Not outsourcing your logistics? 5 things you should know.
3 minute read
If you’re like many small to midsize manufacturers or distributors, you’re wary of outsourcing your logistics services. It makes sense. After all, it’s the way you’ve always done things, and it works. Even though lately, you’ve been noticing that things aren’t working quite as well as they used to. Logistics is taking more and more of your time. Technology is changing transportation daily while new regulations are keeping shippers and carriers on their toes. If you plan to handle your logistics operations in-house there are a few things you need to know as you prepare for a volatile future.
Number 1: Tracking Your Own Freight
You need your freight picked up and delivered on time. This requires diligence on your part if you’re not using a third party logistics provider (3PL) with tracking capabilities. You’ll probably spend an inordinate amount of time calling, texting, and trying to reach your carriers and drivers to make sure your freight is on track and on time. Did you know that 3PLs like AM Transport Services track all freight, so you never have to worry where your cargo is?
Number 2: Unreliable Service and Disgruntled Customers
Service failures and dropped loads ruin your reputation. Your customers are not going to blame the carrier you use, they’re going to blame you. When you partner with a 3PL like AM Transport Services, you receive the full-power of the long-term relationships we’ve built with folks all along the supply chain from carriers and warehouse managers to jobsite managers and consignees. You don’t have time to build these relationships, so when something goes wrong, you’re left scurrying, wondering who to call.
Number 3: Out of Control Freight Budget
The freight market is notoriously volatile, and the slightest disruption can upset your best laid plans and destroy your budget. Things like weather events, new regulations, and the continuing driver shortage can upend your budget in a heartbeat. When you work with a 3PL that’s been in the business for longer than 20 years, you reap the benefits of their longevity and experience working in a fickle market. 3PLs like AM Transport combine their experience with data analytics for predictive rates. We’re always looking for new ways to save you time and money.
Number 4: Excessive Liabilities
If you’re not in logistics, your job description doesn’t include knowledge of government regulations regarding Hours of Service, ELD Compliance, or Drug and Alcohol Clearinghouse rules. However, these regulations you know little about expose you to liabilities and excessive costs. An experienced 3PL stays ahead of the trends and vets and sources carriers to protect you from these unnecessary and budget-busting costs.
Number 5: Outdated Spreadsheets
Logistics technology is changing at a rapid pace, and the availability of technology has never been more within reach. However, most shippers do not have the inclination to invest the time or money necessary to update their logistics operations and this puts you at a distinct disadvantage in a competitive market. When you work with a forward-thinking 3PL, you have access to a transportation management system (TMS) that can put your outdated spreadsheets to bed. At AM Transport Services, our TMS is cloud-based and offers robust reporting and end-to-end visibility based on YOUR requirements.
Here at AM Transport Services, we encourage manufacturers and distributors still handling logistics in-house to consider outsourcing some or all of their logistics functions. When you outsource logistics, you can harness the power of visibility, long-term relationships, predictive analysis, protection from liabilities, and advanced technology. When you have the right logistics partner in place, you have the power to manage the KPIs most important to YOUR organization.
You don’t have to be the Lone Ranger. Schedule a call with the experts at AM Transport Services today. We’d love to explore the ways outsourcing logistics can save you time and money.