The Many Ways a Managed Transportation Partner Can Help Your Company

As companies grow over time, issues can form within their operations, creating problems and limitations for the business. This is especially true for companies with complicated supply chains, such as manufacturers and shippers selling through multiple channels. The impact can be minor or big systemic issues that impact operating efficiency, service to customers, and the bottom line.

There can be several reasons and causes behind the issues, too. Some may result from bad decisions or habits that have developed over the years based on departments doing things the way they have always been done. Often, things continue in a bad way. No one may even recognize there are problems because nothing is really ever questioned. Even if they do, a lack of experience or will to fix them may allow the issues to continue.

Regardless, the result is that the companies continue to operate a logistics function that is, at best, not a catalyst to the company’s success—which it should be. Or, at worst, it’s a severe detriment to customer satisfaction and the bottom line.

The supply chain is not a function to be overlooked, and the details of execution matter. The speed and accuracy of deliveries have a big impact on customer satisfaction and future sales. Shipping costs can typically make up 10% or more of revenue, so overspending in the area is a big hit to the bottom line. These are just two examples, but they illustrate the extreme importance of logistics to every company's success.

When it comes to specialized functions like logistics, companies often don’t know what they don’t know. This can make some outside perspectives very valuable. A successful approach to creating a well-optimized shipping operation often needs to break negative patterns and habits, which is a primary benefit of working with a managed transportation partner.

What is Managed Transportation?

Managed transportation providers allow you to outsource the planning and execution of your shipping needs. This means you can focus your time and energy on other aspects of your business.

Most companies that ship freight are familiar with the common options for moving loads. Companies will typically run their shipping options in an ad hoc way. They might work directly with a short list of TL and LTL carriers or perhaps have relationships with 3PLs or brokers as an intermediary to help find trucks. Some departments may pay extra for shipping technology like a TMS to help their process be more efficient.

An even more complex situation is a company with multiple locations, each with different carriers, processes, and technologies in place. At the core of the logistics problems many companies deal with the issue of decentralization because it often works against the creation of standardization and visibility, which are necessary parts of a well-run shipping function.

The goal of every logistics department is to create the most efficient processes that lower costs and improve delivery performance. Removing such ad hoc decision-making and processes, as well as decentralization, a managed transportation partner can root out many of the inefficiencies in the logistics operation.

The Top 5 Benefits of a Managed Transportation Partner

Most companies will immediately gain many practical benefits from working with a managed transportation service provider. Here are five of the most impactful.

1. Help Finding Carriers. Contracting with carriers is one of the most basic tasks of the logistics function. But also, one of the most important. Properly vetting carriers and ensuring they can be trusted with your freight and will provide the right service is never easy. Managed transportation partners are connected to huge local and national networks of quality, vetted carriers, so finding available carriers at competitive rates is never an issue.
   
   
2. Better Negotiated Rates. Ensuring a carrier is trustworthy is one thing, but ensuring the rates you pay are market-appropriate is just as important. Managed transportation partners have visibility into market-wide rates and costs that individual companies don’t on their own. Companies realize cost savings without sacrificing service.
   
   
3. More Efficient Load Planning. Since many companies manage their shipping in the moment, there is little thought put into load planning. A missed opportunity for many companies is to combine similar loads or look for ways to lower shipping costs based on modes and transit times. It’s vital to the supply chain because it helps to ensure products get to where they need to be on time. Having a big-picture view of a company's shipments helps.
   
   
4. Making Shipping Technology Accessible. There is no arguing that the right technology makes many things easier, faster, cheaper, and more accurate… and logistics tech is no different. Managed transportation providers can provide technology that helps the shipping function in all of these ways, from digitizing paperwork to eliminating calls and emails to optimizing carrier selection. The technology may even be provided at no extra cost to the shipper.
   
   
5. Useful Data and Reporting. Many companies do not have the time or data to step back and make strategic decisions about their shipping operation’s performance in terms of cost management and delivery performance. A managed transportation provider can help create meaningful reports and actionable insights that drive process improvements and cost savings for the supply chain. Their expertise will ensure the value and usefulness of the information.

The Complete Shipping Solution, Now and In the Future

The experience of a managed transportation provider ensures your supply chain operates better day-to-day and that you can adapt to trends in the marketplace.

For example, freight rates are very cyclical. Ensuring you do not overpay as rates move up OR down is only possible when you know what companies like yours should be paying in the current environment. Managed transportation partners bring knowledge and keep your operation moving forward.

Contact Loadsmart to learn about our bespoke Managed Transportation Services and see how your company can improve delivery performance and cut costs as our partner.