The Benefits of Working With A Transport Management Company

Posted by on Jun 6, 2017 in Uncategorized | 0 comments

Many shippers handle all of their own freight management services, from calling in pick-up requests, to auditing and paying their own freight bills. The stand out benefit that first peaks a shipper’s interest is that, on average, a company specialising in Transport management services in Hertfordshire can save your company 8-15% on freight rate spend alone. It is very rare that you employ a transportation management provider and not see direct freight savings right off the bat. However, there are so many other benefits that come with a freight logistics provider than just money savings. In this article, we will discuss all the benefits that an experienced transportation management provider will bring to your company, giving you more time and less headaches. Working with a transportation management company should not only make your shipping processes run more smoothly, but should bring higher efficiency to your overall supply chain, and company.

Freight Accounting

When you onboard a qualified 3PL, one of their services will be freight audit & payment and consolidated freight invoicing. Both of these services will take mounds of paperwork and labour off of your accounting departments plate…not to mention save you money.

Warehouse Efficiency

Once your transportation is managed properly, securing transportation with less delay, your warehouse can also begin to operate at top efficiency. When you have product coming in reliably, the warehouse can stay on schedule for your customers to receive their products reliably as well.

Inventory Reductions

In addition to warehouse efficiency, confidence in your transportation can help you start making more strategic business decisions and can make just in time (JIT) manufacturing run much more smoothly. When you hold inventory in your warehouse, you have cash tied up (sitting product) that is therefore not driving value.

Customer Satisfaction

We all know the struggle of trying to land new customers, it takes a ton of time and effort, which is why keeping your current customers happy is so important. You want them to continue to purchase from you over and over again. Consistently getting late deliveries, having multiple freight claim issues, or incorrectly invoicing are all ways to ensure a customer never purchases from you again.

With the assistance of a transportation management company, your employees and management can all become the most efficient versions of themselves.

Process Enforcement

A transportation management provider will bring with it all types of technology, but most importantly a TMS software that will make managing your shipments a breeze. Your 3PL can also customize your technology so that only the least cost carrier can be chosen, or regulate that they are only choosing the best carriers for specific lanes.

Create Scale as Your Company Grows

As transportation services start to be provided and technology implemented, you will notice many manual processes disappear that used to be tedious tasks for your staff. This is not to say that anyone needs to be fired due to lack of responsibilities, but it does mean that just because your company continues to grow, doesn’t necessarily mean your headcount needs to grow with it.

Focus on Your Core Business

When you know that your transportation department is running as smoothly and effectively, managers can then focus their attention on the company’s core competencies, increasing profitability.

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