FreightPlus CEO Steve Aborn discusses the importance of managed transportation and how it is often overlooked by many companies, in his featured article in Inbound Logistics, “Big Transportation Impacts Small and Mid-Size Businesses.”
Aborn explains how many companies are not effectively tracking meaningful data and how it translates into higher costs for those companies overall.
“Dramatic increases in transportation costs, poor service, and an inability to move products due to limited capacity is a direct result of a strictly transactional program. It is the high price companies pay for not having applied a thoughtful, strategic, and data-driven methodology to a transportation budget that can represent 5% to 7% of total revenues in product-based organizations.”
He also gives insight on the recent Uber/Transplace deal and what that may mean for companies in the logistics industry. Aborn explains that by having better service efficiency and lower costs, larger companies have more leverage to invest in and grow their business.
“It reinforces the concept of outsourcing logistics services even at the highest and most sophisticated levels of the industry. Many of Transplace’s clients spend millions per year and have robust in-house transportation and logistics departments staffed with tenured and experienced industry experts. Yet these well-managed mega-companies find value in partially outsourcing transportation services.”
Aborn touches upon outsourced TMS Companies and how they act as an extension of their client’s transportation departments. He describes how Subject Matter Experts (SMEs), like the team at FreightPlus, can customize transportation management programs to analyze company needs and transportation data to increase client savings and improve efficiencies within the company.
Check out the full article here.