Cloud-based transportation management offers a variety of benefits for businesses that operate in the global supply chain. But there are times when it becomes necessary to outsource the entire process thoroughly, which many refer to as transportation as a service. The industry continues to boom, and companies will continue to grow in response to consumer demand. To keep up with the growth, shippers must expand their technology stacks and make scalable solutions that offer real-time visibility and collaboration. Cloud-based transportation management platforms help solve these growth challenges for shippers, and when the right 3PL provider partnership is engaged, businesses benefit from a full suite of technology and transportation as a service.
Why Outdated Approaches to Transportation Management Can Fall Short
Outdated transportation management methods relied on manual processes, physical phone calls, and the hope that your network partners would be available. In addition, shippers were responsible for the whole of their operations, ranging from carrier negotiations through freight settlement and dispute resolution practices like reverse logistics.
It was difficult to see where the optimization opportunity was and what was necessary to achieve the best result.
Technology requires updating and continuous preventative maintenance. Part of the value of transportation as a service is that the 3PL takes on the responsibility of maintaining the software and executing all shipments.
Cloud-Based Solutions That Combine With a 3PL Offer the Biggest Bang for Your Buck
Cloud-based solutions and 3PLs offer a valuable service when dealing with transportation as a service. When joined together, they offer the best avenue for investment and growth. Cloud-based solutions provide more visibility and can be backed up instantaneously. 3PL services can monitor these avenues and provide an extra set of eyes for transportation management with transportation as a service. 3PLs have more experience in managing logistics and can refine their technologies to accommodate shippers’ needs.
That’s also vital to the type of dedicated relationship characteristics and indicative of 3PLs that offer transportation as a service. And as reported by Inbound Logistics, “Dedicated relationships provide enterprises more flexibility since dedicated carrier partners can more closely mirror changes in shipper needs. A collaborative dedicated provider can deliver on critical service metrics and adjust to demand changes, while helping eliminate unfavorable market exposure.” Essentially, collaborative technology only helps management and other team members perform better.
Top Benefits of Cloud-Based, 3PL Provided TMS Platforms
Transportation as a service and combined 3PL services offer several strong benefits that make deciding to outsource all logistics needs and processes more manageable. These include:
- Reduced transportation spend. Upfront costs provide a more significant ROI in the end by monitoring transportation. A TMS platform can track movements and optimize routes.
- Increased use of non-traditional carriers. Many carriers host medium to smaller fleets and operations. Local, reliable carriers can also provide world-class service because they are smaller. A 3PL opens the door to these carriers and business partnerships.
- Opportunities to leverage network size to enable freight consolidation. Millions of miles driven every year are empty. Leveraging the network size will help reduce the amount of deadhead for drivers, which can also help to reduce tender rejections among carriers too.
- Faster acceptance for high-priority shipments. A system in place for centralized data will reduce the amount of verification for high-priority and frequent shipments while allowing for faster acceptance and increased throughput.
- Reduced risk for damage to the freight. Damaging freight results in profit-loss for everyone involved. Cloud-based technology and a TMS can track the packages and prevent and alert to issues. They can further help to recapture costs for filing damage claims when necessary.
- Fewer overlooked errors in invoicing. Reducing back-office work. When this process becomes automated, many of the hours spent performing back-office audits and claims management for overpayment or overbilled amounts reduce.
- Around-the-clock, anywhere access empowers global operations with advanced metrics and data. The final core to a combined approach goes back to accessing and tracking and improving performance data within the system and working with the 3PL from anywhere. A true path to transportation as a service means integrating with your existing WMS, OMS or other business systems. The interconnected exchange of information leads to data-driven process management and decision making.
Reap the Rewards of Cloud-Based Technology and Dedicated Transportation as a Service
Partnering with a 3PL to combine workflows and set automation through transportation as a service can help launch business to the next scale. Learn more about how cloud-based technology and transportation as a service helps your business create supply chain resilience and competitive advantage. Learn more by connecting with GlobalTranz now.