Many businesses are looking for ways to streamline operations and reduce costs. One way to do this is by outsourcing logistics to a third-party provider. This is known as “managed logistics.”
In this blog post, we’ll discuss the benefits of managed logistics and how it can help your business save time and money.
What Is a Managed Logistics Provider and What Do They Do?
A managed logistics provider is a company that handles the shipping and delivery of goods on behalf of its clients. They will often oversee the entire process from start to finish, including but not limited to transportation, warehousing, and even customs clearance.
Managed providers utilise a network of relationships with various service providers to deliver their client’s products promptly and cost-effectively. This contrasts freight brokers, who act as a middleman between the shipper and carrier.
Who Typically Uses Them?
E-commerce businesses often use managed logistics providers that need help fulfilling orders.
Partnering with a managed provider can take much of the stress and guesswork out of the equation if you sell products online and ship them directly to your customers. They can also benefit businesses that sell products through brick-and-mortar stores but still need assistance with transportation and warehousing.
What Is the Difference Between Managed Providers and Freight Brokers?
As we mentioned, freight brokers act as a middleman between the shipper and carrier. They don’t have any skin in the game and typically don’t offer value-added services like warehousing or tracking.
Managed providers, on the other hand, are much more hands-on. They will often handle every aspect of the shipping process from start to finish, offering their clients a proper end-to-end solution.
Reasons to use a Managed Logistics Provider and the Benefits it Offers
There are many reasons why businesses choose to partner with managed logistics providers. The most compelling reason is that it can free up valuable time and resources that can be better spent elsewhere.
If you’re running an e-commerce business, your time is better spent on things like marketing or product development rather than figuring out how to get your products shipped on time and within budget.
Another reason to consider using a managed provider is that they typically have access to discounted rates thanks to their volume discounts with service providers. This can save you quite a bit of money in the long run, especially if you are shipping large quantities of product.
And last but not least, managed providers can also offer value-added services like tracking and customer support that you might not be able to provide on your own.
Tips for Maximising the Partnership
If you decide to partner with a managed logistics provider, you can do a few things to ensure the relationship is fruitful for both parties involved.
- First, choose a reputable company with experience in your industry.
- You should also clearly know which operations you would like them to handle (e.g., transportation only or transportation + warehousing).
- And finally, make sure you have a growth plan to scale your business smoothly and efficiently.
Should you Partner With a Managed Provider? Let’s Discuss the Options
There is no one-size-fits-all answer regarding whether or not you should partner with a managed logistics provider. It depends on your specific business needs.
However, if you need help to keep up with demands or need more time or resources to handle shipping yourself, partnering with a reputable managed provider could be a wise decision for your business.
Conclusion
If you feel overwhelmed by the shipping process or need help fulfilling orders for your e-commerce business, consider partnering with a managed logistics provider. They can take care of everything from transportation to warehousing and offer discounted rates due to their volume discounts with service providers.
Plus, they often provide value-added services like tracking and customer support. So if you’re looking for a hassle-free solution to your shipping needs, reach out to a managed provider today!
