As the logistics market continues to create supply chain disruption, shippers are looking for consultative support and solutions to help maintain a competitive advantage. Creating trucking efficiency through transportation management optimization is an essential part of supply chain management and network navigation. As reported by Steve Banker of Forbes, “ When a shipper decides it needs to improve its transportation performance, it typically attempts to achieve this by either buying a transportation management system (TMS) or outsourcing transportation planning and execution to a managed transportation services (MTS) provider.” As capacity continues to fall short and lead to lost efficiencies, shippers can benefit from leveraging the regional networks of an MTS provider to strengthens their supply chain.
The Challenges of Only Relying on National Networks
While large national networks comprise a significant percentage of transportation service providers' shipping options, several challenges can arise that regional providers are better equipped to address, including:
- Freight embargoes, duties, taxes, and other restrictions and requirements.
- Capacity limitations and determining where capacity is and what limits may exist.
- Higher rates for local deliveries and destinations due to capacity variations or carrier-set delivery zone surcharges.
Achieving overall efficiency within the OTR trucking industry relies on having access to a network of both national and regional providers.
Regional Networks Open the Door to More Drivers and Added Service Levels
Leveraging regional carrier networks can improve overall supply chain efficiency with advantages that include:
- Access to a greater pool of available carriers to leverage.
- Easier comparison of rates, timeliness, availability, and services.
- Faster deliveries with speedy last mile and local delivery options.
- Better optimization of strategic roles within the transportation network.
- All-in-one access with digital bids, tracking, and communications.
- More personalized service options for a tailored customer experience.
By incorporating the advantages of local, regional and national transportation services, optionality ad efficiency benefits can be realized for shippers and their carrier partners.
Freight Consolidation and a Larger Network Leads to Logistics Efficiency
Maintaining maximum OTR trucking efficiency can make a difference in the transportation industry, especially in times of fluctuation and market instability. Freight consolidation and network diversification can help supply chains in these ways:
- Excess capacity for inbound in one market versus excess outbound capacity can result in better management practices and protocols, along with higher success rates in tight markets.
- Freight consolidation has a tremendous impact on current LTL transportation rates and volumes, which leads to shifts in FT rates thanks to collaboration practices.
- Working with a dedicated solutions partner can help improve essential network operations such as additional onboarding of carriers, which allows for faster, more cost-effective, and enhanced local service quality.
Leverage Regional Carriers by Working With a Full-Service 3PL to Achieve Maximum Trucking Efficiency
Shippers face a constant uphill battle to fulfill customer delivery expectations in a volatile and ever-changing market. Developing and maintaining competitive advantage often requires specialized services and customized strategies to OTR trucking efficiency. Securing growth and ensuring transportation optimization within the supply chain today requires full integration and utilization of multi-modal solutions and technology. Contact GlobalTranz today to request a quote and see how OTR shipping can improve efficacy, profitability, and scalability within the volatile market.