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Signs Your Business May Need a Managed Logistics Provider

Posted by John Joyce on July 15, 2021 - 1:45 PM
Signs your business may need managed logistics illustration

When to seek help from logistics experts

Developing and maintaining an efficient supply chain is critical for long-term success. But even the most well-structured companies can experience logistics issues — especially considering supply chain management is just one part of what business leaders have to focus on. That’s why it’s important to recognize the signs of inefficiency and seek help from a managed solutions provider to ensure everything is running smoothly.

6 signs your supply chain could benefit from managed services  

If you’re experiencing any of the following obstacles, it may be time to work with logistics experts.

Securing capacity is becoming more difficult

Finding capacity always runs the risk of being challenging, but an already tight market, the ongoing driver shortage, lasting effects of the Covid-19 pandemic and other market changes are making it particularly difficult to find available trucks right now. A managed provider can make this easier by leveraging connections with thousands of carriers and using their strong buying power to help secure capacity.  

Your transportation spend is increasing every year

While working with a managed provider doesn’t guarantee you won’t have price increases, it can help you budget appropriately and identify areas to save. Typically, providers get better rates in the market because of their consistent purchasing, which means you could pay less for transportation. And through optimization techniques such as pool distribution and consolidation, they can reduce the number of trucks needed to move your goods, potentially saving you thousands of dollars per year.

Long transit times are causing late deliveries

A managed provider can measure on-time pickup and delivery rates to determine where interruptions are occurring. Then, they can offer solutions that enable your current carriers — or new carriers they suggest — to make pickups as scheduled, get shipments on the road faster and meet deadlines. The more you’re able to fulfill your promises to customers, the better your chances of securing repeat buyers.

Your logistics team has high turnover and/or can’t keep up with daily demands

High turnover means consistently repeating the hiring and training process, which takes time and money and can lead to poor performance. And if your group is small in number, you could be struggling to keep up with demand. Removing some or all logistics responsibilities from your group can improve turnover, reduce overhead costs and give you more time to nurture customer relationships.

Lack of data and reporting is causing inefficiencies

Without a way to accurately track, record and visualize shipment-level information, you could be creating inefficiencies without realizing it. You also have no reliable way to make strategic decisions. Managed providers can help you start capturing your data and turn it into valuable insights. This helps you feel confident you’re using the best carriers at the best rates, implementing the right shipping strategies, and making sound decisions for your customers and company.

You’re struggling to operate a green supply chain

If you’re worried about not complying with your customer’s sustainability requirements, a managed logistics provider can help. They’ll take a holistic view of your transportation network and implement optimization techniques that enable you to reduce your carbon output while still delivering on time.

Improve business with ArcBest managed logistics solutions

ArcBest is an industry-leading logistics provider ready to help you overcome any obstacle. We can support just one area of your supply chain or your entire operation through a variety of services. Our team of experts can conduct an analysis to identify weak spots, and then we’ll work together to improve freight flow, cut costs and provide an optimal experience for you and your customers. Learn more about our managed solutions or contact us today to get started.  

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