Managed Transportation Services: It’s About More than Simply Moving Freight
Shippers are increasingly turning to Managed Transportation Services providers for help in managing the increasing complexity of their supply chains. In this second article in GlobalTranz’s and FreightWaves’ “High Tech, High Touch” series, Ross Spanier, SVP Sales & Solutions for GlobalTranz explains that there is more to a successful Managed Transportation Service partnership than simply moving freight.
“It’s become a requirement that managed transportation providers go beyond transportation to take a more consultative approach,” he says. “Shippers are asking, ‘How can I leverage data and predictive analytics to anticipate market volatility, to inform my buying patterns, and streamline my warehouse operations?’ Only a provider with a truly consultative approach can help tackle those challenges.”
To read the full article, please visit FreightWaves.com.
To read previous articles in the series, please click here.
Getting a Tech Edge: How Managed Transportation Providers Offer Shippers an Advantage
As shippers struggle to manage the increasing complexity of their supply chains, many are turning to Managed Transportation Services (MTS) providers for help.
In this article from FreightWaves.com, Ross Spanier, SVP Sales & solutions for GlobalTranz, shares his perspective on the benefits of partnering with a Managed Transportation Services provider, including access to cutting-edge technology, high-quality capacity, talented experts, and enhanced business intelligence.
Perhaps most importantly, according to Spanier, is partnering with a provider that supports their technology and service offering with consultative, strategically-oriented team members. “Part of the value in the technology is the people supporting it,” he says. “Talent is something that [customers] look for; people that will learn their business and help them on a strategic level. That can be missed.”
To learn more, please visit FreightWaves.com.
GlobalTranz Executive Chairman Bob Farrell To Appear On Supply Chain Now Radio
Tune in to Supply Chain Now Radio on Monday, February 28, 2019, to hear GlobalTranz executive chairman Bob Farrell and a distinguished line-up of guests, including U.S. Congressman Drew Ferguson, Steve Banker from ARC Advisory Group, Dr. Manjeet Singh from DHL Supply Chain, discuss the latest trends in supply chain and logistics.
Broadcasting live from the SMC3 Jump Start Conference, Supply Chain Now Radio (SCNR) spotlights the best in all things Supply Chain: the people, the technologies, the best practices, and the critical issues of the day. With over 3 million downloads in the last 2 years, Supply Chain Now Radio has become an important source for supply chain and logistics news and information.
In addition to his appearance on Supply Chain Radio, Farrell is slated to speak on the panel “E-commerce And The Changing Freight Landscape,” at Jump Start on January 28th.
For more details, and to listen to Supply Chain Now Radio, please click here.
Richard Vega, an authorized agent of GlobalTranz, shares his experience from attending the GlobalTranz Annual Freight Agent Conference.
“A routine day consisting of sales calls, customer service, and meetings leaves little room to build on my knowledge base. Our industry is rapidly evolving, and our competition is evolving with it! I am grateful for the GlobalTranz Agent Conference and recommend it for all who are seeking to keep up with the times and/or stay on top of the competition. The conference sets the stage for your success. I look forward to the upcoming 2019 Agent Conference and its platform which motivates me to stop, absorb, and strategize! Furthermore, the opportunity to connect with GlobalTranz team members during the Open House is a definite bonus. I can’t wait to pick their brains yet again!”
Freight Nation, LLC
Interested in attending the 2019 GlobalTranz Freight Agent Conference? Click here to register.
Eric Simon, an authorized agent of GlobalTranz, shares his experience from attending the GlobalTranz Annual Freight Agent Conference.
“I have been attending the annual GlobalTranz Agent Conference since 2010, and I encourage all GlobalTranz agents that are serious about growing their business to attend and participate.
As an agent running your business, it’s hard to find the time to step back, get some perspective, and assess what is and is not working in your business today. Attending the GlobalTranz Agent Conference affords you that opportunity to work “on your business”, by providing you with the latest on industry trends, best practices from agents nationwide, inspiring ideas from insightful speakers & colleagues, and of course, the latest info on how GlobalTranz can support your business.
I have been known to say that GlobalTranz is not Subway- that is, they don’t teach you how to make the sandwiches! However; what GlobalTranz does provide is the knowledge, tools, and resources that enable agents the opportunity to make the best sandwiches they can. The GlobalTranz Agent Conference is where a lot of that knowledge will be imparted.
