Managing Transportation: Enhancing Logistics Operations

Managing Transportation

What is Managing Transportation?

Managed transportation involves outsourcing freight and logistics processes to a specialized third-party logistics provider (3PL) or logistics services provider (LSP). This strategic approach allows companies to leverage the expertise of a managed transportation provider, like TLI, to handle the complex tasks of planning, executing, and managing transportation activities. Our freight optimization services go beyond basic logistics by focusing on carrier relationships, motor carrier tariffs, mode optimization, freight claims management, and transit time performance monitoring.

The key difference between managed transportation and traditional logistics brokerage lies in the scope of services. While a freight broker executes shipments based on specific instructions from a shipper, managed transportation encompasses a broader range of responsibilities. TLI's managed transportation services offer a one-stop solution that includes not only the execution of transportation like a freight brokerage but also the strategic management of supply chain processes, ensuring that each step is optimized for cost and efficiency.

What is Transportation Management?

Transportation management refers to the comprehensive processes involved in the movement of goods along the supply chain. This includes everything from selecting the right supplier to processing invoices. Companies like TLI optimize these processes by leveraging advanced technology and data analytics, such as our ViewPoint TMS. Our system runs historical data through a sophisticated rating engine, providing valuable insights for supply chain forecasting and decision-making.

Transportation management is a critical component of supply chain management, encompassing various activities such as route planning, carrier selection, freight bill audits, and shipment tracking. TLI's transportation management system is designed to reduce freight costs through mode optimization, dynamic routing guides, and shipment consolidation. By holding carriers accountable through freight bill audits and managing transportation RFPs, we ensure that our clients achieve maximum savings.

The Difference Between Managed Transportation and Freight Brokerage

The primary distinction between managed transportation and brokerage lies in the level of transportation service provided. Freight brokers focus on the execution of individual shipments, where a planner at the shipper directs the transportation broker on the mode type, lane, and shipment details. In contrast, managed transportation is a holistic service-driven approach that includes the strategic management of the entire transportation process. TLI's managed transportation services offer more than just freight brokerage execution; we provide comprehensive support that includes everything from carrier selection supply chain data mining, to real-time tracking using Macropoint integrations and motor carrier billing performance monitoring.

Is Managed Transportation the Same as 3PL?

While managed transportation is often associated with 3PL services, there are key differences. A managed transportation solution, like the one offered by TLI, is a customized service designed to meet the specific needs of a business. Transportation management goes beyond the traditional 3PL offerings by integrating advanced technology, such as ViewPoint TMS, with proven business processes and logistical expertise. This allows businesses to benefit from a seamless, end-to-end transportation management solution that enhances overall supply chain performance.

What is Managing Transport Operations?

Managing transportation operations involves overseeing all aspects of the transportation process, including vehicle maintenance, fuel costing, routing, mapping, warehousing, and carrier management. Effective transportation management requires a comprehensive understanding of logistics operations, including communication protocols, Electronic Data Interchange (EDI) implementations, cargo handling, and accounting.

TLI's ViewPoint TMS provides shipping businesses with the tools they need to manage routing operations efficiently, including automated General Ledger (GL) coding and cost center coding, ensuring that all transportation-related costs are accurately tracked and managed.

The Size of the Managed Transportation Market

The managed transportation market is rapidly growing, driven by the increasing demand for efficient logistics operations and cost savings. In 2022, the Transportation Management System (TMS) market was estimated to be worth USD $12.4 billion. With a projected Compound Annual Growth Rate (CAGR) of 14.5% from 2023 to 2032, the transportation market is expected to continue its upward trajectory, fueled by advancements in TMS technology and the increasing IT customization requirements of global supply chains.

What is an Example of a Transportation Management System?

ViewPoint TMS is the prime example of a cutting-edge transportation management system that offers businesses the ability to manage their transportation operations with savings, precision and efficiency. A TMS, or Transportation Management System, is a software solution designed to plan, execute, and optimize the physical movement of goods. It enables businesses to manage freight, track the transit status of shipments in real time, and optimize transportation costs by sorting by least cost provider. ViewPoint TMS, developed by TLI, is a cloud-based solution that integrates with ERP and CRM systems, providing a comprehensive platform for managing all aspects of transportation operations.

Why Choose TLI for Managed Transportation?

Over 450 shippers have already chosen TLI to handle their transportation needs. What are you waiting for? Managing transportation efficiently is crucial for businesses aiming to streamline logistics operations and cut costs. TLI's managed transportation services, driven by our advanced ViewPoint TMS, offer a complete solution that covers every step of the transportation process—from selecting carriers to tracking shipments in real-time. Our blend of expertise and cutting-edge technology ensures that your business not only meets its transportation goals but also improves overall supply chain performance.

At TLI, we understand that every business has unique transportation challenges. That’s why our managed transportation services are designed to be flexible and scalable, allowing us to tailor our solutions to meet your specific needs. Whether you’re looking to optimize routes, reduce shipping costs, or improve delivery times, our team is here to help you succeed. By partnering with TLI, you’re not just improving your logistics operations—you’re positioning your business for long-term success in a competitive market.