317-208-5565
What is Managed Transportation Services & Its Benefits? Blog Feature
Anna Young

By: Anna Young on June 17th, 2019

Print/Save as PDF

What is Managed Transportation Services & Its Benefits?

3PL | TMS | Managed TMS | Managed Transportation Services | LSP

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.  

Third party logistics companies offering this service are often called logistics service providers (LSP’s). 

Functions managed by 3PL's in a Managed TMS solution:

  • Sourcing & Procurement
  • Freight Carrier Optimization
  • Planning & Execution
  • Freight Audit & Pay  

By partnering with a professional logistics service provider organization, shippers improve their logistics and supply chains through increased operational efficiencies, lower logistics network and organizational costs, improved order-to-cash cycle and improved communication with all supply chain stakeholders.

The graphic below outlines the steps within a managed transportation service solution:

Managed Freight Functions

While many shippers are hesitant to commit to outsourcing non-core competencies, the stats indicate it is an increasingly common practice because of the extensive list of benefits it provides companies.  In fact, 90% of Fortune 500 companies engage with a third-party logistics providers (3PL’s) to help manage their logistics and supply chains.

 

A managed transportation service solution is a fully transparent strategic relationship where the 3PL charges a service fee for their work.  The carrier rates and agreements are negotiation on the shipper's behalf and are a pass-through expense.

Additional articles of interest:

Intek-managed-transportation

To learn more about Intek Freight & Logistics and the logistics industry, we invite you to visit our website and subscribe to our weekly blogs.

InTek Freight & Logistics is an agent ofSunteckTTS

 

About Anna Young

Anna - Marketing & Supply Chain Intern for InTek Freight & Logistics, a company focused on being the place where companies come when faced with a logistics problem.

  • Connect with Anna Young