6 Reasons Why You Need A Transportation Management Firm

Timothy Dooner • September 20, 2018

Supply chains are evolving at a more rapid pace than ever. Land and ocean carrier consolidation, warehouse automation, shifting sourcing structures, and digital supply chain transformation all have a tremendous impact on the current state of the logistics industry. Big box stores have shorter delivery windows, distribution centers are spreading out in some regions while consolidating in others, fulfillment obligations are growing more stringent and time is condensed. Moreover, market conditions like the trucking capacity crisis have shippers struggling to move freight on their own. More than ever shippers need comprehensive solutions for supply chain clarity, visibility, consistency and cost-effectiveness.

Transportation management firms are businesses that are dedicated entirely to your supply chain and logistics. Their goal is to optimize goods flow, reduce carrier costs, improve data capture, upgrade technology, strategize routing, and provide cross industry analytics.

Here are 6 reasons why you need a transportation management firm:

Technology

It's hard to compete in today's freight market without using technology to optimize your shipments and make the most of your data capture. The problem is that solutions such as a transportation management system are prohibitively expensive for all but the largest of shippers. Beyond just cost, they require operational know how and departmental structure to support them (IT, training, etc.) Fortunately, most transportation firms and freight forwarders now offer customers access to their TMS for a fraction of the cost of bringing one in-house. "A transportation management [system] is the highest ROI of any planning system that you're going to put in for a process industry." said Lora Cecere, founder of Supply Chain Insights to Consulting Logistics. "If you're shipping with trucks, you're crazy to not have a good TMS."

FOCUS

A transportation management firm allows the shipper the freedom to delegate the daily functions of their supply chain while they focus on the core of their business. Shippers have a diverse set of needs and goals that can be overextended without proper management and oversight. A transportation management firm's entire business is grounded in supply chain optimization, cost reduction, and process improvement. Aborn & Co founder, Russ Aborn, advises, 'By using a transportation management firm you have someone on your side who can work with your freight carriers, optimize your supply chain, and continuously improve your logistics program while you concentrate on growth and your customers."

Scale & Negotiation

How often are shippers negotiating their own rates and with which carriers? Let's face it, freight is a flux market. With capacity issues on both the trucking and ocean side of the delivery equation it may be likely that whatever rates you locked in 6 months or a year ago are no longer market competitive. Your carriers are negotiating with shippers every day while you only speak to them once or twice a year. It is a competitive advantage to work with an independent intermediary that negotiates with carriers on a daily basis and knows when and why to go with a contract rate vs a spot rate. As your supply chain grows and scales you have more leverage and buying power that you can use to your advantage to lower rates and increase carrier commitments.

Cross Shipper Learning

What separates a good transportation management firm from a bad one is the way in which they learn. Exceptional transportation management firms are always looking for the best way to get from point A-Z and everywhere in between. Beyond market research, that takes a knowledge base derived from dealing with shippers moving product to all points along the supply chain. Your transportation management firm should always be looking for new and creative ways for their clients to ship more effectively.

Freight Payment & Auditing

It isn't long after you start shipping that you'll begin getting invoiced. There are few among us who haven't looked at a bill upside down and backwards trying to figure out where all of these accessorial charges and surcharges are coming from. Are they warranted? Was there even a GRI or was that not put out to market? A transportation management firm like Aborn & Co. not only can negotiate some of these away before they even make it to invoice, but we have the market knowledge to know which ones are warranted and in what circumstances they are. Standardize your billing and audit it against contracted rates and performance. If you want to insure that you're not only paying on-time, but never paying more than you should, than strongly consider a transportation management firm.

Benchmarking

There are few shippers who haven't pondered the same universal question, "Am I receiving my freight in the best possible way, at or below market cost, and on time?" The answer is likely a resounding, "NO!" A transportation management firm can look at all of your options, compare them against current market rates and delivery times to determine the vitality of your supply chain. Test the strength of your supply chain while removing any weak links.

Great benchmarking analytics go beyond that. They look at what class is the freight, what is your average weight per shipment, what percent are minimum charge, are there OS&D problems, who are you shipping to, where (geography), type of delivery, is it to warehouses, strip malls, residences, how is the freight conveyed, how quickly do you pay the carriers, do you or your customers require appointments, these factors and many more go into freight pricing.

Want to learn more about what a transportation management firm can do for your business? Reach out to Aborn & Co. today. Isn't it time you got optimized? Contact us today for a free consultation.

