Every shipper is looking to find strategic advantages over their main competitors. The main goal is to find a way to bring the product to the consumer in the most cost efficient way possible. But it’s a constant battle to find the balance of financial savings and service or value. Because of this, a lot of companies are outsourcing their entire transportation department to third-party logistics providers in a market representing over $100 billion in the US alone.
What does this mean for you as a shipping manager? Well for starters, externalizing your transportation inside your supply chain can save you a considerable amount of time and money. External logistics companies have thousands of qualified carriers under contract with the ability to handle your freight. They are able to reduce the amount of infrastructure investments in equipment, software, facilities and personnel. These third party transportation companies manage their own geographic nuances so you can enhance your focus on your own resources and strategies.
One of the other major reasons to externalize your logistics would be to avoid investing in an expensive transportation management system. Most carriers have a system that allows them to track your freight at all points in the delivery process. Thanks to this system, they can consistently evaluate and analyze your shipping activity, which will render a reliable source of information to plan or modify future shipping strategies based on previous patterns and reports. Additionally, the technologies present in most transportation management systems allows shippers to keep a close eye on their loads with online tracking, automated notices, and real-time delivery notifications via e-mail.
Finally, outsourcing reduces back office obligations. External logistical based companies have the ability and the labor to process their own IFTA filings, comply with DOT regulations, and deal with driver HR issues. Time is money and your time should be spent focusing on your core business, not sifting through the mountain of paperwork required to operate a safe and legal trucking and/or transportation company. For more information on how to best outsource your shipping for your specific company needs, contact First Call Trucking and Courier