Managed Transportation Services vs. Spot Truckload Brokerage

Managed transportation services involve outsourcing the management of a company's transportation operations to a third-party provider like Translogistics (TLI). The provider takes responsibility for coordinating the movement of goods, including selecting carriers, negotiating rates, and tracking shipments. This can be a good solution for shippers with a high volume of shipments, as it allows them to focus on their core business and leave the management of their transportation operations to the provider.  A managed transportation provider often utilizes a Transportation Management Software (TMS) to provide visibility and data to shippers to manage data rather than the tediousness of individual shipments. 

Truckload Brokerage

Transactional truckload brokerage, on the other hand, involves using a broker to connect with carriers on a shipment-by-shipment basis. The broker acts as an intermediary between the shipper and the carrier, helping to find a carrier and negotiate rates for each individual shipment. This can be a good solution for shippers with a lower volume of shipments or shipment lanes that are irregular and not recurring with weekly consistency. TLI has multiple dedicated teams that likewise offers solutions for these truckload transportation routing needs. 

Both managed transportation services and transactional truckload brokerage have their advantages and disadvantages, and they are best suited for different types of shippers. Managed transportation services can be a good solution for shippers with a high volume of shipments, as it allows them to outsource the management of their transportation operations to a third-party provider that has a team of experts dedicated to driving efficiency gains & data driven decision making. Transactional truckload brokerage, on the other hand, can be a good solution for shippers that need to utilize the spot market as the loads may be more project oriented or infrequent. 

In conclusion, managed transportation services and transactional truckload brokerage are two different solutions for truckload and LTL shippers. The solution TLI provides is always unique to the underlying need of the shipper themselves. While both solutions can help businesses connect with carriers to transport their goods, they offer different benefits and are best suited for different types of shippers. It's important for shippers to carefully consider their needs and choose the solution from Translogistics that is best suited for their business. 

Learn more about TLI's managed transportation services and TLI's transactional truckload brokerage. Click below to explore!