Definition of Freight Accessorial Charges: Accessorial freight charges are fees added to a shipper’s freight invoice for services the motor freight carrier performed beyond the standard pick-up and delivery operation designated at the time a shipment is tendered. The additional charges cover a wide variety of services outside of the line haul charge and fuel surcharge that are in connection with the transportation of goods.
Definition of Managed Transportation Services Solution: Managed Transportation Services Solutions (Managed TMS) involve shippers outsourcing their freight and logistics processes to a third party logistics (3PL) provider.
Everything you need to know about domestic intermodal and how to be successful implementing it into your logistics strategy. Gives tips, tricks and insights on intermodal and what to watch out for when converting from truckload to intermodal.
Definition of Logistics Logistics and logistics management is a subset of processes that fall under supply chain management that plans, executes, reports and coordinates the movement of goods within an organization’s network of stakeholders that include: Suppliers Production & Manufacturing Packaging Distribution Customers The goal of logistics is to move product efficiently and securely from point A to point B at the least cost and best service. Components of Logistics Include: Inbound Freight Outbound Freight Warehousing Materials Management Order Fulfillment Inventory Planning Demand Planning Logistics is managed by companies through a transportation management system (TMS) that allows users to optimize and manage its logistics in a control tower fashion giving all stakeholders full visibility to future, current and past freight movements of goods through its supply chain. The TMS platform also allows users to report, model, analyze and optimize a shipper’s freight movements for continuous performance improvement. Companies can either manage their logistics internally or outsource the activity to a third party logistics company (3PL). Professional Organizations Associated with 3PL's: Counsel of Supply Chain Management Professionals (CSCMP) Transportation Intermediaries Association (TIA) International Warehouse Logistics Association IWLA) Other Article of Interest: 2019 Best Transportation Management System (TMS) Software Packages Benefits of Managed Transportation Services: Comprehensive Guide How Much Does Managed Transportation Services Cost? A Comprehensive Pricing
Definition of Third Party Logistics Company (3PL) A third-party logistics company (3PL) offers outsourced logistics and supply chain service solutions for shippers. A company can outsource all or just a portion of their logistics requirements. According to Armstrong & Associates the third party / contract logistics market size is $184.3 billion. 90% of Fortune 500 Companies utilize a 3PL in their logistics and supply chain strategy. Third Party Logistics Services: Freight Brokerage Freight Management Freight Consolidation Freight Audit & Pay Inventory Management Warehousing Order Fulfillment Final Mile Customization Technology When companies outsource logistics functions, they can either choose a single service or bundle the above services to craft a customized logistics services solution that best fits their company's needs. Third Party Logistics Benefits: Cost Savings Reduce Capital Requirement Scale & Flexibility Gain Expertise & Knowledge Technology Third party logistics service relationships can be: Transactional The 3PL is used on an as needed basis with no long-term contract. Tactical The shipper and 3PL have a negotiated long term agreement outlining services and prices. Strategic The shipper and 3PL have a negotiated long term agreement outlining service management fee, with a pass through on all costs making for a fully transparent relationship. Professional Organizations Associated with 3PL's: Counsel of Supply Chain Management Professionals (CSCMP) Transportation Intermediaries Association (TIA) International Warehouse Logistics Association IWLA) Other Articles of Interest: When to Use a Freight Broker in Your Logistics Strategy Benefits of Managed Transportation Services: Comprehensive Guide How Much Does Managed Transportation Services Cost? A Comprehensive Pricing Comparison between Freight Broker and Managed Transportation Services Freight Operation Models
Definition of Freight Consolidation Freight consolidation is a logistics strategy where a shipper combines multiple shipments within a particular geographic region into a single shipment container that is then line hauled to a destination point where the smaller shipments that were part of the consolidation are broken down and shipped to their final destination or the single shipment is delivered directly through to final destination. Quick Video Demonstrating Consolidation & Pool Points
Weekly discussion and analysis on the trends in the intermodal spot rate market. The InTek intermodal spot rate index decreased 0.5% over prior week.
Definition of Reefer Freight Reefer freight refers to refrigerated and temperature controlled freight movements and equipment used to transport perishables or other temp-controlled freight.
Definition of Freight Broker A freight broker is an individual or company that is contracted by a shipper to be a liaison between the shipper and a motor carrier to facilitate the movement of their property from origin to destination by accessing its vast network of carrier relationships.
A common question for both large and small shippers is whether they should engage a freight broker to help them fulfill their freight and logistics requirements.
Definition of Less-than-Truckload (LTL) LTL is used when a shipper has more than a parcel shipment, but less than a full truckload.