The supply chain is becoming increasingly complex. In addition to the ‘normal’ complexity of daily operations, international flows of goods have been hit hard by the coronavirus lockdowns, the trade war between China and the US, and Brexit. As a result, ever-more shippers are choosing to outsource their transport activities – but some people still have their doubts. Here, for anyone who may be a little hesitant, we provide a reminder of the benefits of Managed Transportation Services.
3PL or 4PL?
Let’s start at the beginning. Before shippers can even think about outsourcing their supply chain, they first need to choose whether to work with a 3PL or 4PL supplier. So what’s the difference? Third-party logistics (3PL) suppliers provide Managed Transportation Services by using their own transport assets, whereas fourth-party logistics (4PL) suppliers – such as IDS – do not operate their own vehicles. This independence allows them to select the right carrier for each shipment, while also taking account of factors such as CO2 emissions, pricing and the financial and administrative aspects.
An overview of all the benefits
Managed Transportation Services offer three main advantages – better insights, more control and a smooth-running supply chain – which together enable you to quickly achieve significant cost savings.
Even so, some shippers can be reluctant to make the switch. But there really is nothing to fear, as this list of concrete benefits shows:
- Guaranteed transport capacity and delivery reliability
- Real-time end-to-end supply chain visibility
- Lower freight costs
- Easier data exchange with chain partners
- Risk spreading
- Improved ROI
- Focus on core processes
- Operational control
- Reports and analysis
- Invoice control
- Freight auditing & payment services
- A futureproof business
Fewer logistics headaches
But perhaps the most important advantage of Managed Transportation Services is that it offers peace of mind. You can relax in the knowledge that logistics experts are focusing on optimizing your supply chain on a daily basis, monitoring the entire process – both operationally and tactically – and continuously implementing improvements. At IDS, we don’t only do this for full truckloads of freight; our experts are also happy to help you with smaller consignments, goods with special requirements, logistics challenges or unpredictable flows.
Would you like to know exactly what we can do for your supply chain? Contact Arno Spoek, Business Development Manager at IDS, to find out.