What is managed TMS?

Evaluating your transportation management strategy? In addition to exploring TMS software or 3PL outsource solutions, shippers should be aware of a new and compelling service.

3PL outsourcing is a viable option for many shippers, but what do you do if retaining control over carriers is still a core strategy? On the other hand headcount is tight and tactical operation of TMS software may not be the best use of your people's time. You're not alone. See what Boise Incorporated faced: "We had been working for a long time trying to improve our service with our customers and we never could seem to quite get there on our own. And part of the reason for that, I think, was we just didn't have the resources or the systems to be able to manage all those carriers across the country."

It's a common pitfall of a TMS investment. Short-term cost savings are achieved, newer or sustain savings don't occur year-over-year. There is another alternative that fills the gap between 3PL outsourcing and in-sourcing through TMS software— Managed TMS is a blend of TMS software and Managed Services. Retain control of key functions such as carrier negotiations, allocate more staff time to high-value strategic work, and do all this with low capital investment, rapid deployment, and proven sustainable cost savings

A service that picks up with process and expertise where traditional software leaves off.

"What you see today, and I think you will see in C.H. Robinson is a great example of that is kind of hybrid solution, which is a combination of where customers may want to retain you know part of the shipment process themselves, they may want to work with a third party to manage other aspects of that process and then be able to Outsource the technology as well."

What would you tell someone considering Managed TMS?

"I would tell them if they're interested in proving their service to their customers, if they're interested in managing their cost, if they believe that they don't have the resources to do it in-house, or the technology to do it in-house this is a very good way to manage those processes. Eespecially on a transactional basis you're only paying what you use them for and and that's a big plus."

Transportation Management is no longer a two-way street managed to TMS represents a third route—balancing the market gap between TMS software and 3PL outsourcing.

Is it on your Logistics road map?