Do you remember when logistics was simpler, when your grandfather only had one person to call for transportation? Let’s call that person Bob, and he would load, haul, and unload your freight for your grandfather without all the hubbub.
The days of these simple and linear supply chains have been replaced by advanced technologies, and dozens, if not hundreds of people in between. There is a literal maze of shipping options, opportunities, overlooks, and ostentatious ways to do something entirely different. Transportation’s complex and worthy of the most confusing imagery possible, and it’s expensive. Speaking broadly, supply chain and logistics costs ate up approximately 10% of a company’s total revenue in the pre-COVID era, reports PwC. While costs have fluctuated over recent years, this percentage is still valid. And together, it means that the costs of logistics are only outweighed by labor costs. So, what’s a shipper to do?
Despite the challenges of an age of endless disruption, there is a way to get more from your supply chain. Your company needs to find capacity and ensure you’re getting the just-right rate, not just the lowest rates. Today's businesses need robust managed transportation services that enhance operational efficiency and integrate seamlessly with global supply chains. Let’s take a deeper look at how managed transportation can enable a higher degree of control, visibility, and efficiency, ergo, cost management, within today’s supply chain.
Consolidation of shipments enables more efficient operations
Consolidating shipments into larger loads minimizes transportation trips. This, of course, depends on your ability to visualize and plan out your shipments and route. But the value is undisputed. Consolidation will significantly cut down on costs and environmental impact, as well as time. For instance, if shipping a large shipment with multiple drop-off locations along the way, it’s still faster than arranging individual trips along the way. This strategy further optimizes cargo space usage, leading to financial savings and improved operational sustainability.
Well, that change means it’s harder to see consolidation opportunities in your operation.
For example, the way you load a pallet could impact how many loads could fit together on that pallet. Think of it as the ultimate Tetris game where each move doesn’t result in losing a game but losing money instead.
Rather than trying to figure out which “Tetris-like” move to make, working with a third-party, as well as leveraging supply chain analytics tools, helps to provide a birds’ eye-view of what’s happening and how to better optimize your supply chain.
Such functions also play directly into your ability to optimize your routes too. Consider this example. Advanced route optimization software minimizes travel distances, reducing fuel consumption and delivery times. Efficient routing ensures that deliveries meet or exceed customer expectations, enhancing service reliability. Such functions come standard when working with a third-party to see supply chain optimization opportunities.
Real-time tracking technology boosts supply chain transparency
Real-time tracking provides businesses with immediate visibility into the status of their shipments. Most often, the idea of real-time traceability pops up when speaking about transportation management system (TMS) functions. Advanced technology to track and trace a shipment enables proactive management of the supply chain, allowing quick responses to potential disruptions and keeping customers well-informed. Enhanced visibility also facilitates better downstream fulfillment, as companies can adjust stock levels more accurately based on actual shipment-level data. Meanwhile, the aggregation of that data amounts to new ways to navigate the changing expectations of customer service.
As another example, IL2000’s TMS is built and designed to enable white-label tracking capabilities. Our clients can pass along that information to their customers, and customers themselves can receive automated tracking emails. Together, this makes your business look stronger and more capable, all without impacting how you actually work.
Scalable solutions support business growth without compromise
Managed transportation solution providers are well versed in adapting swiftly to changes in demand or market conditions.. While there is debate about the future of the economy, the ability to scale is critical to survival in both peaks and lulls. This scalability supports business growth and operational flexibility, ensuring that logistics capabilities evolve in step with company needs. It also helps businesses handle peak seasons or sudden declines in demand without the need for permanent investment in additional resources.
Transportation is also an international sport, meaning there are entirely different rules and requirements to handling domestic versus international less-than-truckload and full-truckload shipments. Working with a team of experts that specialize in navigating the maze of international transport regulations effectively lowers your risk too. Their knowledge helps prevent costly compliance errors and streamlines the process of crossing borders without legal issues.
Such a third-party, centralized view of the supply chain means you can focus more on running your business and let experts handle the strategic logistics activities and core business functions. This integration also enhances data accuracy and reduces communication barriers, leading to more coordinated and efficient logistics operations. However, the alliances forged in working with a managed logistics provider go far beyond the direct improvements to your supply chain.
Working with experts and third-parties means that you will be able to learn more about what’s happening in the world. With less worry on your plate about your operation, you are d ready for the next wave of improvement in your company. Plus, third-party management frees your team to focus on customer service and building the next big product, service, technology, or capability. It’s all up to you what you do with that extra time. Don’t waste it.
Tap the benefits of managed transportation services with IL2000
Remember the example of when your grandfather used to call Bob? Yes, times have changed, but getting the help you need to manage your shipments hasn't. Now you can simply tender the load within the IL2000 TMS or connect with our team, and we’ll take it all from there. It’s like you’re still working with Bob, but Bob has an army of experts who will take on the challenges and overcome them for you!
Advanced transportation management services transform complex logistics challenges into competitive advantages. These advantages enable superior customer expectations in a dynamic global marketplace. Through strategic partnerships, shippers can ensure every load is optimized for cost, speed, and sustainability. They can make every decision based on real-time data. This isn't just possible; it's what we deliver at IL2000. Don't let your business fall behind in the fast-paced world of global trade.
Connect with an IL2000 transportation expert now, and let’s get started crafting a successful transportation management strategy now.