How to choose a good Transportation Management Provider

Today's market conditions are forcing companies to reshape their decisions on transportation management. We have seen coverage issues, embargos, rates increases, and delays across the board, especially in the LTL and parcel modalities. LTL carriers control the market and often decide what lanes they will cover and the type of freight they will service. The parcel side has seen a big transition as well with UPS dropping many of their mid to smaller tier customers to focus on profitability, Since the parcel market is a duopoly, FedEx has already followed and we are seeing the escalation of surcharges by both. One of the best ways to gain back leverage and control with carriers is by partnering with a transportation management provider. But finding a good one takes doing your due diligence. Here are some suggested questions or areas to look for.

• Flexibility - Does your Transportation Management Provider have the flexibility to prescribe solutions to your organization's specific needs? Examples are: reduction of manual processes to get your product to market faster or service pricing models based on overall volume and not a one size fits all approach.
• Service Offering - Do they clearly demonstrate their hard/soft dollar savings along with technology? Services to look for are: LTL and Parcel Cost Management, Transportation Management System (TMS), Freight Invoice Pay and Audit, and Carrier Performance & Compliance
• Technology - How user friendly is their TMS? Can you easily download important business intelligence with a push of a finger? Can the landing page be laid out for your specific needs?
• Integration - Can they easily integrate with existing ERP, WMS and TMS platforms? Best to look for a Transportation Management Provider who has an inhouse Development Team who can guide your team through the integration process so there is minimal to no disruption to your supply chain.
• Transparency - Do you have access to all of your information so you can make informative sound business decisions? You will find that the best Transportation Management Providers do not hide information as they view their relationships as partnerships. Look to partner with one who arms you with the same business intelligence/models that they are using. You should have access to all the information.
• Customer Service - What are expected response times and are the subject matter experts? It goes without saying that you want a knowledgeable and dependable Transportation Management Provider who is responsive. Especially once the contract is signed as you will be dependent on them. It is also important that you have one dedicated account manager who will be your champion throughout the length of your partnership.
• Control - Do you have a say in which LTL carriers you want in your portfolio and are they top tier carriers? With the right Transportation Provider, the answer should be, "Yes." Will I lose control of my parcel contract? The answer should be, "No."

If your annual spend is $500,000 or greater in both LTL and/or parcel, then it makes sense to consider partnering with a Transportation Management Provider. With the right provider, typical hard dollar savings can range from 10-25 percent. Ask if you are a stakeholder in your LTL agreements. Equally important is having input in which carriers you want in your LTL and parcel portfolio. The answer should be "yes" for both if you are aligned with the right partner. https://freightwisellc.com

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