We are fortunate to have such a dedicated and passionate team at GlobalTranz corporate to provide a forum for enhancing our businesses. The annual conference focuses on building a culture of collaboration, innovation and teamwork with each agency to achieve our collective success.
If you’re still not convinced, remember that the GlobalTranz IT team will be sharing key information about the new GTZconnect platform. You don’t want to miss that!”
Integrated Freight Logistics, Inc.
Interested in attending the 2019 GlobalTranz Freight Agent Conference? Click here to register.
The 2018 economic surge has pushed freight demand past available capacity, impacting shippers’ budgets with rising transportation costs across all modes. Many analysts anticipate bullish freight markets through 2020, which has shippers looking for new ways to manage costs, secure capacity and drive efficiencies.
With RFP season upon us, here are 10 tips for shippers to consider when planning transportation budgets and sourcing logistics partners.
1. Consolidate shipments to increase volume: Consolidating shipments decreases overall costs by increasing volume and efficiency. It also helps avoid loading dock congestion and can result in fewer accessorial charges.
2. Leverage locations and condense length of haul: Shippers can save time and money by strategically using distribution centers and condensing length of haul based on the location of customers. Using a nationwide network of warehouses to shorten line hauls will also help decrease the cost of transporting products to final destinations.
3. Understand paper rates vs. truck rates: Sometimes what looks straightforward on paper, like line-haul distance, doesn’t reveal additional details that could affect a bid, such as pickup or delivery appointments and loading dock hours of operation. A simple 100-mile haul on paper could take two days if the consignee cannot accept a shipment that arrives after 4 p.m., which would increase the cost. Make sure to provide enough background information, so you receive accurate pricing.
4. Become a shipper of choice: Today’s capacity constrained environment, with more freight than available trucks, has carriers and drivers in a position to choose which shippers and loads are the most lucrative for their business. Shippers who provide better experiences for carriers can reap long-term benefits in the form of higher service levels, fewer claims and better rates. To be a shipper of choice, run efficient and friendly dock operations, reduce driver wait times, provide comfortable breakroom and restroom accommodations and pay carriers quickly and accurately.
5. Contract consistent freight volume: With consistent volume on repetitive lanes, 3PLs like GlobalTranz can secure and negotiate contractual capacity, while leveraging their network to cover backhauls for those loads. As a result, service levels and on-time performance will improve.
6. Drop trailers for high volume: With the ELD mandate and HOS rules, carriers have become more conscious of loading and unloading time. Drop trailer programs create flexibility for shippers to load trailers at their own convenience, reduce the cycle time for loading and unloading, and provide ample planning for carriers to align power units and drivers’ hours of service. All of this helps keep freight costs down and mitigate capacity challenges during dynamic freight markets.
7. Leverage data: Data is becoming a company’s most valuable asset. Many businesses have access to a lot of data, but lack the tools to make decisions from it. In logistics, cost savings and efficiency improvements are tied to a company’s ability to leverage their data and make actionable decisions. Tech-enabled 3PLs like GlobalTranz have advanced analytics capabilities to develop custom transportation programs and solutions during an RFP process, using shipper data to identify optimization opportunities for overall cost savings.
8. Communicate objectives and important KPIs: Service quality is as important as price, so be sure to communicate key performance indicators (KPIs) with potential service providers. Quality logistics service providers will hold themselves accountable and benchmark for continuous improvement to ensure they’re helping make an impact on your business. On-time pickup, on-time delivery and tender acceptance or rejection percentages are a few examples of important KPIs.
9. Plan and budget for high-demand periods of the year: Look ahead and remember there will be times during the year where higher-demand for capacity could impact your costs. Produce, harvest and holiday seasons place a higher demand on the nation’s trucks, which in turn could increase rates.
10. Establish strategic partnerships: Instead of focusing on price and commodity-based services, look for ways logistics service providers can be consultative and bring value-added operations to your business. A strategic partner is constantly looking for opportunities to save your company overall costs. The most effective partnerships evolve when you integrate your firm’s ERP and supply chain systems with a TMS to provide end-to-end supply chain visibility.
Growing complexity in the supply chain demands innovative and consultative approaches to logistics management. To learn more about selecting the right logistics partner, call 866.275.1407 to speak with an expert or Contact Us.
Transportation leaders today are faced with increasing buyer delivery demands, capacity challenges, government regulations, fluctuating rate markets and the overall digitization of supply chains. At the same time, they are pressured with managing day-to-day transportation processes, usually without specialized staff or an adequate number of internal resources, while trying to control or reduce transportation costs.
