Transportation News

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.

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.

Take back your operations because you don’t need a 3PL. Not anymore with Kuebix by your side.

Related Article: How a Transportation Management System Benefits Any Size Business That Moves Freight

Related White Papers & eBooks

Download the Paper

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!


Download the Paper

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!


Download the Paper

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!


More Resources from Kuebix


Article Topics
Best Practices   Transportation   Transportation Management   3PL   Third Party Logistics   TMS   All topics


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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.

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

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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.

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