Transportation News

Is Your Logistics Provider a Strategic Partner in Your Supply Chain Operations?

Viewing your logistics provider as more of a supply chain partner and less of a freight middleman will quickly improve the cost and resiliency of your operations.

Ryder Resources

Companies

  • LinkEx is a non-asset based logistics and transportation management company that is customer driven to provide multi-modal transportation and supply chain management solutions to a variety of customers, both domestic and international. At LinkEx, our goal is to provide best-in-class logistics services…

  • OnAsset Intelligence Inc. is the global leader in airborne asset tracking services. The company manufactures wireless devices that monitor all modes of transit including land, sea and air. Products and services include SENTRY wireless hardware and the Vision™ Monitoring Platform. Its flagship product,…

  • Ryder System, Inc. is a leading provider of commercial transportation, logistics, and supply chain management solutions, serving customers throughout North America, Europe and Asia. When it comes to your supply chain, it’s not enough to partner with a provider that understands logistics. Improving…

  • Company Quicklook

You make your business decisions on the best information you can.

But it’s easy to be held back by assumptions that don’t always hold up.

Busting the following two major myths and constituent assumptions will help you make the best decisions you can with regard to choosing a logistics company.

Logistics Providers Work Alone Door-to-Door
Many times companies presuppose that only the particular logistics company they hired will be caring for their goods. While a strong 3PL will keep the strictest of eye on your goods from FOB to cosign, there might be any number of other transportation and logistics companies involved in the process.

The involvement of other companies holds true whether the logistics provider is asset-based, nonasset-based, or a mix. Nonasset-based logistics companies will obviously involve a number of other linehaul, airline, rail, and integrated providers; however, asset-based companies are just as prone to interline their shipments.

The truth is no one company’s network is large enough to handle the volume of shipments required, especially during peak season. Logistics companies are also aiming to deliver maximized efficiency and interlining freight is an easy way to do that.

Understanding that myth shouldn’t make you wary, just conscious of a few implications.

3PL Vetting is Key
Though you shouldn’t assume that the logistics provider you work with will be the only company caring for your freight, you can usually assume that their credibility will stand for their partners as well.

Every 3PL understands that any problem in delivery reflects on them. For that reason, they thoroughly inspect the companies they work with.

Vet your logistics provider at the start to know exactly who you’re dealing with.

Look for 3PLs with Cloud-based Tracking Solutions
Highly specific, real-time freight monitoring solutions are revolutionizing logistics. With GPS integration, it is possible to track the position of a line haul or rail shipment down to the meter. Freight is even able to be monitored for shocks and extreme g-forces during transportation, allowing for finessed damage control.

Finding a logistics provider that delivers this information to you will give you peace of mind and ensure that the 3PL you contracted directly will always have an eye on your goods.

Through my work with Linkex and our partnership with OnAsset, I have witnessed firsthand how impressive an impact these solutions can having on transportation.

Position tracking has allowed us to stop multiple theft attempts and notify shippers that instrument calibration might have been affected during transportation.

It’s even given me the opportunity to monitor a couple late-night police chases through a data-rich online dashboard.

3PLs might utilize the networks of other companies to get your goods to their destination. But some can also keep a near first-person watch over your shipments.

3PLs Are Nothing More Than Middlemen
Logistics providers ensure that your goods make it from point A to point B. But the more oversight that your 3PL is given, the more efficiency they can introduce to your supply chain.

Logistics providers are useful because they have the experience and resources to optimize the efficiency of your supply chain. Anyone that has the power to stamp out costs or reduce your time-to-delivery should never just be considered a middleman.

In fact, the less you view your 3PL as a middleman and the more you come to view them as a supply chain partner, the greater the efficiency they will be able to deliver. A logistics provider that is trusted with managing a large portion or the entirety of a shipping supply chain can enhance overall efficiency dramatically.

There are a few ways that this might occur and being aware of them might help you make smarter logistics decisions.

Increased Oversight Increases Usable Data
A logistics provider can only gather data from the operations that under their purview. Data drives efficiency and the greater control a 3PL is given the more likely it is that they will be able to extract maximum efficiency from your operations.

Lane data can allow a 3PL to combine shipments or find transportation alternatives to reduce costs. Very small adjustments in shipping schedules can compound to deliver radical cost savings. But again, data from operational elements outside the 3PL’s control cannot be used to increase efficiency.

Increased Oversight Mitigates Risk
It seems counter intuitive that increasing your dependence on one logistics provider could help you mitigate supply chain risk. However, increasing a 3PL’s control affords the increased options in system design.

When a 3PL gains a 50,000 ft view of your origin to consignee picture, they can devise every possible integration of transportation. More options means more contingency plans.

In the event of a catastrophe affecting a large geography, wider control will also allow the logistics provider to execute a solution without external coordination beyond direct client interaction.

Reducing the number of parties that have to be contacted, informed, and inquired of during an emergency immediately decreases the time frame for a solution to be implemented.

Viewing your logistics provider as more of a supply chain partner and less of a freight middleman will quickly improve the cost and resiliency of your operations.

Jamie Wyatt is Chief Operating Officer at Linkex logistics (a non-asset based logistics and transportation management company).


Article Topics
Best Practices   Transportation   Air   Motor   Ocean   Rail   Intermodal   Third Party Logistics   Air   Third Party Logistics   All topics


Comments
Be the first to post a comment.
You must be logged in to post a comment. Login.

