Unlocking the Power of Managed Transportation: Implementation

Authored by Jim Howard, VP of Sales - Digital Services at TRAFFIX

Managed Transportation plays a crucial role in supply chain management, and partnering with a third-party logistics provider (3PL) can significantly enhance a shipper’s transportation department. The benefits of Managed Transportation are realized by leveraging technology and integrating outsourced strategic resources, which seamlessly become extensions of the client organization. 

Implementing managed transportation in phases allows for a systematic approach to integrating the 3PL’s services into the client’s transportation department. Breaking down the process into manageable stages allows both parties to collaborate effectively, ensuring a smooth transition. This approach empowers businesses to navigate potential challenges, allocate resources efficiently, and maximize the benefits of partnering with a 3PL.

• PHASE 1: Discovery and Design: Charting the Path to Success
  The goal of any reputable 3PL is to become an integral part of the client’s transportation department, providing technology enablement and strategic partnership. To achieve this, we must begin by thoroughly assessing the client’s current processes, systems, and objectives. This includes:

  • ​Mapping the current state of the freight activities and process flows so that the 3PL provider can identify improvement areas and design a future state that aligns with the client’s goals.

    • Includes analyzing aspects such as time-critical deliveries, order optimization, and consolidation opportunities.

  • Gaining a comprehensive understanding of the client’s current systems and operations, then streamlining and enhancing their processes by seamlessly integrating the systems of the client and the 3PL. 

    • Includes outlining the ideal version of the Transportation Management System (TMS)—considering visibility, cost reduction, carrier selection, and consolidation strategies.  

• PHASE 2: Testing and Training: Forging a Seamless Integration 
  This part of the process ensures proper integration and maximizes efficiency across technology and personnel.  

  • Clients receive comprehensive training on how to utilize the TMS effectively. 

  • Rigorous testing is carried out to validate the functionality and compatibility of the integrated systems.

• PHASE 3: Launching: Embarking on a Journey of Optimized Operations 
  Once both parties are satisfied with the capabilities of all systems and processes, it is time to launch! This phase emphasizes the smoothest transition possible as the TMS goes live. Once the partnership between the 3PL and the shipper is fully up and running, the stage is set for reaping the benefits.

• PHASE 4: Driving Efficiency: Enhancing Operations through Continuous Evaluation 
  All systems are now a “go.” However, even the most successful launch may encounter a few hiccups along the way. These challenges can be overcome with continuous improvement, resource allocation, and strategic planning. The goal is to maximize results as the partnership develops.

  • Key Performance Indicators (KPIs) are established to monitor and analyze costs, performance, and service-related issues. 

  • Business intelligence provides insights into historical trends, analyzed to facilitate continuous improvement and adapt to ever-changing market dynamics. 

All this hard work and continual evaluation pave the way for cost reduction and financial optimization, opening doors to success through: 

Implementing a managed transportation solution with a 3PL empowers businesses to streamline operations, optimize freight activities, and achieve significant cost savings. By harnessing advanced technology, strategic planning, and ongoing support, companies can maximize efficiency and gain a competitive edge in their supply chain operations. Shippers can navigate and overcome these implementation challenges by entrusting transportation management to industry experts, allowing for growth and success across the business. Together with a 3PL, businesses can conquer new horizons, secure in the knowledge that their logistics needs are in capable hands. 

Are you looking for a reliable partnership with an established Top 25 North American 3PL? Contact TRAFFIX today to take advantage of 44+ years of expertise.