Outsourcing non-core competencies has been a long-standing business strategy, but for many shippers the decision to outsource freight activities brings on a number of anxieties starting with the perception of losing of control of what the C-Suite believes should be a core internal competency and continues from there. While some shippers may be anxious over the decision to outsource freight activities, the larger market is not and the practice is far more common than others think. Today's logistics technology and business processes within the managed transportation space makes outsourcing seamless to the shipper and its customer base, while providing significant value in price, capacity, market knowledge and overall supply chain performance.
Outsourcing logistics services puts the day-to-day execution in the hands of trusted logistics experts that frees up a shipper's resources and capital to focus on their competitive advantage and growth. According to a recent Armstrong & Associates report, ninety percent of Fortune 500 companies use third-party logistics providers (3PL) for outsourced logistics and supply chain services, which is a strong endorsement to the value in outsourcing to a logistics service provider (LSP).
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.
Inbound freight is typically the last frontier for many companies search for cost savings in their freight spend, as there is an abundance of complexities that are often outside the Logistics & Supply Chain Department's control. When talking about Inbound Freight Management a term often used is Freight Term Optimization (FTO), which is the process by which shippers strategically establish the most advantageous freight terms, while minimizing the total inbound landed cost. The optimal freight terms are influenced by a shipper’s ability to consolidate orders across days, shipments across vendors / customers, order level-level service requirements and the shipper’s ability to plan and execute routing options like multi-stop LTL, static or dynamic pooling, zone skipping, backhauls, etc.