 
Latest Transportation News
CSX Delivering Profits That Hunter Harrison Was Promising
CSX Executive James M. Foote and his new management team at CSX released record financial results for the third quarter of 2018 and promised to carry out former CEO Hunter Harrison’s vision of a new,…

SMC³ Adds Volume Less-than-Truckload Pricing API to Its Suite of Rating Solutions
The volume pricing API is the newest tool in SMC³’s ever-growing collection of Execution and Visibility APIs - tools that are tailored for efficient, fast and powerful direct-to-carrier LTL communications.

Separating Long-Term Supply Chain Technology Developments from Temporary Industry Disruptors
While technological innovations can revolutionize how supply chain businesses advance, it’s important for all participants to be a little bit skeptical when supposedly new game-changing technologies…

10 Reasons Being a Professional Truck Driver Is Better Than Driving for a Ridesharing Service
Even with great compensation, stability and a path for growth for years to come, job-seekers are turning to ridesharing and other positions over truck driving causing a huge driver shortage in the supply…


 

24|7 Pro Team

The 24|7 Team is your direct pipeline to solutions for your business challenges. It's your opportunity to have supply chain and logistics experts look at your specific challenges and needs, and give you free, no-obligation advice, solutions, and information.

The 24|7 Team will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

1
  Choose a topic for your RFP

Transportation RFP/RFI

The Transportation RFP is your direct pipeline to solutions for your transportation challenges. It's your opportunity to have logistics experts look at your specific transportation challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect software or system can be an indomitable challenge. Using this transportation/TMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

Warehouse/DC Management RFP/RFI

The Warehouse Management Systems (WMS) RFP is your direct pipeline to solutions for your WMS challenges. It's your opportunity to have logistics experts look at your specific WMS challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect WMS solution can be an indomitable challenge. Using this WMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your WMS Request for Proposal list.

Supply Chain RFP/RFI

The Supply Chain RFP is your opportunity to have logistics experts look at your specific challenges and needs, and receive free, no-obligation advice, solutions, and information. It simplifies finding a pool of likely partners, building your knowledge base, and preparing your Request for Proposal list. The companies in the Logistics Planner have agreed to respond to your request for in-depth information and follow-up, and your request is totally confidential.

Software/Technology RFP/RFI

The Software/Technology is your direct pipeline to solutions for your logistics information technology challenges. It's your opportunity to have logistics experts look at your specific technology challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request. Whether it's WMS, TMS, Mobile or Cloud, our pros can help.

The companies listed below have agreed to respond to your request for in-depth information and follow-up. Your request is totally confidential.

Executive Education RFI

The Logistics and Supply Chain Education RFI can help you identify the schools, coursework, continuing education, distance learning and certification opportunities available from leading logistics educational institutions.

Upgrade and improve your logistics and supply chain skillsets. Whatever route you choose—advanced degree, executive education, certification or distance learning—the time and money you invest in your education today can pay off in continued career success tomorrow. Contact leading universities and professional institutions for the information you need to prepare for the future.

Third Party Logistics RFP/RFI

This 3PL Request for Proposal (RFP)/Request for Information (RFI) can help you find the 3PL and 4PL providers that can meet your specific 3PL service challenges and needs. The 3PL companies below will provide free, no-obligation third-party logistics advice, solutions, and information.

Ask your 3PL questions, you'll get answers. Simply complete the information, and detail your 3PL challenges. Then, check off the third-party logistics companies that you want to review your request.

1. Choose an RFI topic.
2. Enter your contact information and challenge.
3. Select companies and optional categories.
4. Submit.


2

Your Information



Your Challenge, Problem or Request *

3

Select Transportation Companies

  • Select All

  • 3Gtms
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • One Network
  • Pitt Ohio
  • Purolator
  • Quintiq
  • SEKO Logistics
  • SMC3


Select Relevent Categories

  • Air Freight
  • Intermodal
  • Motor Freight
  • Ocean Freight
  • Rail Freight
  • TMS

Select Warehouse/DC Management Companies

  • Select All

  • 3PL Central
  • Apex Supply Chain Tech.
  • Honeywell Intelligrated
  • Kuebix
  • Legacy Supply Chain Svs.
  • Swisslog
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Auto ID & Data Capture
  • Automation
  • Conveyors & Sortation
  • Lift Trucks
  • Packaging & Labeling
  • Pallets & Containers
  • Shelving & Racking
  • WMS

Select Supply Chain Companies

  • Select All

  • 3Gtms
  • 3PL Central
  • Amber Road
  • Apex Supply Chain Tech.
  • APICS
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Frontier Business
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • Logility
  • One Network
  • Purolator
  • Quintiq
  • SMC3
  • Synchrono
  • TAKE Supply Chain
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Global Trade
  • Inventory Management
  • Risk Management
  • Sustainability

Select Software/Technology Companies

  • Select All

  • 3GTMS
  • 3PL Central
  • Apex Supply Chain Tech.
  • BluJay Solutions
  • Honeywell Intelligrated
  • Frontier Business
  • Kuebix
  • Logility
  • One Network
  • Quintiq
  • SMC3
  • Swisslog Logistics
  • Synchrono
  • TAKE Supply Chain
  • Zebra Technologies


Select Relevent Categories

  • ERP
  • Sales & Operations
  • Sourcing/Procurement
  • Optimization
  • Transportation Mgmt
  • Warehouse Mgmt

Select Executive Education Choices

  • Select All

  • Graduate Courses
  • Online/Distance
  • Executive Education
  • Certifications
  • Undergraduate
  • Seminars
  • Associations
  • Conferences
  • Tradeshows


Select Third Party Logistics Companies

  • Select All

  • 3PL Central
  • Landstar
  • Legacy Supply Chain Svs.
  • Purolator
  • SEKO Logistics
  • Westfalia Technologies


4
 

24|7 Company Profiles