Many transportation leaders utilize freight brokers and logistics service providers to help them manage their transportation operations and access a network of providers. But transportation managers are increasingly hungry to take their logistics operations to the next level. They are looking for more consultative partnerships rather than transactional relationships in search of additional value-add. They’re looking for solutions that consider the unique nuances of their business, products and customers; solutions that drive efficiency and control costs, especially in today’s dynamic logistics market.
That’s where managed transportation services come into play.
Transactional Services vs. Managed Transportation Services
At a high level, managed transportation services include the outsourcing of all or part of a company’s internal logistics operations throughout the order-to-cash lifecycle. The typical asset-based or transactional-based logistics services provider relationship consists of a planner at the shipper telling the provider the mode, lane, and details about the shipment in search of cost or service fulfillment, then the provider executes that shipment.
In a managed transportation arrangement, the shipper’s planners are employed by the logistics services provider, who receives a feed or download of shipments from a shipper’s enterprise systems, performs all planning – rating, sourcing, consolidation, optimization, etc. – and then executes the loads.
Managed transportation service utilizes a consultative approach beginning with an in-depth discovery process and needs analysis to identify client business goals and define success measurement benchmarks. Based on a company’s specific supply chain needs, a customized transportation roadmap and design is developed, then executed by the logistics services provider. All operations – from rate negotiation to freight payment and auditing are outsourced to the logistics provider.
From the technology perspective, the foundation of a successfully managed transportation relationship is the integration of all applicable business systems based on client requirements, including ERP, WMS, order management and more. The higher the level of integration, the greater the opportunity for a logistics service provider to reduce a company’s manual efforts and increase their efficiency.
Managed transportation technology services include the combination of a leading edge TMS and business analytics to provide client stakeholders with a pulse on their business (i.e. KPI’s, self-service and custom reporting, heat maps, etc.). Additional optimization tools for network analysis and design are used to look at Macro level supply chain opportunities.
Managed transportation is truly an integration of people, processes and technology dedicated to shippers’ specific supply chain needs.
With managed transportation services, a team of consultants will get to know your business from all aspects. They configure solutions to reflect your growth path or specific needs.
When one of the largest telecom providers asked GlobalTranz to help them transform their logistics function from a decentralized model to a centralized model, we helped them understand the current state of their supply chain and developed a customized multi-year roadmap toward a centralized function.
A true consultative managed transportation partner won’t pull a solution off the shelf or stuff your business into a box. They’ll develop custom solutions based on the maturity of your company’s supply chain function, freight spend, headcount, volumes, business goals and other considerations specific to your business. It’s truly a mutually beneficial partnership.
Look Beyond Rates
Given the tight capacity and rising rates in today’s market, it’s no wonder that shippers are looking for any way to drive down costs. Shippers are starting to realize they can’t buy transportation based on rates alone. Managed transportation services help drive efficiencies and best practices into supply chains to reduce costs over the long term.
Managed Transportation Services combined with advanced TMS technology help shippers make their logistics operations a competitive advantage. Shippers can utilize managed transportation partners for strategic planning, such as determining if their hub and spoke distribution model works, the most efficient location for a new distribution facility or where to source products based on total landed cost.
Do You Need Managed Transportation?
Growing complexity in the supply chain demands innovative and consultative approaches to logistics management. If you are a transportation leader looking to drive cost savings, efficiency and visibility, focus on your core competencies rather than logistics operations, and leverage logistics as a competitive advantage, it’s time to consider managed transportation services.
Learn how Managed Transportation services can drive overall cost savings and efficiency into your supply chain. Request a logistics and freight needs analysis: Call 855-444-6608 or Contact Us.
As we’ve shared with you in a recent article, today’s freight landscape has been transformed into a carrier’s market. For the first time in many years, drivers and carriers find themselves in a position to choose which shippers they most want to work with, giving rise to the shipper of choice environment.
According to JOC.com (The Journal of Commerce), many carriers and drivers are collecting data that helps identify inefficiencies with shippers across the country. “Shippers might be surprised by how much data their trucking suppliers have on them: enough to pinpoint problems at specific docks across the country. That directly affects both the price of trucking for those shippers and whether they get a truck at all,” noted a recent article.
Driver feedback is being collected by both large and small carriers to monitor shipper inefficiencies and issues. To stay on the best terms with your carriers, shippers should be more vigilant than ever when managing dock operations and promoting driver accommodation.
