Benefits of strategically Outsourcing Transportation Management

It gives instant access to expertise without having to train or hire a team member. Outsourcing also simplifies operations, spot inefficiencies in supply chains and solve logistical challenges to help operations run even more smoothly.

Advantages of outsourcing transportation management:


Creating Efficiency Through a One-Stop-Shop

anything that moves by more than one method of transportation can get complicated fast. For example, for an ocean freight shipment, a trucking company has to be hired to take the shipment to port, where it is loaded on board with the contracted steamship line. Then, another trucking company delivers the shipment to its final destination. For this one shipment, one may need to talk to three separate carriers, each with their requirements, procedures and invoicing. However, if one decides to outsource this leg to a freight forwarder, they can act as a one-stop-shop to get the goods where they need to go. The goods need to be bought to the depot, along with a bill of lading which shows where the delivery goes. A freight forwarder would handle everything from there right from getting the goods from the distribution center to the stores that need them.


Spotting Inefficiencies That Cost Money

When one outsources their transportation management to an experienced vendor, they get immediate access to expertise that might take years to develop in house. Transportation is what freight forwarders do every day. As a result, they know how to spot opportunities for efficiency and, as a result, cost savings. When one chooses a professional transport management partner, they will be able to find the most cost-efficient way to get freight from point A to point B. While one could equip an employee to establish that expertise—or appoint an in-house logistics professional—hiring a freight forwarder offers another chance for cost-cutting. Freight forwarders work with established partners with whom they do significant business.

Solving Logistical Challenges Conveniently

While it’s effortless to focus on getting your stock to stores, a lot of retail businesses face challenges on the other end:

  • Shipping returns to a central location for processing.
  • Returning re-usable packing items, such as plastic totes and wooden crates, to their warehouses for their next use.

Whereas this set of logistics might give rise to an internal headache at a company, it falls squarely in the wheelhouse of a freight forwarder with transportation management efficiency. As with getting inventory to the right places, the right partner can help create an efficient system to close the loop. They can also execute it seamlessly.

When all the advantages are combined, one can start to imagine the impact that outsourcing transportation might have on one’s business.

In the retail market, a transportation management partner takes over as items leave the distribution center. They take care of all the logistics through and including receipt at retail outlets. If there are any returns, they can manage to return those to the distribution center, where the cycle starts again.

Within a manufacturing scenario, imagine turning over all the shipping and delivery of the components to a transportation management partner. They could work directly with the vendors selected to transport components to one’s manufacturing locations as needed.

There is no need to negotiate to ship with vendors. No need to arrange for carriers. Once the items are sourced and the order is placed, the freight forwarder does all the work in between to make sure the goods arrive smoothly to the warehouse. Once the products are ready for delivery, the same forwarder can arrange for transportation as well.

Head Office

22, Swallow Lane,
Kolkata-700001, West Bengal, India

Corporate Office

101, The Chambers, Hanuman Mandir, Hanuman Road, Western Express Highway, Vile Parle (East), Mumbai - 400 057 (India)