While the terms “logistics” and “supply chain” are sometimes used interchangeably in the logistics industry, logistics is an element of the overall supply chain. In this article, we will talk more about trucking logistics and its benefits.
Logistics refers to the movement of goods from Point A to Point B, which entails two functions: transportation and warehousing.
The overall supply chain is a network of businesses and organizations working in a sequence of processes, including logistics, to produce and distribute goods.
Take note that as we go through this article, we will talk more about these terms:
Logistics networks, logistics planners, logistics process, logistics strategy, logistics services, logistics service providers, logistics planning, logistics system redesign, logistics initiatives, logistics firms, transportation costs, inventory levels, air freight, shipping company, and shipping cost.
Don't worry as we got you covered. Ready?
Trucking operations can be enhanced significantly through the use of trucking logistics. OTR trucking companies can enhance revenues and operational efficiency through the application of modern logistics systems. The overall benefits of implementing logistics are service efficiency and business profitability.
Nowadays, top transportation services move goods across the country using modern logistics capabilities.
On any given day in the US, 3.5 million truck drivers are making their way across the nation.
Even with changing times and new technology, our society continues to rely on the trucking industry to move goods and supplies. In the wake of the pandemic, with more people ordering and tracking items than ever before, hiring a trucking logistics company is the wise choice for every business.
What does a trucking logistics company do, exactly? What are some key benefits of a trucking logistics company for your transportation needs?
We'll discuss those important questions and more, so keep reading.
1. Improved Cost Efficiency
Let's start with the number one concern for most businesses: saving money.
Consider the costs of managing your own shipping efforts versus partnering with a trucking logistics company.
First of all, you'd need to buy the trucks and arrange for storage and warehousing. If you take out a loan for any of these expenses, you'll pay interest, and the trucks will soon cost more than their market value. Then there are the ongoing costs of fuel, drivers, registration, maintenance, and repairs.
For most businesses, these startup costs aren't feasible without eating into your capital or acquiring huge business loans. Isn't it better to direct your money, time, and energy into running your business?
A trucking logistics company saves you all of these costs while improving your operational efficiency. Startups and small businesses with limited budgets can pay on a per-mile basis rather than per pound.
These reduced shipping costs will benefit your company now and allow you to continue growing in the future.
Speaking of cost efficiency, trucking logistics partnered with a DOT Consortium should also be taken into consideration. Why? For compliance and regulatory purposes. A consortium provides truck drivers of these logistics carriers across America with compliance services for a wide range of DOT/ FMCSA requirements. Can you afford any delays in your shipping due to violations? Of course not.
2. Saves Time
Since time is money, this is another way to save on the things that matter most to your business. The faster and more efficiently you can get your products where they need to go, the more successful your company will be.
Trucking logistics companies are experts in shipping and storing goods. They've streamlined the process to make it as smooth as possible. They understand all the documentation that's required, whether you're shipping across state lines or into Mexico and Canada.
Think about how much time it would take to manage your own fleet and figure out shipping logistics on your own. Outsourcing these needs to a professional frees up your valuable time that you could better spend on your core business. What's more, you can rest easy knowing your products will reach their destination intact and on time.
3. Access to the Latest Technology
As mentioned at the outset, technology related to the shipping industry is growing by leaps and bounds.
Customers expect to be able to track their purchases through every step of the shipping process with real-time updates. At the same time, they expect the companies they order from to be conscious of their carbon footprint.
There are also exciting developments in warehouse automation and even artificial intelligence that are revolutionizing the transportation industry.
Hiring a trucking logistics company means instant access to these latest technologies. The best part is you don't have to do any of the research or the work yourself, as the best companies are already up-to-date on the newest developments.
4. Better Risk Management
You might not give much thought to the risks associated with shipping, but the supply chain is in constant danger of interruption.
Consider just some of the ways something can go wrong during the transportation process. There are changing local or international regulations, as well as the theft of physical items or sensitive data. Of course, there's always the risk of damage to your products too.
You can significantly reduce those risks by using a trucking logistics company. They're licensed, bonded, and insured in case something does go wrong during the transportation process. And because your freight is only handled at the pickup and drop-off points, there's less chance of something going wrong in the first place.
5. Multi-Level Services
Logistics companies operate more than just semi-trucks. Consider some of the options that are available to you:
FTL & LTL shipping, heavy hauling, flatbed trucking, same-day delivery, next-day delivery, intermodal transport, freight management, and warehousing & storage
This range of services means you can form a relationship with one company that will take care of all your shipping needs. Not only will this save you time and money, but you'll enjoy an exceptional level of service and improved customer satisfaction.
6. Ease of Scalability & Expansion
Do you have plans to expand your business into new locales or emerging markets?
You can gain a competitive advantage by partnering with a logistics company that already knows the area and the market. You can leverage their knowledge and experience as your business grows.
Speaking of growth, it's also easy to scale up or down depending on the needs of your business. If you need more (or less) transportation, storage, or labor, all you have to do is pick up the phone. This flexibility is perfect for small startups or businesses with seasonal fluctuations.
The process of trucking logistics can involve several factors, including identifying the optimally efficient routes for the fleet, the optimum types of fuel for the fleet, the best truck that can meet the demands of the service, and the needs of clients.
Need to connect with the top trucking Logistics? Are you a Trucking Logistics Company and looking for a DOT Consortium to partner with? We at Labworks USA can support you. Contact us today.Back to Blogs