In an increasingly complex world, companies are turning more and more to third-party logistics (3PL) companies to help them manage their shipments. Managed transportation services (MTS) are a growing field of 3PL providers who facilitate freight logistics for companies that must deliver goods to retailers and consumers. They could be the right solution for your business. 

MTS is especially valuable for less-than-truckload (LTL) shipments. Whereas full truckload (FTL) shipments involve one full container where all goods are going to the same location, LTL shipments are more complicated. A single truck can hold shipments from multiple companies, each going to different locations. With so many items and destinations, finding the right truck to deliver your specific goods as quickly and efficiently as possible becomes more complicated, and that’s where MTS providers can step in. 

MTS providers help you navigate the decisions, costs, and logistics of LTL shipping. They often have decades of experience and the ability to predict and adapt to incoming market trends. Outsourcing transportation services to an MTS provider can have tangible benefits for your business. When providers manage your logistics, they can help with sourcing & procurement, freight carrier optimization, planning & execution, and freight audit & pay. Professional logistics service providers can help improve operational efficiencies, lower costs, and make communication between stakeholders more efficient. 

Managed Transportation Sees Significant Growth in a Volatile Moment for Shippers

In recent years, the MTS market has grown significantly. In 2022, the global MTS market was estimated to be worth $11.7 billion. That value is projected to more than double and surpass $28 billion by 2027. 

When we consider the factors, this growth comes as no surprise. The coronavirus pandemic has significantly impacted logistics operations globally and nationally. A morass of issues plagued global supply chains for a full three years, and the current, ongoing impacts — inflation and the threat of recession — continue to impact business decisions. Since these factors affect the cost and complexity of logistics operations, an increasing number of companies are turning to MTS providers to manage intricacies and reduce costs. 

The growth of MTS has also happened in lockstep with increasing consumer demand for expedited shipping. A significant portion of consumers expect expedited and often free shipping, and businesses are struggling to keep up with these expectations. To gain that competitive advantage offered by expedited shipping, MTS providers can often be the easiest, most effective way to implement expedited shipping for your business. 

How Does Managed Transportation Work?

With client expectations of fast, economical shipping, using an MTS provider is the easiest way to deliver goods where and when needed. MTS providers can help simplify the vast field of LTL logistics and make shipping to clients easier. MTS providers offer a range of services that can help you every step of the way. We’ve broken down their offerings into three easy steps. 

1. Procure

Changing trends in customer buying habits are impacting how companies sell and deliver their products. For companies shipping LTL, it’s important to know that you’re selecting the fastest, most economical option to satisfy both your needs and your clients’. It can be challenging to wade through all the carrier options, but that’s where MTS providers come in. 

When you’re ready to ship, one of the most time-consuming tasks is approaching different shippers and requesting quotes for timing and price. If you haven’t worked with specific shippers in the past, it can be difficult to determine exactly how reliable they are or whether their prices are fair. The whole process is manual and exhausting. But it doesn’t have to be that way. 

MTS providers are leveraging a growing suite of technologies to quickly analyze carrier capacity and determine the best fit for each shipment. With the power of these technologies behind them and their general industry know-how, you can be sure that MTS providers are finding the best options far faster than anyone could before. 

2. Plan

The benefits of MTS providers don’t stop at selecting a carrier. Their technologies are becoming increasingly adept at optimizing efficiency, planning loads, and improving route & equipment usage. 

MTS providers can help you optimize the efficiency of your shipments through consolidation and real-time analytics. LTL shipments are, by definition, smaller than a full truckload. This means the truck will stop at multiple destinations before delivering your package, which can increase transit time. However, MTS providers utilize smart technologies to help match your shipments with other shipments going to similar destinations. This reduces transit times and gets your load there faster. 

