can’t manage what you cannot measure. Benchmarking shipping costs and supplier performance is the only way to determine how well your operation is performing and understand if your changes are driving improvements.

Trust Your Feelings, But Use Data And a Partner

Despite all those questions about feelings, logistics is mostly about creating efficient processes and data-driven decision-making. This is where a managed transportation partner's objectivity, expertise, and technology can help.

A managed transportation partner is a company that specializes in working with shippers to build and run optimized shipping operations on their behalf. Every successful business is an expert at something — like manufacturing or retailing products — but a great managed transportation partner is an expert at logistics. Chances are, this is what you need.

Here are some deeper explanations and causes of the issues we described earlier, along with the specific ways that managed transportation services can help.

1 – Problem: Your shipping operation is out of control

Reliance on manual processes, spreadsheets, and phone calls has no place in any logistics operation these days. Technology is necessary and something you can count on a qualified managed transportation provider to offer as part of their solution. Without it, you are missing out on the ability to automate basic tasks, wasting time, overpaying for freight, and making unnecessary errors.

2 – Problem: You’re operating without a strategy or plan

Not knowing if the rates you’re paying are market-appropriate is bad, but even worse is not being able to find a carrier to move your loads. Managed Transportation partners cover a lot of freight for customers daily, so they know what competitive rates are and where to find the truck capacity you need. With the expertise of a partner, you know your rates are good and are connected to a broader network of carriers than if you’re on your own.

3 – Problem: You have no ability to track…. anything

Supply chain visibility is made possible through a connected operations network with centralized information that is easily accessible. Armed with access to real-time shipping information – both past and present – companies can see what’s happening across their supply chain in the moment while also being prepared to make better long-term decisions. A managed transportation partner can create this visibility through their technology.

4 - You’re not taking advantage of what your shipping data and KPIs can offer. Speaking of technology, changes that lead to lasting logistics improvements are usually rooted in data. Getting started and learning how to use your supply chain data is often hard for companies. A managed transportation partner can support you by helping to set up the best and most actionable KPIs and metrics that you can use to improve the performance of your shipping operations. The areas you’ll see benefits can range from cost reduction to carrier management to customer satisfaction.

BONUS SOLUTION: There is one more type of company that a managed transportation partner can help. Some shippers are not struggling with a lack of carriers or technology… they have too much. Having a portfolio of too many partners or disconnected technologies can also create problems. In these situations, centralization through a partner is often the best solution. A managed transportation partner can help by combining data across systems and locations, optimizing the number of carrier relationships, and creating more consistency with reporting and management.

Keep Your Logistics Operation One Step Ahead

If you’re feeling any of the problems we’ve highlighted, you may be getting left behind. That’s okay; logistics is not the reason your company is in business. But it does matter. More than improving the day-to-day of your logistics operations, a managed transportation partner can keep your logistics operation on the leading edge when it comes to technology and where the markets are heading in terms of rates, capacity, and any other trends at the time.

Companies should always focus on what they do best. Let someone who is an expert handle the logistics.

If you’d like to understand how Loadsmart’s Managed Transportation Services can set your company up for future success, contact us to schedule an assessment.