Listen to our latest podcast - Digital Supply Chain Transformation w/ 'The Supply Chain Shaman' Lora Cecere below

< Older Post Newer Post >

Brendan Lawler Joins FreightPlus as Senior Manager, Strategic Planning and Customer Service

October 4, 2022

Innovative managed transportation provider continues to invest in hiring and developing the best talent within the logistics space QUINCY, Mass — FreightPlus, a data-driven managed transportation solutions provider, announced Brendan Lawler has joined as Senior Manager of Strategic Planning and Customer Service. Lawler brings in over seven years of experience leading diverse, cross-functional teams in challenging, chaotic, and ambiguous environments. In his new role, Lawler will own all aspects of planning, optimizing, appointing, tracking and servicing customers’ freight. He looks forward to standardizing the planning and customer service functions within the department and incrementally improving the throughput of the team through process improvement and technology integration. “I am energized by the opportunity to help continue FreightPlus’s growth as a data-driven transportation management solutions provider,” says Lawler. “I’m eager to use my experience in leading teams toward operational excellence to enhance the customized service for our clients. FreightPlus's mission to ‘simplify complex logistics together’ embodies the people-driven culture that I value so deeply. I look forward to joining a company that is team-focused and has a proven track record of transforming ideas into innovative solutions that create sustainable impact.” Lawler previously served as a Captain in the Marine Corps and as Senior Operations Manager within Amazon Transportation Services, where he focused on driving operational excellence and utilizing new technology to drive process improvements. In his tenure, he was responsible for developing and implementing new network-level process improvements for both under-the-roof (UTR) and over-the-road (OTR) operations, as well as spearheading the effort of optimizing the synchronization of warehouse and transportation operations. With revenue and employee count quadrupling over the past five years, FreightPlus was listed no. 184 on the Inc. 5000 list of fastest-growing private companies in America in 2022. Chief Operating Officer Ben Graeff comments, “I am so excited to welcome Brendan to FreightPlus. Brendan brings a deep background in operational excellence from his time in the Marine Corps and Amazon Transportation. He is a quiet leader that leads by example, lives in the day-to-day details, and is the exact right person to help us scale our operation and customer service teams through our continued growth.” About FreightPlus FreightPlus is an industry provider of data-driven transportation management, offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first class customer service with innovative technology and industry best practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit FreightPlus.io for more information. ### Media Contact: Courtney Conyers Marketing & Communications cconyers@freightplus.io

FreightPlus Ranks #184 on the Inc. 5000 List

August 16, 2022

For the 2nd Time, FreightPlus Appears on the Inc. 5000, Ranking No. 184 on the List of Fastest-growing Privately Held Companies in America FreightPlus recognizes a three-year revenue growth rate of 2,846% NEW YORK, August 16, 2022 – Today, Inc. revealed that FreightPlus is No. 184 on its annual Inc. 5000 list, the most prestigious ranking of the fastest-growing private companies in America. The list represents a one-of-a-kind look at the most successful companies within the economy’s most dynamic segment—its independent businesses. Facebook, Chobani, Under Armour, Microsoft, Patagonia, and many other well-known names gained their first national exposure as honorees on the Inc. 5000. “We are honored to be featured on the annual Inc. 5000 list for the second year in a row,” said Stephen Aborn, FreightPlus Chief Executive Officer. “This award and our ranking reflect the continuous dedication from our team to providing our customers with the people, technology and processes to build best-in-class logistics programs. We are thrilled to be recognized as we strive to bring customer-centric and innovative solutions to the world of logistics.” The companies on the 2022 Inc. 5000 have not only been successful, but have also demonstrated resilience amid supply chain woes, labor shortages, and the ongoing impact of Covid-19. Among the top 500, the average median three-year revenue growth rate soared to 2,144 percent. Together, those companies added more than 68,394 jobs over the past three years. Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at www.inc.com/inc5000 . The top 500 companies are featured in the September issue of Inc. magazine, which will be available on August 23. “The accomplishment of building one of the fastest-growing companies in the U.S., in light of recent economic roadblocks, cannot be overstated,” says Scott Omelianuk, editor-in-chief of Inc. “Inc. is thrilled to honor the companies that have established themselves through innovation, hard work, and rising to the challenges of today.” About FreightPlus FreightPlus is an industry provider of data-driven transportation management offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first class customer service with innovative technology and industry practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit https://www.freightplus.io/ for more information. Media Contact: Courtney Conyers cconyers@freightplus.io

