Streamlining Your Supply Chain: The Benefits of MTS Providers

In today’s global market, managing transportation can be a complex and time-consuming process. From coordinating shipments to tracking inventory, many tasks need to be handled to ensure that products are delivered on time and within budget.

This is where managed transportation services come into play.

So, this article will explore the benefits of managed transportation services and how they can help streamline your supply chain.

What are Managed Transportation Services?

Managed transportation service (MTS) is a third-party logistics provider (3PL) that specializes in managing and optimizing transportation operations for its clients. MTS providers are responsible for coordinating all transportation-related activities, including carrier selection, rate negotiation, shipment scheduling, and tracking.

MTS providers aim to optimize transportation operations to reduce costs and improve efficiency while ensuring on-time delivery. They use advanced technologies and transportation management systems (TMS) to track shipments, monitor carrier performance, and identify areas for improvement.

Benefits of Managed Transportation Services

1. Cost Savings

One of the primary benefits of using MTS is cost savings. MTS providers have established relationships with carriers and can negotiate better rates for their clients. They also use TMS to identify opportunities for consolidation and optimization, which can lead to significant cost savings over time.

2. Improved Efficiency

MTS providers have the expertise and technology to streamline transportation operations. They use TMS to manage the entire transportation process, from carrier selection to delivery, eliminating manual tracking and communication. This helps to reduce errors and delays, improving efficiency and customer satisfaction.

3. Increased Visibility

MTS providers offer real-time visibility into transportation operations, allowing clients to track shipments and monitor carrier performance. This provides greater control and visibility into the supply chain, which can help to identify issues and prevent disruptions before they occur.

4. Scalability

MTS providers can easily scale transportation operations to meet the changing needs of their clients. They have established relationships with carriers and can quickly adapt to changing market conditions or unexpected surges in demand.

5. Expertise

MTS providers have the expertise and experience to manage complex transportation operations. They stay up-to-date on industry trends and regulations, ensuring that their clients are in compliance and avoiding costly penalties.

How to Choose a Managed Transportation Services Provider

When choosing a managed transportation services provider, there are several factors to consider:

1. Experience. Look for providers with a proven track record of success in managing transportation operations.
2. Technology. Choose a provider with advanced technology and transportation management systems to optimize transportation operations.
3. Carrier network. Choose a provider with a broad network of carriers to ensure flexibility and scalability.
4. Customization. Look for providers who can customize their services to meet your specific needs.
5. Cost. Consider the cost of the services and ensure that the provider can deliver cost savings and efficiency improvements.

What Carriers Will You Find in an MTS Provider’s Fleet?

Managed transportation services (MTS) providers typically work with a broad network of carriers to ensure flexibility and scalability for their clients. This means that MTS providers may work with various carriers to meet their clients’ transportation needs.

Some of the most common types of carriers that you may find in an MTS provider’s fleet include the following:

1. Truckload (TL) Carriers. TL carriers specialize in transporting large freight quantities requiring a full truckload. These carriers are often used for long-haul shipments and may offer specialized equipment, such as refrigerated trailers or flatbeds.
2. Less-than-Truckload (LTL) Carriers. LTL carriers specialize in transporting smaller shipments that do not require a full truckload. These carriers consolidate multiple shipments from different customers into a single truck, which helps to reduce costs and improve efficiency.
3. Intermodal Carriers. Intermodal carriers transport freight using a combination of different transportation modes, such as rail, truck, and ocean. This allows for greater flexibility and cost savings, as intermodal shipments can take advantage of lower rail rates or avoid congestion on the highways.
4. Expedited Carriers. Expedited carriers specialize in time-sensitive shipments that require fast delivery. These carriers may offer expedited shipping options, such as same-day or next-day delivery, and may use specialized equipment, such as air freight or expedited ground transportation.
5. International Carriers. International carriers specialize in transporting freight across international borders and may offer customs brokerage and freight forwarding services. These carriers have expertise in navigating complex international regulations and logistics, which can help ensure that shipments are delivered on time and comply with local laws.

It’s important to note that MTS providers may work with a mix of these carriers, depending on their client’s needs and the nature of the shipments. The key is to work with an MTS provider with a broad network of carriers and the expertise to select the right carriers for each shipment to ensure that your transportation operations are optimized for cost and efficiency.

Conclusion

In conclusion, managed transportation services offer many benefits for businesses looking to streamline their supply chain operations. From cost savings to increased efficiency and visibility, MTS providers can help to optimize transportation operations and improve customer satisfaction.

When choosing a managed transportation services provider, it’s important to consider factors such as experience, technology, carrier network, customization, and cost to ensure that you find the right partner for your business.