Why would you outsource your transportation management?

By Marty Smith

 Transportation is a large part of any organizations budget, and as capacity continues to tighten, cost continue to increase. Managing such a critical function is complicated and trusting an outside “Managed Transportation Solutions Provider” is a major decision for many shippers. However, many companies regardless of their size and spend have realized the advantages of selecting the right partner provider to manage the tactical functions of their transportation requirements. The right provider can drive savings and help control cost while providing the right capacity solution, execution technology and business intelligence. Everyone is in need of more staff and resources, and outsourcing can take a huge burden off a shipper.

While many organizations may doubt whether outsourcing will benefit them, experience tells us that shippers who outsource have a lower overall cost and improved process.  

Why would you outsource your transportation management?

  • The right Managed Transportation Provider will implement a capacity solution that reduces cost and provides a high level of service for you and your customers. A good 3PL partner will take the time to understand your needs and develop the right processes and solutions to effectively manage the business. The right partner will have the ability to understand your current network and assist in developing the best capacity solution to meet your needs. This does not mean that a provider will do a wholesale change of all your current carrier providers, but instead the Solution Provider will use a combination of current carriers and their carriers to provide the best solution for you. The 3PL partner will have the ability to be making recommendations on ways to optimize your shipments in the most cost-efficient manner. Integrated systems and technology allow the 3PL to provide complete visibility into loads and freight management. Data that can be turned into business intelligence and provide you with a better understanding of your network and help identify opportunities for improvement is a key to outsourcing.      
  • Selecting the proper 3PL can also allow you access to a strong technology platform. A reputable 3PL is armed with tech tools such as a robust transportation management system (TMS), tracking tools, carrier payment functions, etc. The 3PL will continue to do upgrades and updates to the system saving the shipper considerable money. Again, the right TMS solution will allow the 3PL to provide your business intelligence which helps both parties better manage the business and identify savings opportunities.  

GTI USA has a proven track record of providing outstanding value to its Managed Transportation customers. Let us work with your team to evaluate your network and propose opportunities for improvement and efficiency gains.


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