Logistics
Managed Transportation Services (MTS) can help mid-sized companies save 2–10% on transportation costs while simplifying logistics and improving efficiency. For companies spending $50M–$150M annually on shipping, MTS combines technology, expert support, and carrier networks to address key challenges like rising costs, labor shortages, and regulatory demands.
Quick Example: A mid-sized manufacturer saved $135,000 annually by adopting MTS through better route planning and carrier negotiations.
MTS offers mid-market companies a practical solution to cut costs, improve efficiency, and handle complex logistics without the need for significant internal resources.
Mid-market companies often find themselves in a tricky spot when it comes to transportation. They're too large to benefit from small business solutions but not big enough to wield the negotiating power of large corporations. Recognizing these challenges is the first move toward using managed transportation to address them.
Rising labor costs and workforce shortages are hitting the transportation sector hard. Wages in transportation and warehousing have grown four times faster than pre-pandemic rates. This sharp increase in labor costs, combined with difficulties in hiring and retaining frontline workers, creates bottlenecks that ripple throughout the supply chain.
Fluctuating costs are a major headache for mid-market shippers. For example, retail diesel fuel prices have jumped 33% compared to April 2019, while the National Truckload Index climbed 16%. These swings make budgeting a challenge. Fuel alone can account for 50–60% of total shipping expenses, and with over 63% of mid-market companies frequently shipping less-than-truckload (LTL) products, the financial strain becomes even greater.
Navigating shipping regulations and meeting retailer demands is another tough challenge. Retailers increasingly expect smaller, more frequent deliveries, which can lead to underutilized trailer space, faster wear and tear on transportation assets, and more complex compliance requirements. This complexity takes a toll - over 45% of companies admit to having only "superficial" or "minimal" relationships with their customers, which hampers both efficiency and cost management.
"If we can't save money based on volume, can we do it based on attractiveness? Carriers love 'clean' freight, especially in the LTL environment." – Larry Catanzaro, vice president of transportation for Kane Is Able
Managed Transportation Services (MTS) revolutionize the way mid-market companies handle their transportation needs, delivering measurable improvements in cost efficiency and operational performance. Studies show that MTS can cut transportation expenses by 2–10%, making it an appealing option for businesses looking to streamline their logistics operations.
Transportation costs often account for about 10% of a company’s total expenses. By leveraging strategic optimization, MTS providers help businesses significantly reduce these costs. For example, ABC Chemicals, a mid-sized manufacturer, managed to cut transportation expenses by 18%, saving $135,000 annually. This achievement, realized in March 2024, was driven by better route planning and carrier negotiations.
Beyond cost reduction, digital tools are playing a transformative role in improving operational oversight.
Technology is a cornerstone of MTS. Transportation Management System (TMS) platforms provide mid-market businesses with tools typically reserved for larger enterprises, such as real-time tracking and data-driven insights. According to industry research, 39% of supply chain professionals are actively investing in digital technologies to enhance their data analysis capabilities.
"Today's logistics technology and business processes within the managed transportation space makes outsourcing seamless to the shipper and its customer base, while providing significant value in price, capacity, market knowledge and overall supply chain performance."
– Intekfreight-logistics.com
Some of the standout features of these platforms include:
These tools not only simplify logistics but also enable companies to grow without the need for substantial infrastructure investments.
MTS allows mid-market companies to scale their operations without the burden of heavy upfront costs. The technology efficiently manages increased shipping volumes and seasonal demand fluctuations. This scalability is becoming increasingly vital as the TMS market is projected to grow by 60%.
"MTS removes the guesswork through advanced technology that automates previously manual processes."
– Danette Van Trump, SVP, Operations, Transplace
The platform’s control tower functionality offers full transparency into freight movements, empowering businesses to make data-driven decisions. With this level of visibility, companies can identify opportunities to consolidate shipments and optimize delivery routes - all without adding staff or infrastructure.
