Turn Logistics into Revenue: Creating a Profit Center with Managed Transportation
For many manufacturers, logistics often feels like an unavoidable cost—one of those necessary expenses that keeps your business running but rarely adds value to the bottom line, regardless of how you approach it. On one hand, managing transportation for inbound materials and outbound freight is often complicated, time-consuming, and expensive. On the flip side, when customers and suppliers arrange their own transportation, you risk losing visibility and control over scheduling, costs, and delivery outcomes.
But what if logistics could be more than just a cost center? What if it could actually help you generate revenue instead? Managed transportation providers help businesses to do exactly that.
In this blog, we’ll explore how small and medium-sized businesses can turn logistics operations into a profit center without adding headcount or overhead. We’ll look at common challenges in transportation management, how managed transportation solves these issues, and the benefits of partnering with the right provider.
When Logistics Goes Off the Rails: Common Challenges Manufacturers Face
Transportation and logistics have become increasingly complex in recent years. Managing both inbound and outbound freight requires substantial planning and coordination, but relinquishing control to customers and suppliers poses a host of other challenges.
One of the biggest issues is a lack of control. When your customers arrange their own transportation, you have little to no say over scheduling, which can put pressure on fulfillment timelines and ultimately strain customer relationships. Similarly, leaving suppliers to handle inbound freight can leave you vulnerable to inconsistent deliveries, poor visibility into inbound inventory, and potential production delays.
Cost control is another major challenge. Without visibility into freight costs, you risk overpaying for services or miss opportunities to optimize routes and reduce transportation spend. These inefficiencies may unknowingly chip away at profits.
A general lack of accountability is yet another challenge. Without centralized systems and processes, it’s tough to track deliveries, address delays, or hold anyone (suppliers or transportation providers) responsible for poor performance. This disconnect leaves you stuck dealing with inefficiencies that slow down operations and hurt profitability.
Why Managing Logistics In-House Is Harder Than It Looks
Taking back control of transportation sounds great in theory, but it’s not as simple as flipping a switch. Building the infrastructure, systems, and expertise to manage logistics in-house can be overwhelming, especially if you have limited financial and human resources to invest in the process. Many businesses underestimate just how difficult it is to make this transition, and even well-intentioned efforts can fall short without adequate planning for these common hurdles.
The True Costs of Transportation Systems
Implementing a transportation management system (TMS) is essential for managing freight, optimizing routes, and gaining visibility over logistics activity. But these systems usually don’t come cheap. Between the upfront investment, ongoing maintenance fees, and additional costs for integrations or customizations, the price tag can quickly exceed expectations. On top of that, the potential learning curve that comes with adopting a TMS may delay efficiency gains, making it even harder to realize a quick return on investment.
Building and Retaining the Right Team
A successful logistics operation needs skilled and experienced professionals who can manage carrier relationships, resolve delivery issues, and maintain tech systems. But hiring and retaining this talent is a constant battle. Experienced logistics managers are in high demand, and attracting top candidates usually requires competitive salaries and comprehensive benefits. Once hired, effective training and onboarding are critical, but that also demands time and resources many businesses don’t have readily available.
Gaining Buy-In for Organizational Change
Centralizing logistics means disrupting existing processes, which can lead to resistance from employees and even external partners. Teams accustomed to the “old way” may resist new tools or workflows, especially if they see them as overly complicated or unnecessary. Without clear communication and support during the transition, pushback can stall progress and leave you struggling to implement the very systems you need to succeed.
The reality is that building and maintaining an internal logistics team demands resources and effort that many companies aren’t ready to take on. Outsourcing to a transportation management company can help alleviate these pressures while giving you all the benefits of bringing logistics in-house.
What Managed Transportation Providers Do
Managed transportation providers take the burden of logistics management off your plate, running your transportation operations independently while giving you as much (or as little) oversight as you’d like. Their role goes far beyond simply moving freight—they handle the day-to-day operations that keep your supply chain running smoothly. Here’s what they typically manage:
Rating and Booking Carriers: They negotiate rates, manage contracts, and handle spot freight as needed, ensuring you get the best combination of cost and service for every shipment.
