Benefits of strategically Outsourcing Transportation Management
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
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.
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.