Using a TMS to be a Shipper of Choice
Technology has become a perfect enabler to help shippers create more efficient collaboration with carriers. Here are 5 ways shippers can use an advanced TMS to become a preferred shipper.
Read more tips for becoming a shipper of choice.
Looking for a TMS vendor that can position you as a shipper of choice? Call 866-275-1407 or Get a demo.
When weekend promotional giveaways at a Las Vegas casino were delayed due to customs issues, GlobalTranz expedited shipping picked up the load from the port and transported it to the casino in time for the big event.
Traditionally expedited shipping has been used to solve these kinds of challenges. When a shortage of materials or components could shut down the production line, or impact a big event, expedited delivery saves the day. However, shippers across all industries are also finding that customized expedited shipping services can help them meet the increasing delivery demands from consumer and business buyers.
Expedited trucking typically operates with three levels of vehicles: straight box trucks, vans, and hot shots or heavy-duty pickups towing trailers such as boxes and flatbeds. Expedited shipping carriers don’t face the same capacity challenges that leave truckload and LTL carriers to increase rates while scrambling to fulfill their commitments.
Here’s a look at why more shippers are looking at expedited shipping as an integral component of their supply chains.
Expedited delivery services typically involve dedicated Point A to Point B shipments of must-have products in less than truckload quantities, by truck or by air, with service guarantees. Because the vehicle is dedicated to the shipment, the rate is basically the same whether the load is one pallet or ten pallets.
Expedited shipping services make the most sense when the product is urgent or time-critical. Basically, any commodity can move in expedited service, from manufacturing raw materials and components to food and beverage products.
Rates are higher than standard LTL or truckload service, but in most cases, shipping cost is not the issue. Shutting down an assembly line to save a few thousand on shipping costs doesn’t make sense. Instead, transit time is the top factor for choosing expedited shipping, although shippers value customized handling as well.
The smaller trucks often used for expedited shipping operate under different hours of service regulations than full-size semis, so they can generally cover the same distance in less time.
With expedited truck service, the shipment moves directly from shipper to consignee in the same truck. Compare that with LTL operations that usually require cross-docking or unloading and reloading freight at a terminal.
With expedited shipping, there’s no en route handling, so there’s less chance of damage or loss. Of course, LTL and truckload shipping offers a high level of quality, but, expedited shipping provides a higher level of customized service.
Expedited shipping services can save the day with shipment diversion. That’s when a shipment is moving in truckload or LTL service, but it’s not moving fast enough. Perhaps an assembly line needs two days worth of parts to keep it operating until the full shipment arrives. An expedited carrier can divert all or a portion of the load and move it to the destination so the assembly line can stay open.
Currently, expedited trucking rates are more stable than truckload and LTL rates as carriers work through capacity challenges and productivity impacts from ELD implementation and the driver shortage. Typically expedited carriers are standing by to move your loads at rates that aren’t inflated by short-term fluctuations.
The GlobalTranz expedited shipping group also manages domestic and international air freight and domestic ocean freight. GlobalTranz is an indirect air carrier certified by the Transportation Security Administration (TSA). As an IAC, GlobalTranz has developed a security program that meets TSA requirements. The company is also a member of the Air Forwarders Association to keep up to date on the federal regulations.
Shippers of high-value cargo, such as consumer electronics, often use air freight to reduce the possibility of damage and move products through their supply chains faster.
The expedited shipping group also manages domestic ocean freight, such as moving supplies for rebuilding Puerto Rico after Hurricane Maria.
In the aftermath of a storm, like the most recent Hurricane Florence, expedited shipping can be a lifesaver for your supply chain. Expedited shipping services are more agile and responsive when major roadways may be congested or closed. Large trucks must stick to approved truck routes. By using smaller vehicles, the expedited department can facilitate deliveries into natural disaster areas for relief supplies and just-in-time deliveries. We also have the option of combining air freight with ground shipping to reach disaster areas quickly.
Also, when natural disasters occur, prioritization of available trucks goes to transporting relief and emergency supplies over standard freight, which can impact capacity. Utilizing expedited services can help mitigate capacity challenges during those times.
Talk to Experienced Expedited Pros
Expedited shipping can play an integrated role in your supply chain with dedicated, customized service that’s faster than other options. Work with an experienced partner like the GlobalTranz team of expedited shipping experts that connect your freight with approved, high-quality carriers.
Get in touch with the GlobalTranz team of expedited shipping experts; we’re ready to help you move your freight faster.