Managing Modes: They compare, select, and source the correct transportation “mode” and equipment based on the requirements of a specific shipment (transit time, cost, size, etc.).
Sourcing New Carriers: Managed transportation providers find, vet, and onboard quality carriers to ensure you have access to cost-effective capacity and keep your costs under control.
Managing Appointments and Tracking in Transit: From scheduling pickup and delivery appointments to monitoring shipments in real time, they ensure everything stays on schedule.
Resolving Issues: Whether it’s managing damage claims, addressing delays, or troubleshooting delivery problems, they step in to resolve issues quickly and effectively.
Auditing and Paying Freight Invoices: They review and validate freight bills for accuracy, eliminating billing errors and ensuring timely payments to carriers.
Reporting and Analysis: Detailed reporting provides you with insights into costs, carrier performance, and logistics efficiency, helping you make informed decisions to improve your operations.
By taking on these responsibilities, transportation management companies allow you to focus on what you do best while keeping your logistics running like clockwork. Whether you need full-service management or targeted support, they adapt their services to fit your business.
From Chaos to Control: How Managed Transportation Benefits Your Business
The benefits of managed transportation go beyond simplifying logistics. By outsourcing these functions, you can transform complex freight operations into a strategic asset. Here’s how:
Reduced Costs: Managed transportation providers help reduce waste by improving mode selection, consolidating shipments, and leveraging large carrier networks to secure competitive rates and high-caliber service.
Better Visibility: With access to advanced tracking and reporting tools, you gain valuable insights into logistics performance for better, smarter decision-making.
Happy Customers: Of course, reliable, on-time deliveries lead to happier customers and stronger long-term relationships. Managed transportation providers ensure that issues are addressed early and shipments arrive as planned.
Revenue Growth: Turning logistics into a value-added service gives you the ability to create a new profit center. By arranging transportation and delivery for your customers, you can control costs and generate additional revenue.
Scalability: Managed transportation providers can quickly adapt to changing demands, whether that means scaling up during peak seasons or streamlining operations during slower periods.
Expertise: Tap into industry veterans for their strategy and expertise so you can focus on your core strengths.
With the right managed transportation service, you can stop viewing logistics as a drain on resources and start leveraging it as a powerful driver of growth. You can make freight a useful extension of your business—streamlined, adaptable, and built to support both your bottom line and your customers' needs.
What to Look for in a Managed Transportation Partner
A managed transportation provider should act as a strategic partner. Look for one with deep experience in both inbound and outbound freight, especially within your industry. A provider with proven expertise can anticipate challenges and deliver targeted solutions.
Technology is also key. Advanced tools for tracking, reporting, and analytics give you the transparency and control you need to improve your supply chain. Finally, flexibility matters. A great provider will tailor their services to your specific needs, scaling to meet your demands while staying aligned with your goals.
Done-for-You Freight: Managed Transportation with TFWW Manchester
When you’re ready to take control of your logistics without the complexity of managing it in-house, TFWW Manchester is the partner you can trust. With our Done-for-You Freight Service, we do more than manage transportation—we turn logistics into profits. From inbound materials to outbound deliveries, our solutions are designed to take the burden off your shoulders while unlocking new opportunities for your small or medium-sized business to grow.
Here’s what sets TFWW Manchester apart:
An Extensive Carrier Network That Delivers: TFWW Manchester works with a carefully vetted network of carriers to handle LTL, FTL, temp-controlled, expedited cargo vans, and everything in between.
Technology That Keeps You in Control: With real-time tracking, predictive analytics, and advanced reporting tools, you’ll always know exactly where your shipments are and how they’re performing.
Solutions Built Around You: Every business is different, and TFWW Manchester designs our services to meet your specific needs. Whether you’re looking for full-service logistics management or targeted support for key functions, our team creates custom strategies that drive results.
A Partner for Every Season and Scale: From peak season shipping rushes to quieter operational periods, TFWW Manchester scales service to match your business needs.
Our passion is to help businesses turn logistics into a competitive advantage instead of a burden. Leverage our team’s expertise, technology, and commitment to personalized service to make transportation a revenue-generating asset for your business.
Wanna learn more? Contact TFWW Manchester to see how our Done-for-You Freight Service can help you achieve your goals.