3. Perform

From traffic delays to missed pick-up appointments, there’s a lot that can go wrong with shipment and delivery. Once your carrier is selected and the load is on its way, MTS providers can help you monitor your shipment’s progress, address any problems, and manage invoicing and claims. With the right MTS provider who gives strong visibility en route, you don’t have to wait and worry about these issues. MTS providers can help you track packages from pick-up all the way to delivery. They can also make invoicing carriers and submitting claims easy if anything goes wrong. 

Even when everything goes perfectly, paying shippers can be time-consuming and costly. Just as MTS providers can help you ensure you’re getting the best bang for your buck, they can also make it easier to pay the various providers you’re using through an integrated payment platform. With an MTS provider, they can invoice and bill all in one place, making it simpler for you to pay different providers and keep all your accounts in one place. 

3 Reasons Shippers Choose Managed Transportation

All the smartest companies are using 3PLs. In 2017, a study found that 90% of Fortune 500 companies utilized third-party logistics services that helped them manage transportation. This was an increase from the 46% of those surveyed in 2001 who said they used 3PLs. 

MTS providers bring companies a whole lot of value. While the specific reasons you choose to use an MTS provider may be unique to your company’s needs, there are several leading reasons to use an MTS provider. Three of the biggest reasons our clients use Entourage Freight Solutions (EFS) are for streamlined capacity, optimized claims management, and access to comprehensive analytics. 

1. Streamlined Capacity On-Demand

As mentioned above, MTS providers offer a significant benefit: the technology to accurately match your shipment with the best route and carrier for the job. Entourage Freight Solutions has a state-of-the-art freight matching system that maximizes profitability and enhances the coordination of deliveries, pickups, and beyond.

EFS also offers other streamlining benefits that stem from relationship building. On the carrier side, EFS builds longstanding relationships with carriers and keeps track of the best providers for different needs. Their efforts in building these relationships and the total volumes that they handle can translate into better rates and service for you. Their knowledge of different carriers can also help you avoid less reputable carriers or those that have frequent problems. 

Enhanced efficiency doesn’t just come from good route and carrier selection. Working with EFS can help improve efficiency at the warehouse. As a single company, you may not be moving enough products from a specific warehouse to command priority, but EFS works with hundreds of companies and has built reputable connections with major warehouses. EFS cultivates these relationships with the warehouses in their network, establishing contacts and goodwill. This cachet can go a long way toward booking timely pickup appointments, fixing problems, and getting quick responses when needed. When you need an immediate pickup or have an issue with a warehouse, EFS can use its longstanding connections with warehouses to address the problem and find solutions quickly. 

2. Optimized Claims Management

Even with the best carriers, a shipment can sometimes go wrong. When that happens, Entourage Freight Solutions can help you wade through the claims process. Instead of worrying about the quality of customer service at the shipper or warehouse where the problem occurred, you only need to be secure in the knowledge that EFS has top-notch customer service. EFS’s customer service representatives will answer the phones 24/7 and intervene immediately when something seems amiss. They’ll also help you file claims and will follow up on each claim to ensure it is resolved. 

Claims management is another place where the strong relationships EFS builds are essential. Existing relationships with carriers and warehouses help EFS know exactly who to speak with and how to negotiate an optimal outcome—no more hours spent waiting on endless hold music! 

3. The Analytics Advantage

Perhaps the most significant benefit of using an MTS provider like Entourage Freight Solutions is accessing the pure power of their analytics capacity. EFS uses state-of-the-art technology to match loads to carriers, optimize routes, and track shipments throughout the journey. All this data, backed by smart, proactive EFS experts, helps you make the most intelligent business decisions using the best insights. 

Managed Transportation Services with Entourage Freight Solutions is the Smart Way to Meet Logistics Goals 

More and more businesses are turning to MTS providers to help them achieve their shipping goals. Entourage Freight Solutions can help companies find the best carriers, access better prices, manage invoicing and claims, and deliver timely shipments. With EFS, be assured that your shipments are taking the smartest routes with the best carriers and that you’ll receive fast, comprehensive help to resolve any issues that arise. Contact Entourage Freight Solutions today to get started with smarter shipping and logistics.