FreightPlus Names New Senior Vice President of LTL

July 26, 2022

Innovative managed transportation provider brings on LTL industry leader to continue to support rapid growth QUINCY, Mass — FreightPlus, a data-driven managed transportation solutions provider, has announced the expansion of their company with the hiring of Curtis Garrett, joining as Senior Vice President of LTL. Garrett will focus on improving carrier relationships and interactions through utilizing technology and strategic processes. With revenue and employee count quadrupling over the past five years, FreightPlus was named the second-fastest growing privately held company in Massachusetts by the Boston Business Journal. FreightPlus was also listed as the 783 rd fastest-growing company on the 2021 Inc 5000 list. CEO Stephen Aborn commented, “I am thrilled to have the opportunity to work with Curtis. Expanding our team with his experience is a great step in the right direction for FreightPlus as we continue to look for the most innovative and ambitious thinkers in the logistics space.” Garrett brings fifteen years of LTL experience prior to joining FreightPlus, including eight with ODFL in operations, driving, pricing, yield, and W&I. Since departing from ODFL, he has spent six years on the 3PL, software and consulting side of the industry, recently serving as Vice President of Pricing and then Chief Strategy Officer at Reconex. Garrett is fascinated with technology and is truly a student of the industry. Having overseen hundreds of millions of dollars in revenue on the business profitability side, as well as pricing and carrier relationships and procurement, Garrett is more determined than ever to break down silos and get everyone on the same playing field. “I am beyond excited to join FreightPlus”, said Garrett on his new role. He continued, “from what I have witnessed, this company has all the right parts and pieces – customer obsession, innovation, and grit – to do big things in the freight industry and I could not be more excited to be a part of it.” About FreightPlus FreightPlus is an industry provider of data-driven transportation management offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first-class customer service with innovative technology and industry practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit https://www.freightplus.io/ for more information. Media Contact: Courtney Conyers cconyers@freightplus.io

FreightPlus Named to Boston Business Journal's Fast 50 List

FreightPlus Named to Boston Business Journal's 2022 Fast 50 List

March 28, 2022

FreightPlus has been named to Boston Business Journal's exclusive 2022 Fast 50 list for the first time.

Ben Graeff Appointed as FreightPlus Chief Operating Officer

FreightPlus Expands C-Suite with the Appointment of Ben Graeff as Chief Operating Officer

March 7, 2022

Innovative managed transportation provider continues to invest in executive team to support the company’s rapid growth. QUINCY, Mass — FreightPlus, a data-driven managed transportation solutions provider, announced Ben Graeff has joined as Chief Operating Officer, the first in company history. Graeff will be responsible for the company’s operational, managerial, and product strategy, as well as driving day to day and quarterly results and innovation in FreightPlus’ next stage of scale and growth. With revenue and employee count quadrupling over the past five years, FreightPlus was named to The Inc. 5000 list of fastest-growing private companies in America in 2021. CEO Stephen Aborn commented, “I am thrilled to welcome Ben to FreightPlus. His natural ability to lead and his experience scaling large businesses at the intersection of technology and operations will be invaluable to our growth story. Every person or partner that works with Ben will be better for it.” Graeff brings over 10 years of experience building technology and businesses at Amazon. Prior to joining FreightPlus, he served as Sr. Manager, Product Management and Data Analytics within Amazon Transportation Services. During his tenure, Graeff was responsible for P&L ownership in Amazon’s consumer retail division, developing new software and customer experiences for Amazon Prime, as well as product development and business results in operations and logistics across the globe. “I am excited to join a company whose mission embodies solving complex problems in partnership with its customers,” said Graeff on his new role. He continued, “Like all great organizations , FreightPlus is powered by its people. I’m eager to join this growing team and blend my experience in building and developing organizations with delivering fast-paced results through people, process and technology. FreightPlus’ commitment to driving long-term partnerships, cost savings and strong service for our customers aligns closely to my core values. I look forward to continuing to build the products, processes, programs and technologies to drive FreightPlus’ future growth as a data-driven transportation management service.” About FreightPlus About FreightPlus FreightPlus is an industry provider of data-driven transportation management offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first-class customer service with innovative technology and industry practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit https://www.freightplus.io/ for more information. Media Contact: Courtney Conyers cconyers@freightplus.io