In our last blog, the FreightPlus team explored what a Managed Transportation Solution (MTS) is and how implementing an MTS can boost efficiencies and reduce costs within a logistics program. Here is a link in case you missed it: Managed Transportation: A Complete Guide.
One of the key benefits of implementing an MTS is that it provides improved visibility and access to data. This enables businesses to track all end-to-end operational and financial aspects of their shipments. By leveraging real-time data and analytics, companies can make better decisions, improve their operational efficiencies, and strategically identify areas for improvement. In today’s ever-changing logistics industry, it is imperative businesses have visibility into their supply chain programs.
In This Blog We Explore:
How an MTS works: The technology & tools that help make it happen
A deeper look at the benefits of visibility to tracking & data
- Customer Service
How a Managed Transportation Solution Works: The Technology & Tools that Help Make it Happen
Managed Transportation Definition: Managed Transportation (MTS) is a partnership where shippers improve their logistics and supply chains through increased operational efficiencies, lower logistics network and organizational costs, improved communication with all supply chain stakeholders.
Transportation Management System (TMS): A Transportation Management System (TMS) is a software platform that manages the end-to-end transportation process, from planning & execution to visibility & analysis. A TMS allows Managed Transportation Providers (MTP) to automate the booking and tracking of shipments, optimize routes, and provide real-time visibility into the status of shipments.
Carrier Management: Managed Transportation Providers (MTP) strategically source and manage a network of carriers to ensure that they have the capacity to move shipments when needed. They also negotiate rates and contracts with the carriers on behalf of the customer to ensure their clients get the best possible rates.
Freight Audit & Payment: Freight audit and payment services are an essential component of an MTS. These services ensure that clients are accurately billed for their shipments and that carriers are paid on time. Managed Transportation Providers (MTP) use technology to automate and streamline the auditing and payment processes, which helps to reduce errors and improve efficiency.
Business Intelligence & Analytics: Managed Transportation Providers leverage Transportation Management Systems (TMS) and integrations with business intelligence (BI) & analytics tools to gain valuable insights into their customers logistics programs. This data helps them identify areas for improvement and optimize their clients’ transportation strategies. These tools can also enable clients to make data-driven decisions that can improve their overall supply chain performance.
Customer Service & Support Managed Transportation Providers offer customer service and support to their clients to ensure their transportation needs are being met. They provide a single point of contact or dedicated team for clients, which helps to streamline communication and improve responsiveness.
Benefits of Visibility to Tracking & Data
Improved Efficiencies: With access to real-time data, companies can make more informed decisions and optimize their transportation operations for greater efficiency.
Reduced Costs: Greater visibility to freight data and rates allow companies to negotiate better rates with carriers and avoid costly accessorial fees.
Improved Customer Satisfaction: With improved tracking and visibility, companies can offer better customer service, faster response times, and more accurate delivery estimates.
More Accurate Forecasting: By leveraging real-time data and analytics, companies can make more accurate sales forecasts and better manage inventory levels.
Improved Financial Visibility: With better access to freight audit software and invoice audits, companies can improve their financial visibility and control costs.
Breakdown of Benefits by Department
This section highlights the specific benefits each department can realize through the implementation of an MTS and the increased access to data.
Operations: With increased data and visibility, the operations department can gain real-time insights into the transportation process. This includes tracking shipment progress, identifying delays, and proactively managing risks & escalations. Access to data and analytics also helps to optimize and maximize transportation routes, reduce costs, and improve efficiency. By leveraging an MTS, operations teams can focus on their core competencies and streamline their processes, leading to increased productivity and profitability.
Finance: An MTS provides cost savings and improved cost control to the finance department by leveraging data to optimize transportation routes, identify areas for cost savings, and minimize freight spend. The improved visibility into the transportation process also enables better management of financial resources, helping finance departments to make informed decisions regarding investments in transportation assets.
IT: An MTS provides IT departments with enhanced data integration and management capabilities that enable them to centralize data from unrelated systems, leading to better data quality and improved decision-making. By leveraging an MTS, IT departments can also streamline the procurement of technology, reducing the need for in-house development and maintenance of transportation software systems.
Customer Service: An MTS can enhance customer service by providing real-time shipment visibility, giving customer service teams the ability to proactively manage potential issues and provide customers with accurate and immediate updates. The improved data and visibility provided by an MTS can also help customer service teams to provide better communication and collaboration with their clients, leading to higher customer satisfaction and retention rates.
Sales: An MTS provides sales teams with the ability to offer improved transportation services to clients, with better visibility and control over the entire transportation process. The data and analytics provided by an MTS can help sales teams to identify areas of opportunity and provide clients with valuable insights into their transportation operations. This leads to increased sales, improved customer relationships, and ultimately increased client retention.