Archive for Managed Transportation

The Managed Transportation Services Outlook

I recently wrapped up my Managed Transportation Services market study which looks at the total size of the market, the forecasted growth through 2023, and the leading suppliers across a number of categories including industry, region, and customer size. In an MTS arrangement, a shipper contracts with a third party to plan and execute their moves for them.  In other words, instead of having internal planners plan and execute moves, those planners are employed by […]

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Managed Transportation Growth Drivers

A while back, I wrote about the managed transportation services (MTS) market. According to ARC’s definition, in an MTS arrangement, a shipper contracts with a third party to plan and execute their moves for them. In other words, instead of having internal planners plan and execute moves, those planners are employed by the MTS supplier, but work on the shipper’s behalf. The market study I am wrapping up is restricted to revenues generated from control […]

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AGCO Drives an 18 Percent Reduction in Freight Costs while Maintaining Service Levels!

AGCO is acclaimed for their approach to supply chain management. Part of their supply chain transformation led to a reduction in freight costs an unheard of 18% while maintaining service levels!

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High Touch, Blended Transportation Management Solutions Can Reduce Freight Costs

Blended solutions are emerging – part transportation management system, part managed services. This case study explore the benefits one shipper got from this solution.

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Leveraging Network Effects to Improve Managed Transportation

Jeff McDermott, the Sr. Vice President of Transportation at GEODIS, made the point in a conversation with me that there have been several new entrants providing managed transportation services. “Cloud-based transportation management systems (TMS) have lowered the barriers of entry in this field. But small players don’t have the economies of scale.” By economies of scale, Mr. McDermott is referring to network effects; being able to leverage visibility to large numbers of transportation moves and […]

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What’s New in Managed Transportation?

Europeans and North Americans talk about this managed transportation in different ways. In Europe, they often refer to this as a 4PL (fourth party logistics) service. When Europeans talk about a 4PL arrangement, what they are referring to tends to be more tightly defined and less flexible than what North Americans mean by “managed transportation.”

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3PL Acquisitions Make Selecting a Managed Transportation Partner Risky

There have been a number of acquisitions involving 3PLs that offer managed transportation services (MTS) solutions over the last year. Cumulatively, these acquisitions involve companies that have over 40 percent of the total MTS market.

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A Transportation Management System or Managed Transportation Services? Why Not Both?

Last year the ARC Advisory Group did a study on the ROI a shipper would get by having their transportation managed by a third party logistics firm. In a managed transportation services (MTS) arrangement, a shipper contracts with a third party to plan and execute the shipper’s moves. Survey results indicate that MTS relationships are generally successful from both freight savings and service level perspectives. We’ve done similar research on transportation systems (TMSs). The savings […]

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When Freight Brokers Provide Managed Transportation Services, is there a Conflict of Interest?

ARC is kicking off a study on managed transportation services (MTS). One of the key questions we have is how is the value proposition of the logistics service provider (LSP) affected by their business model? For example, some LSPs are freight brokers. Would LSPs that provide both MTS and brokerage provide a better or worse ROI than other types of LSPs? I asked these questions of three managed transportation services providers. First, a bit of […]

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