Logistics as a service (LaaS) providers employ logistics professionals to manage a company’s transportation network including truck, rail, ocean and air freight, and inbound/outbound logistics from production facilities to warehouses, retailers, and end users/consumers.
The logisticians are experts at efficiency - always looking for ways to do it better, faster, and for less money.
They understand how ever-changing market conditions, such as capacity issues, driver shortages, rising carrier costs, and customer service demands can impact the supply chain.
According to an ARC report about the return on investment of logistics as a service, companies saved between 2 and 10 percent on freight costs.
The expertise also extends into operating transportation management systems (TMS).
There are a lot of robust TMS solutions on the market, and it takes time and skill to be able to utilize the system’s full capabilities.
To unveil the best practices in transportation management, companies need detailed data that can be leveraged to create and track key performance indicators (KPIs).
Once the data is interpreted, LaaS providers can work with shippers to develop new logistical strategies to better serve customers and reduce costs.
A TMS can bring significant cost-savings to a company, and by using BluJay Solutions, TMS customers save between 2 and 17 percent in the first year of implementation - but it can’t fix everything on its own.
TMS solutions are robust, and while many are very user-friendly, a logistics professional has the experience and knowledge to leverage all of the functionality the software holds.
It’s vitally important that a company do a lot of back-end work to achieve success with a new TMS.
All of the information imported into the system needs to be up to date and accurate for the TMS to provide maximum benefit in its optimization and analytics reporting.
Many transportation teams have started with a TMS solution and then switched to LaaS after determining that they are not fully utilizing the power of their TMS software.
“TMS users need to be very disciplined and continue to explore new functionality to ensure they are getting the most bang for the buck.”
Download this paper and discover how a LaaS provider will increase procurement opportunities, optimize the supply chain, search for process improvements, and explore alternative mode shifts, added including the benefit of shipper collaboration through LaaS.