You Don’t Need a Third-Party Logistics Provider for Your Transportation Management
Many small and medium-sized businesses want the ability to manage shipments, book loads and track packages using a Transportation Management System, but they feel the cost is prohibitive, not so anymore.
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- Say Goodbye to Your Outsourced 3PL
- The Complete Buyer’s Guide to Transportation Management…
- Effectively Managing Big Data in Your Supply Chain
- Supply Chain & Big Data ÷ Analytics = Innovation
- All Resources
Kuebix provides a transportation management system (TMS) built on the latest cloud technology that is changing how companies purchase and manage freight. The Kuebix platform is unique in that it it will scale to meet the needs of any size company or supply chain, and is ready in a fraction of the…
- Company Quicklook
Shippers that outsource their transportation processes to a Third-Party Logistics Provider (3PL) do it because they don’t have the scale to build, staff and operate the entire logistics operation.
Many e-commerce retailers, manufacturers, and distributors want to concentrate their efforts on selling their products and choose to give up the control of their fulfillment operations.
Plus, many small and medium-sized businesses want the ability to manage shipments, book loads and track packages using a Transportation Management System (TMS), but they feel the cost of a TMS is prohibitive.
Not so anymore. Enter Kuebix Shipper – a free TMS that any size business can use to rate, book, schedule and track shipments across any mode. If you need freight bill audit and payment, advanced business intelligence and order management integrations, Kuebix Business TMS is your best bet.
Kuebix Enterprise TMS offers managed services for compliance, fleet management, resource allocation and more.
There are other reasons to break away from your 3PL. When you outsource your transportation operations to a 3PL, you lose the direct relationship you have with your carriers.
You used to be able to call your favorite carriers to ask a favor, such as shipping an oversize object or needing delivery on a Sunday. When you forfeit direct access with your carriers, you lose the ability to negotiate the unique terms or the right rates that you need to run your business.
Today any company can get started with an inexpensive or free TMS software that puts the control back in the shipper’s hands, paving the way for significant savings and control. Remember the old saying, that if you want the job done right, do it yourself; well nothing can be truer than the opportunity to take control of your own freight operations.
While the 3PL will negotiate rates and terms on your behalf with carriers, the 3PL is in the business of making money and therefore will mark up rates in order to be more profitable. Even if the 3PL provides timely rates for a shipment, the rates may not be the best rate in that lane.
Most companies switching from 3PL’s to in-house transportation management generally save at least 10% to 20% on their overall freight spend.
Some 3PLs will offer to co-manage the relationships with your preferred carriers. But when this happens, carriers typically defer decisions to the 3PL. As a shipper, you will be a small fish in the big 3PL pond, and your voice will not be heard.
This is especially true when you want to offer a variety of shipping methods to your customers. The 3PL will limit your ability for variety by choosing a delivery system that they prefer.
Being in control of your freight operations gives you the analytics and reports to better run your business. Information about rates, performance and invoice exceptions can be used to analyze the performance of carriers over time, holding them accountable for a continuous improvement effort.
Having visibility into what your company is spending on freight allows you to make more informed choices about your operations that can lead to increased profitability.
Switching from a 3PL to the right TMS and management of your own transportation operations can yield 10 to 20% ROI on your freight spend.
Related White Papers & eBooks
Say Goodbye to Your Outsourced 3PL New!
In this eBook, we explain how companies that switch to the right TMS, experience a 10%-20% ROI on their freight spend in a matter of months, and how by taking back the management of their logistics operations in-house they make better shipping decisions every day. Download Now!
The Complete Buyer’s Guide to Transportation Management Systems
There is almost no limit to how a Transportation Management System can benefit your unique supply chain, but the key to success is finding the right one for your goals, so, before selecting a TMS, use the 12 questions in this buyer’s guide to find the best solution for your company. Download Now!
Effectively Managing Big Data in Your Supply Chain
In this white paper, we’ll explain what the term “big data” means to the typical supply chain, introduce effective strategies for managing and leveraging that data, show how one grocer is using predictive analytics to harness its own big data, and explain the “first steps” that companies need to take down the path to effective management of their big data. Download Now!
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