What Is Managed Transportation?

It’s easy to say that outsourcing your logistics operations to a third party can streamline or optimize your supply chain, but how do 4PL providers actually do that? Below, you’ll find four critical steps of the shipping process and see how managed transportation providers use their expertise to simplify supply chain management.

• Procurement – 4PL providers help you find the right carrier for your shipping needs. They assess carrier compliance, accessibility, and capacity requirements to connect you with reliable carriers that get the job done right. 4PL providers perform the RFP and bid response process for you, helping you find the most cost-effective shipping partner for your loads.
• Rate – After procuring bids for your shipments, your 4PL provider assesses carrier rates and determines which is best for your shipping needs. Your 4PL provider ensures you get the best rates on every shipment, lowering overall transportation costs.
• Plan and execute – Next, your 4PL provider plans and executes your shipment. They determine which shipping mode is most effective for your shipment, whether that be dry van, refrigerated, or intermodal. Your 4PL also establishes the most optimal shipping route for your load, avoiding costly routes, dangerous weather patterns, and other potential disruptions to the shipping process. After planning, your 4PL provider manages the execution of your shipment, ensuring your carrier is on track to deliver your shipment on time. They also address any issues relating to shipping overages, shortages, or damages.
• Settle – After your shipment arrives at its intended destination, your managed transportation provider assists you in settling the bill for the shipment, as well as managing fuel surcharges and other freight costs. In addition, your 4PL provider can manage freight claims and provide in-depth analytics to optimize shipments down the line.