Posts Tagged ‘third party logistics’

Sharing the load – Collaborative Transportation Management

Canada, the second largest country in the world – about 5,000 km from Vancouver to Conception Bay – is one of the most challenging, high-cost countries in which to distribute goods.

Forty-two percent of the population inhabit five urban areas where manufacturing and distribution facilities face common transportation challenges. Meanwhile, disproportionate shares of transportation resources are required to service the balance of the population, scattered over 10 million square kilometers. The situation dictates a high use of less-than-truckload delivery, and all-too-frequently, pick-up and delivery trucks simply aren’t full.

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Software as a Service – Internet based computing, Cost Effective Transportation Management Systemes

Transportation Management Systems (TMS) over the internet allows any company, regardless of size, to obtain the benefits of a good transportation management system.

Not long ago the high cost of Transportation Management Systems meant they were used almost exclusively by large shippers and carriers.  Well, things have certainly changed – especially with the advent of “software as a service” or SaaS as it is commonly called. These days, companies of all sizes can pay a relatively low subscription cost to enjoy the benefits of a powerful TMS which will help them manage their transportation strategies – whether it is by road, rail, air or ocean.

With SaaS, software is not installed on a company-domiciled computer or server, but is accessed through the Internet. Companies log on to a web-based program that is used simultaneously by many other companies. Hundreds or even thousands of users can work with a single program. Users are plugged into an instant network of shippers, carriers, freight brokers, third party logistics providers, suppliers, consignees, and trading partners executing millions of transactions through a single system. The system is very secure, allowing each subscriber’s personnel to be in control of their own transactions and managing logistics relationships through a common network.

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Reduce Your Transport Operations Costs

In the current economic climate many businesses are looking to reduce their costs wherever possible. One of the major areas where this can be done is transport.

It might shock many logistics managers to hear that recent research suggests that as many as 65 per cent of business are paying 15 per cent over the current market rate for their transport provision from third party logistics (3PLs). While there is little businesses can do to reduce this figure in the short-term, this fact suggests that too few users of third party logistics providers undertake meaningful benchmarking to assess the relative cost of transport.

Clearly, operating a comprehensive tender process that is professionally managed and engages the market seriously is at the centre of the process.

» Read more: Reduce Your Transport Operations Costs