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Managed Transportation Services & Its Benefits

Nobody can deny that management transportation services have developed as an urgent demand. While many shippers handle all aspects of logistics, others outsource their freight and logistics to a 4PL. Read on to learn why management transportation services (MTS) are the finest alternative!

Benefits of Managed Transportation Services

While we can undoubtedly give you a long list of advantages that managed transportation services offer, we respect your time and think scrolling down for three pages takes a lot of work. In response to the question “Why MTS?”. Below are the two reasons we believe are most appropriate to discuss.

Cost savings through optimized routing and carrier selection

First off, when switching to any service we consider the amount we must pay for it. So, MTS not only saves you money but also optimizes routes and assists you in successfully streamlining your supply chain. Moreover, managed transportation services assist in negotiating favorable pricing with carriers on their client’s behalf. As it is said, a win-win situation!

Mitigation of transportation risks and disruptions

Another major benefit of managed transportation services is the reduction of transportation hazards and disruptions. The transportation industry is vulnerable to a wide range of risks and issues that might sabotage supply chains and obstruct the timely delivery of goods. Generally, MTS providers have in-depth knowledge of the industry that not only cuts off extra expenses as discussed but also assists in determining risks and avoiding any possible hazards.

Moreover, by integrating managed transportation services, you will have more access to capacity, supply chain flexibility, and an improved return on investment (ROI).

Transportation Solutions Offered by Managed Transportation Service Providers

To assist businesses in streamlining their transportation processes and optimizing their supply chains, managed transportation service providers provide a variety of transportation solutions. Among the most important transportation alternatives provided by these companies are as follows:

Freight brokerage and carrier management

First and foremost, there is freight brokerage and carrier management. As mediators between shippers and carriers, managed transportation service providers leverage their wide network to provide clients with the best rates in the market. In addition, many logistic service providers, like Polo 4PL, handle not only the management process but also the process of finding, negotiating, and managing carriers. This ensures that the appropriate carrier is chosen for each shipment based on your unique requirements, such as cost, service level, and capacity.

Route optimization and load consolidation

Overall, a strong logistics company optimizes transportation routes and consolidates goods by using advanced technologies and algorithms. Then, they identify the most efficient routes and possibilities to combine many shipments into a single truckload. This lowers transportation costs, reduces empty miles, and boosts overall efficiency.

Freight auditing and invoice management

Many managed transportation service providers, such as Polo 4PL, provide freight auditing services to verify invoice accuracy and legality.  Our specialists first evaluate the bills, then verify the rates and charges and look for any oddities or billing problems. This audition helps businesses prevent overpayment and ensures that they are properly billed. Additionally, we handle freight invoice monitoring and processing, decreasing your company’s administrative burden.

Real-time tracking and supply chain visibility

Here comes the bull’s eye of your supply chain! Whenever dealing with a logistics provider, it is always a good option to stick to one with integrated cutting-edge technologies. For example, having a real-time tracking system allows you to take your freight shipment to the next level and control your consignment over long distances. This is especially important if the company you work with also handles warehousing and storage. 

Performance analytics and reporting

Finally, if you team up with an MTS provider, know that your supply chain’s target has been hit! Almost all managed transportation service providers collect data and employ cutting-edge technology to provide insights and performance reports. You will be able to constantly monitor and enhance your transportation operations taking your business to the next level.

Factors to Consider When Selecting a Managed Transportation Services Provider

Here comes the next challenge: locating a managed transportation services supplier who precisely matches your company’s goals! As the market grows, so does the number of such businesses. However, your search ends here. Take notes and filter the companies you considered based on the following factors. 

Expertise and industry experience

First of all, determine whether the company has relevant industry experience and skills. This will ensure smooth communication and the development of trust. You can evaluate them by looking at their track record, client feedback, and case studies.

Technology and software capabilities

Then comes technology and software capabilities. Lookout for service providers who use cutting-edge transportation management systems (TMS) and other cutting-edge solutions to optimize routing, track shipments, and offer real-time visibility. 

Network of carriers and global reach

The larger the network, the easier it will be to find the perfect match. Let’s agree that having a partner with a vast network is more than just winning a jackpot.  You will meet your logistic targets simply by selecting the ideal match, as they will find and provide additional options and flexibility in managing your transportation demands.

Flexibility and scalability

Consider the provider’s ability to adjust to changing business needs later. Having a partner with great flexibility and scalability is a form of backup since you can always develop solutions together when faced with new challenges.  

Customer service and support

Finally, the most important factor to consider; customer service and support. Without a well-developed customer support team, a company can never succeed and streamline the supply chain.  Look for companies that provide dedicated account management, responsive communication, and a dedication to addressing your unique requirements.

FAQs (Frequently Asked Questions) about Managed Transportation Services

How does Managed Transportation differ from traditional transportation methods?

In short, managed transportation service providers provide outsourced knowledge, advanced technology, control, flexibility, cost savings, and risk mitigation as compared to traditional transportation providers who conduct the majority of the procedures manually with limited control and scalability challenges.

What are the typical costs associated with managed transportation services?

There is no fixed price for managed transportation services as most often it is based on several factors: service fee, carrier rate, technology costs, extra services, etc. Moreover, a company’s expertise can also be an extra cost! Yet, the general starting fee is $15-$25 per shipment. 

How can managed transportation services improve supply chain visibility?

Managed transportation services can help you increase supply chain visibility in a variety of ways. One of the most crucial is the TMS, or transportation management system, which provides real-time insight into trucks and freight.  By integrating this, shippers can better assist recipients and carriers can meet delivery windows.

What types of businesses can benefit from managed transportation services?

In short, nearly all the businesses that need to ship their products can benefit from managed transportation services. Yet, it is an ideal fit for e-commerce and retail.

How do I know if my business needs managed transportation services?

When determining whether your company needs managed transportation services, take into account the complexity of your transportation operations, your expertise, and assets in transportation management, and your need for scalability. Place your focus on key skills, as well as any particular transportation challenges, objectives, and resources that you can handle and if you even lack one of the above-mentioned factors, you definitely need a MTS. 

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