When choosing an MTS provider, focus on solutions that are scalable, integrate smoothly with your existing systems, and deliver measurable cost savings.
An effective MTS solution should include:
Once you've identified the right provider, the next step is implementing the system in phases for a streamlined transition.
After selecting your provider, follow these steps to ensure a successful rollout:
Once the system is live, it's crucial to monitor its performance to confirm that it's meeting your cost and efficiency goals. Key metrics to track include:
| Metric Category | Key Performance Indicators |
|---|---|
| Cost Management | Reduction in transportation spend (typically 2–10%) |
| Operational Efficiency | On-time delivery rates, tender acceptance |
| Customer Satisfaction | Customer satisfaction scores, delivery exceptions |
| Technology Utilization | System adoption rates, automated process metrics |
Modern TMS platforms simplify this process by offering automated KPI reporting and daily performance scorecards. Regularly reviewing these metrics allows you to fine-tune your operations and ensure your MTS solution continues to deliver the expected benefits.
MTS brings measurable advantages to mid-market companies by streamlining logistics operations. Research indicates that businesses can cut transportation costs by 2–10%, with savings spanning areas like planning, execution, settlement, and procurement. These efficiencies translate into meaningful reductions across the entire supply chain.
But it’s not just about cost savings. MTS also equips companies with specialized expertise and advanced tools, making supply chains more agile and responsive. This approach strengthens logistics management by building resilience and reducing risks. As Scott Biddle, CEO of Scotlynn, puts it:
"We've achieved over 30% annual growth, and the MTS division will play a key role in sustaining that momentum. This new level of service positions Scotlynn as a leader in managed transportation across North America."
Beyond financial and operational improvements, MTS enhances performance by offering real-time visibility, which sharpens decision-making and minimizes uncertainty. Automating manual processes eliminates inefficiencies, while access to logistics experts ensures consistent, high-quality service.
For mid-market companies seeking steady growth, MTS provides a scalable way to address logistical challenges without increasing overhead. Cloud-based platforms make it easy to expand operations seamlessly, without the need for additional internal resources. Combined with advanced analytics, this adaptability empowers mid-market businesses to stay competitive in a demanding marketplace.
Managed Transportation Services (MTS) provide a practical way for mid-sized companies to address challenges like rising transportation costs and labor shortages. By tapping into their extensive networks and deep market knowledge, MTS providers help businesses secure dependable freight capacity at competitive prices, easing financial pressures.
What sets MTS apart is its use of advanced technology. These providers optimize delivery routes, simplify operations, and improve efficiency, all of which contribute to cutting overall costs. On top of that, outsourcing transportation management lets businesses concentrate on their primary operations while leaving the logistical complexities to seasoned professionals. This not only saves valuable time but also ensures resources are better utilized - especially critical when labor is in short supply.
To seamlessly integrate with your current systems, there are a few essential factors to keep in mind when picking a managed transportation services (MTS) provider. Begin by pinpointing your specific business needs and ensuring the provider’s solutions align with your objectives. Take a close look at their technology - check if it works well with your existing systems and offers advanced tools for freight tracking and optimization.
You’ll also want to evaluate their reliability, security measures, and compliance standards to protect your operations. Strong customer support and well-defined service-level agreements (SLAs) are critical for ensuring consistent performance. Lastly, review their track record, reputation, and ability to grow alongside your business. A provider with these qualities can simplify your logistics and improve the efficiency of your supply chain.
Managed Transportation Services (MTS) platforms are designed to simplify logistics operations by using advanced technology. For mid-market companies, this means saving both time and money. These platforms take over manual tasks like shipment tracking, sourcing capacity, and compiling performance reports, making supply chains run more smoothly.
Some standout features include real-time shipment tracking, algorithm-driven capacity sourcing, and automated KPI reporting tools. These tools don't just help businesses make better decisions - they also make it easier to secure competitive shipping rates while keeping service levels high. By adopting MTS platforms, mid-market companies gain the flexibility and insights they need to stay competitive in a fast-paced market.
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