Many small to mid-sized businesses have a tendency to keep the majority of their operations in house. A cursory comparison between contracting an external shipping management partner and relying on internal personnel and resources seems to favor the former option.
Partnering with a shipping logistics manager can increase long term cost-savings, and improve the efficiency of an organization’s transportation network. The complexity of the logistics environment demands high levels of knowledge and expertise that can only be attained by those who specialize in the shipping industry. The benefits of utilizing a logistics solutions company include:
- Carrier selection tool – An online tool that allows an organization to compare the rates offered by all available less than truckload (LTL) carriers.
- Tracking software – Functions as a monitoring system, which allows an organization to accurately track the movement of freight.
- Reporting software – A system that catalogues the progress – the departure, arrival, and transit time of freight – is instrumental in effective communication.
- Industry expertise – Shipping management providers are able to implement industry leading processes to maximize service level and cost savings.
- Discounts – Available shipping rates and discounts are easy to find using ShipTransportal’s online pricing tool.
- Mode selection – The optimal method of transportation – parcel, LTL, full truckload (FTL) – is selected, based upon cost efficiency and service quality.
- Contract negotiations – Shipping logistics management providers can bargain with couriers to lower shipping cost, even below the price of a market discount.
- Hidden savings – Optimal shipping methods – use of local distribution warehouses, discounts, avoidance of hidden fees, etc.– are explored to produce the best cost-efficient shipping strategies.
Though enlisting the aid of a shipping logistics management partner seems more costly than relying on in house resources, the savings produced make contracting an external partner a worthwhile investment. ShipTransportal has achieved successes that have saved clients as much as 300 percent above their best in house practices.