It is time for the shipper to regain control of their freight operations and use available information to make better shipping decisions every day.
3PL’s can offer reasonable value to companies that need very specialized services or have convinced themselves that they cannot manage their own freight operations.
Outsourcing your operation to an expert can sound enticing but are you overpaying for a service that in this day and age can be done much more efficiently and cost-effectively in-house with the proper technology?
Today any company can get started with an inexpensive or free Transportation Management System (TMS) 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.
1. Better Rates - A TMS will present all of your rate choices from your carriers side-by-side enabling the shipper to make the most cost-effective decisions without paying an upcharge for this service to a 3PL (which can be as high as 20-30%). It is as if you are automatically paying for an exception on every shipment. In fact, Kuebix offers a free version of their TMS.
2. Electronic Tracking - You will now be tracking shipments directly with your carrier. This establishes a direct relationship with your carriers and puts the shipper in a position to hold them accountable.
3. Analytics and reports to better run your business – Information about every shipment regarding rates, on-time pickup and delivery, and invoice exceptions are stored in your TMS and can be presented back to you in the form of dashboards and reports.
4. Automated freight pay and audit – It sounds convenient to get one bill from the 3PL for all of your freight, but what happens when there are mistakes in your invoices? Who audits those individual orders and what tools do you have to research the issues? An effective TMS will automatically audit those invoices and safely let you pay the accurate ones and give you the tools to reach proper settlements with your carriers on the exceptions or errors.
Quite frankly, most of the other key functions of your company - sales, manufacturing engineering, accounting are not outsourced. Freight and logistics management can be a strategic opportunity for your company to gain the visibility needed to dramatically reduce your cost of goods and improve customer service.
Download this eBook and find out how most company’s switching from 3PL’s to in-house management generally save at least 10% to 20% on their overall freight spend in a just few months!