We continue our series on all things managed transportation today by going over some of the major managed transportation services that a managed transportation services provider may provide. Yesterday we went ahead and addressed the outdated notion that managed transportation services are a separate offering from a transportation management system, as some have stated. The New model in managed transportation is a holistic strategic approach for creating transportation solutions using a combination of technology and services.
Throughout the information below, you will see some shared managed services through out each various category. The theme that continues to pop out to us is this focus on services that use both technology and people to deliver.
With transportation eating up the lion’s share of logistics expenses, shippers are under constant pressure to drive down rates and overall costs. A managed transportation services provider can relieve that pressure. The largest part provided by any managed transportation services provider is in the area of tactical transportation procurement services. These types of services result in operationally feasible capacity plans with savings of up to 35% on the rates themselves. The tactical transportation procurement Managed Transportation Service directly improves efficiency, profitability, service and cost savings for shippers.
Shippers can outsource their day-to-day transportation procurement to the provided transportation management system (TMS) and / or entire function to a freight routing representative at the logistics services provider and maintain strategic control. If you need help with planning, execution or load & route optimization or if you are still utilizing Excel spreadsheets to manage your transportation system, Managed Transportation Services can help! A managed transportation services provider can help a shipper through a collaborative effort that creates a business process out-source solution that is executable and delivers the shippers specific needs.
The optimal set up between a shipper and provider of managed transportation services is through a collaborative effort. The following services make up the tactical transportation procurement management service:
Inbound freight management is receiving a lot of attention as businesses continue to look for ways to manage shipping costs.
If you’re looking to save costs on shipping, take a look at inbound shipping. Depending on the industry and size of the company, a business can spend more than 40% of its annual freight budget on inbound shipping, according to the Aberdeen Group, a research firm in Boston. A more efficient inbound freight program can minimize delays, save money and even reduce confusion.
75% of companies surveyed by the Aberdeen Group report that inbound freight management is a key focus point & Total freight spend is between 3.6% and 5.2% of surveyed companies’ total sales, according to Aberdeen’s results. The following are some key areas of the inbound freight managed transportation service:
As shippers strive to wring every cent out of their logistics costs, they’re increasingly taking a hard look at their reverse logistics management practices. And no wonder, they may find a motherlode waiting to be mined.
Companies can no longer afford to treat reverse logistics management as an afterthought. It needs to be a core capability within the supply chain organization. For years, most shippers paid little attention to returns.
That has changed as companies increasingly realize that understanding and properly managing their reverse logistics programs can not only reduce costs, but also increase revenues. It can also make a huge difference in retaining consumer loyalty and protecting the brand, as we explain more fully below.
Just how big is the opportunity? According to the Reverse Logistics Association, the volume of returns annually is estimated at between $150 and $200 billion at cost.
Reverse Logistics services include:
Pool distribution is picking up one or more truckloads of LTL shipments at an origination, taking it to a staging area or cross dock facility and reassembling the shipments on multiple trucks for distribution. Pool consolidation is the opposite. Pool consolidation picks up multiple LTL shipments from multiple locations, brings the shipments to a central staging area for customer pickup or loading it onto a truck for line haul. Many managed transportation service providers offer these strategic shipping options to help drive more costs out of your transportation spend.
In developed economies, e-commerce logistics represents the latest big driver of change in logistics and physical distribution networks, which have evolved substantially over the past 40 years or so. Currently, it remains the case that as e-commerce continues to grow, most shippers, particularly multi-channel shippers, are still only just beginning to work out what this will entail for their distribution network infrastructures. The following eCommerce freight shipping services could be provided by a managed transportation services provider:
Some other core managed transportation services provided by a managed transportation services provider include such standards as:
What other managed transportation services are providers offering that you are seeing that are not listed above? Let us know in the comments below. If you’d like access to these great services, reach out to us today and set up an in depth consultation to your current transportation practices.
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