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The Value of Managed Transportation Services and What It Is

Managed transportation services are an important part of any company’s supply chain, offering various benefits from cost savings to improved visibility. The value proposition for managed transportation services is unique in that it offers the ability to manage the entire shipping process, from carrier selection and tendering to tracking and payment. It’s a comprehensive solution that can help streamline logistics operations and save money in the long run.

What is Managed Transportation?

Managed transportation (MT) is a third-party service that helps companies optimize their logistics operations by providing multiple transportation solutions. This often includes selecting carriers, setting up contracts, allocating resources, tracking shipments, and managing payments. It also involves managing customer service requirements such as billing, claims resolution, data analysis, and reporting. The goal of managed freight transportation services is to provide a streamlined process that reduces costs while maintaining or improving service levels.

Benefits of Managed Transportation Services

Managed transportation services offer numerous benefits for businesses looking to streamline their logistics operations. Below are some of the top advantages.

  1. Reduced Risk

    With managed transportation services comes reduced risk as organizations can rely on experienced professionals who understand the nuances of shipping regulations and procedures that must be followed when transporting goods across borders or between countries. Having experts taking care of all details related to shipping documents and processes associated with international transportation will reduce potential risks related to regulatory compliance issues while improving overall shipment accuracy. Additionally, with managed transportation services, there will be fewer opportunities for errors since all tasks associated with freight management will be handled centrally by a single provider reducing possible instances where incorrect information could lead to costly wrong deliveries or late arrivals due to incorrect paperwork being filled out prior pick up or delivery dates not noted accurately.
  2. Cost Savings

    One of the biggest benefits is cost savings due to increased efficiency in managing the entire shipment process from beginning to end. Managed transportation helps eliminate wasteful practices by utilizing technology to simplify processes such as carrier selection and tendering, load scheduling, tracking, and payment reconciliation. As a result, companies can realize significant cost reductions through better utilization of capacity and optimized routing decisions.
  3. Improved Visibility

    Another benefit is improved visibility throughout the shipping process, leading to enhanced customer service capabilities. With managed transportation services, companies have complete control over their supply chain, allowing them to identify issues with shipments before they become major problems quickly. This type of real-time visibility into orders allows businesses to anticipate delays or disruptions before they occur, which can reduce costly outages or delivery delays due to unexpected circumstances outside their control.
  4. Improved Efficiency

    Finally, one of the key advantages of managed transportation is improved efficiency throughout your entire operation since all tasks related to freight management would be handled centrally by one provider instead of several different departments, potentially leaving gaps where communication could break down, leading to delays in processing orders. Companies using managed transportation will benefit from real-time updates regarding shipment status, allowing them better prepare for any potential delays providing customers with more accurate delivery times, and increasing customer satisfaction rates resulting in repeat business opportunities.

Discover the Value of Managed Transportation Services

Managed transportation provides an extensive list of benefits for organizations looking for improved efficiencies within their supply chain network and decreased costs. Businesses should consider if managed transportation services would help them achieve these goals and improve their overall customer service capabilities.

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