IntelliTrans, the leader in global multimodal solutions for optimizing supply chain operations for bulk & break-bulk industries, discusses the success factors for a managed transportation services business in today’s volatile market. IntelliTrans Managed Services uses IntelliTrans transportation management system technology to help clients execute their freight, bring visibility to keep track of freight in transit, and manage forward-deployed inventory to allow clients to see how much product their customers have or how much inventory they've got at warehouses out in the network.
“The pandemic has had a significant impact on the managed transportation services industry,” says Ken Sherman, President of IntelliTrans. “With disruptions in supply chain operations, challenges in attracting and retaining talent, and increased pressure on logistics networks, many companies have turned to managed services providers to manage their transportation operations.”
The global managed transportation services market was valued at $3.05 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 11.3% from 2021 to 2028, according to a report by Grand View Research. This growth can be attributed to the increasing demand for efficient and cost-effective transportation solutions, the need for real-time visibility and tracking of shipments, and the rising need to manage disruptions in the industry, such as rising fuel costs, driver shortages, and increasing regulatory compliance requirements.
In today’s market of layoffs with the simultaneous difficulties of hiring and retaining talent, IntelliTrans clients leverage the company’s expertise gained from working with businesses similar to theirs. To be successful in the managed service industry, businesses need to focus on trust, transparency, collaboration, and teamwork. Other best practices in transportation management include:
● Use technology like the IntelliTransTMS to identify supply chain exceptions, such as whether a load will be late or inventory levels are insufficient.
● Ensure trust by doing what you say you will do.
● Own your mistakes and stand by what you do to make them right.
● Be honest.
● Have a business model that ensures your interests are aligned with the interests of your customers. For example, acting with complete transparency so that client can verify that you are acting in their best interests, with a revenue model that moves in parallel with the customer’s volume of business.
● Understand that change can be difficult to execute, and when deploying new solutions you must focus as much on the acceptance of that solution as you do the quality of that solution.
● Ensure employees know the "why," as mentioned in the book, "Start With the Why,” by Simon Sinek. Most people know what their company does and how they do it, but few can tell you why. Connect the why with customers and employees to create brand loyalty and employee engagement.
“When leaders in supply chain and transportation choose to work with you, they put their careers in your hands, so they need complete transparency and teamwork,” adds Sherman. “They need to see everything that is going on in their networks, and they need to trust that you are doing everything you can to make their business successful."