Carriers are foundational to high-performing supply chains. When it comes to managing these important partnerships, the stakes are high—both for carriers trying to stand out from their competitors and for supply chain managers tasked with selecting the right ones for the job. These days, it’s not just about which carrier can deliver goods on time and on budget. Shippers need strategic carrier management that prioritizes partners with laudable sustainability goals, compatible technology, supply chain resilience, and strong data sharing practices
Working with a third-party logistics (3PL) provider can streamline end-to-end carrier management—from selections and communication to negotiations and beyond—for a logistics process that forwards a shipper’s most important supply chain objectives: cost savings, efficiency, and customer delight.
Good carrier decisions can make or break a delivery
The shipping process is a complicated one, and it includes a number of important decision points along the way. First, the logistics team must select the right carrier. This decision should be based on factors like transit times, cost-effectiveness, available equipment, and geographic coverage. The carrier’s knowledge of—and ability to comply with—local, regional, and international laws is also an essential consideration, as well as adequate insurance coverage against losses or damage. For busy supply chain managers, that’s a lot of boxes to check.
Advanced analytics help shippers pick out the best partner every time, including KPIs like on-time deliveries and freight claims. Without this robust data set, it can be difficult to determine which carrier fits each shipment’s unique requirements and build trusting, long-term relationships. Technology from a 3PL provider, such as a transportation management system (TMS), provides an easy way to keep eyes on the entire picture by analyzing performance data; automating carrier selections based on lane routing, pricing, or custom criteria; and tracking shipments in real time.
Shippers need strategy and oversight in every aspect of carrier management
The carrier management process involves the entire supply chain, including tendering, scheduling, dispatch and loading, transit, unloading, and billing. In some instances, supply chain managers assign this important task to freight brokers who connect shippers with carriers, typically on a per-shipment basis. Their focus is on sourcing capacity—especially in situations where shippers lack established relationships or need flexibility—using software to match shippers with available carriers.
Freight brokers act as intermediaries between shippers and carriers, providing on-demand solutions for shipping needs. But this option can also present risks due to the existence of bad actors and unreliable brokers, making some shippers reluctant to take the plunge.
Using a carrier management service instead provides a broader, more strategic approach to overseeing relationships, analytics, and contracts. For example, carrier management services from a 3PL provider like those offered by CTSI-Global include access to an established network with reliable carriers and ongoing coordination with contracted carriers to optimize the shipping process in areas like rate negotiations, performance monitoring, and compliance management. For overall optimization, outsourced carrier management utilizes software like CTSI-Global’s Honeybee TMS to integrate carrier data into a centralized system, allowing for strategic analytics, route optimization, and proactive decision-making.
Outsourced carrier management services provide a better way forward
Outsourcing carrier management to a 3PL provider is not just a strategy—it’s a transformative approach that allows businesses to focus on core competencies while optimizing overall supply chain operations, lowering carrier costs, and improving scalability. With decades of freight management experience, CTSI-Global offers a powerful and transparent way to oversee carrier management, offering shippers access to a network of over 20,000 reliable, pre-vetted carriers to streamline the process and accelerate growth.
Contact us to learn how strategic carrier management, including access to our worldwide carrier network, can provide tangible efficiencies and lower rates.
