While data from the 2018 22nd Annual Third-Party (3PL) Logistics Study shows overall 3PL revenues have continued to decline slightly over the past several years, logistics costs are actually increasing – with a higher percentage of shippers’ transportation spend being outsourced with 3PLs, reports Logistics Plus Inc.
So how can 3PLs take advantage of rising demand to actually improve revenue, and beat out LTL competition?
The answer lies in 3PLs expanding their available shipping capacity and options – while improving the efficiency of their operations to boost profitability.
But for many 3PL carriers in today’s market, expanding capacity when there is more freight than trucks is difficult without significant investment. What’s more, operations are limited by slow, manual systems driven by emails, phone calls, and fax machines.
Fortunately, taking advantage of local carriers can provide your business with more varied, cost-effective solutions. And Banyan Technology’s Local Carrier solution puts these regional carriers within your reach.
Why use local carriers?
Instead of buying and maintaining larger fleets, turning to local carriers for expanded shipping, delivery, and return options can give your operation an edge over LTL carrier capabilities – without excessive investment.
Local carriers are already well-suited to provide specialty services such as expedited and same-day shipping, inside-home deliveries, setup and assembly, and take-away packaging. They typically offer better customer service, particularly for home-based deliveries, and can do so at more affordable pricing than LTL competitors.
Beyond meeting specialty needs such as same-day shipping, local carriers also improve your ability to respond to risk. For example, if there’s a missed LTL pickup – you can quickly schedule a local carrier to field the delivery to still meet timeline expectations, without messing up the rest of your route.
These benefits are win-win for you and your customers.
So why aren’t more 3PLs leveraging local carriers?
Those that are doing so on their own can speak to the sizeable investment it takes. The sheer cost of purchasing last-mile carrier operations in tens or even hundreds of different markets negates the benefit.
Access local carrier options easily and affordably
Instead, more and more 3PLs are turning to Banyan Technology’s unique API connectivity platform to connect with more than 1,400 local carriers throughout the United States and Canada.
This technology – which can be integrated with your current system so you don’t have to change your existing operations, or through its own TMS offering – enables you to exchange information with carriers in real time. Resembling a live conversation, this gives you access to a broad network including local carries, with live quoting capabilities for more custom and competitive rates.
Local Carrier enables you to tender and secure freight with local carriers across North America more affordably, faster and more efficiently – ultimately boosting your profitability.
And that’s profitability you don’t have to share. Whether you’re using Banyan’s connectivity technology through our interface or your own reporting system, you form a direct relationship with carriers – establishing an account with them like any customer, while maintaining control over your own data.
Meet shippers’ modern connectivity demands
The benefits of Local Carrier extend beyond the carrier network, as well.
In today’s shipping logistics market, real-time connectivity is crucial to staying ahead of LTL competitors – and to keeping your clients happy. In fact, the 2018 3PL Logistics Study highlights that shippers are increasingly demanding access to systems that offer:
- Real-time visibility into supply chain
- Fast communication and risk response times
- In-depth supply chain metrics
Banyan’s Local Carrier provides this seamlessly in a single system of truth – whether you’re plugging into your own TMS, or leveraging ours.
Want to learn more?
For more information on how your 3PL operation can take advantage of Banyan Technology’s live connectivity solutions to reach local carriers, click here to contact us.
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