Feeling Stretched Too Thin?
Imagine this: you’re juggling customer expectations, tracking late shipments, managing a fleet of carriers, and dealing with ever-changing freight rates—all while trying to grow your business. Sound familiar? If so, you’re not alone. As supply chains grow more complex, many companies are reaching a critical point: do we keep handling transportation in-house, or is it time to bring in outside help?
That’s where managed transportation comes in.
But what exactly does that mean? And more importantly, do you need it? Let’s break it down.
What Is Managed Transportation?
At its core, managed transportation services (MTS) involve outsourcing your logistics operations to a third-party expert—often called a Managed Transportation Provider (MTP). Rather than managing everything internally, you partner with a team that handles things like:
- Carrier procurement and rate negotiation
- Freight auditing and payment
- Real-time shipment tracking
- KPI reporting and analytics
- Route optimization
- Claims management
Think of it as having your own logistics department, but without the overhead.
According to a 2023 report by Armstrong & Associates, the managed transportation market has grown steadily over the past decade and is now a $10 billion+ industry in the U.S. alone. More companies are recognizing the value of logistics as a strategic function—not just a cost center.
How Managed Transportation Works
Every provider does things a little differently, but here’s a basic flow:
- Assessment & Onboarding: Your provider evaluates your current supply chain and identifies improvement areas.
- Tech Integration: They sync with your systems or provide access to their own Transportation Management System (TMS).
- Execution: The provider takes over key logistics functions, often working behind the scenes.
- Optimization & Continuous Improvement: Through data analysis and reporting, the provider helps you continuously refine your network.
Some providers offer full-service models, while others support only specific functions. The best solutions are tailored to your business needs.
Benefits of Managed Transportation
Still wondering why so many companies are turning to MTS? Here are some of the top advantages:
1. Cost Savings
Managed providers have buying power with carriers and can often secure better rates. They also identify inefficiencies, like empty miles or unnecessary accessorial charges.
2. Scalability
Whether you’re shipping 50 loads a month or 5,000, a managed transportation partner can scale with you without adding headcount.
3. Expertise on Tap
You gain access to seasoned logistics pros and tech tools that would be costly to develop in-house.
4. Improved Visibility
Most MTS providers offer real-time tracking, analytics dashboards, and proactive alerts to keep you informed.
5. Focus on Your Core Business
Instead of sweating the small stuff in transportation, you can stay focused on growth, customer service, and innovation.
Signs You Might Need Managed Transportation
So how do you know if it’s the right time to consider outsourcing? Here are a few red flags:
- You’re missing delivery windows or service-level agreements (SLAs)
- You don’t have real-time shipment visibility
- Your freight spend keeps rising, but you’re not sure why
- Your team is overwhelmed managing day-to-day logistics
- You lack access to actionable freight analytics
If any of these sound familiar, managed transportation could be a game-changer.
Common Misconceptions
Let’s clear up a few myths:
- “We’re too small for managed transportation.” Many providers offer flexible plans for mid-sized businesses. It’s not just for Fortune 500s.
- “We’ll lose control.” Actually, most companies gain more control through better visibility and reporting.
- “It’s too expensive.” In many cases, the cost is offset (or exceeded) by savings and operational improvements.
Choosing the Right Provider
Not all MTS providers are created equal. When evaluating options, consider:
- Industry experience
- Technology stack (Do they use a robust TMS?)
- Carrier relationships
- Data transparency and reporting
- Cultural fit and customer support
Ask for case studies or references from businesses similar to yours.
Real-World Example: From Chaos to Clarity
One mid-sized manufacturer in Texas was spending over $5 million annually on freight—with little visibility into where the money was going. After switching to a managed transportation partner, they reduced costs by 12%, improved on-time delivery to 97%, and gained detailed insights into lane performance and carrier reliability.
The difference? Better data. Smarter routing. Real accountability.
Conclusion: Logistics Doesn’t Have to Be a Headache
If managing freight has become a full-time job (and not in a good way), it may be time to rethink your approach. A trusted managed transportation partner can take a huge load off your plate—literally and figuratively.
You don’t have to do it all alone. The right support can help you move faster, smarter, and more profitably.
Thinking about managed transportation? Start by evaluating your current process and identifying gaps. Then explore providers that align with your goals.
FAQ: Managed Transportation Explained
Q1: What industries benefit most from managed transportation? A: Manufacturing, retail, food & beverage, and healthcare all commonly use MTS due to high shipping volumes and service-level expectations.
Q2: Can I use managed transportation for international shipping? A: Yes. Many providers support both domestic and international freight, including customs and compliance management.
Q3: What does a managed transportation contract typically include? A: It varies, but generally covers carrier management, TMS access, reporting, freight audit/payment, and performance KPIs.
Q4: Is managed transportation the same as 3PL? A: Managed transportation is often a service offered by 3PLs, but not all 3PLs offer it. It focuses specifically on transportation strategy and execution.
Q5: How do I get started? A: Begin by assessing your current transportation process, gathering freight data, and reaching out to potential providers for consultations.