Advantage of using a fully managed LSP vs Buying a TMS

Fully Managed LSP vs Buying a TMS 

Let’s revisit why you should invest into a good transportation management system. According to a recent study performed by ARC Advisory Group, just the implementation of a TMS can yield up to 6% savings without even changing carriers or lowering rates. Other savings are centered around the efficiency gains and productivity through open visibility of logistics spend to upper management, control over carrier selection, visibility and management of inbound vendor routing, tracking and tracing in one location instead of multiple carrier accounts, and business intelligence based on scrubbed invoice data. The true value of a good TMS should be felt from within all aspects of the company. 

So investing and implementing a good TMS is good solution, but I have an even better one: Partner with a qualified Logistics Solutions Provider. 

Logistics Solutions Provider

Here are just some of the benefits that can be offered by a qualified Logistics Solutions Provider (LSP) not just a 3PL: 

• Active Tracking 
• Integrated Scheduling or Portal Scheduling 
• Vendor Routing management 
• Imaging of BOL/POD automated and archived 
• Claims Mitigation and Management 
• Carrier Contracted Rates and constant addition of new carriers (not just the cheapest rates but developing quality vendor relationships that are contracted) 
• Full visibility for the whole company to see what is going on and tie costing of freight back to cost of goods sold 

Summary

Implementing a TMS solution is a daunting task with a lot of value add if it’s done right, but so few take advantage of the tools because getting a true realization of benefit is an overwhelming task especially considering the busy schedules of the shipper/ it department/ operations – we need to keep doing business while trying to better our business… bringing in an outside LSP offering transportation management services that can help with supply chain optimization is the best solution.