Finding Profit in the Last Mile

Logistics managers work tirelessly to find efficient ways to move their companies’ products to market. Negotiating smart terms for international freight, cross-country trucking and warehousing ensures that those goods get through the supply chain with the lowest possible cost. All that remains is to move the products down the last mile and into the hands of the end customer. While that seems simple, it’s often this last link in the chain where profits are lost.

Only One Way to Go

Consolidators like UPS and FedEx offer a range of services, but look closely and you’ll see what they don’t offer. Shippers have to be agile and adaptable to changing conditions, so they need a last-mile logistics option that maximizes flexibility. Too often, consolidators force their customers to adapt to their logistics model. They offer one option and one price—take it or leave it.

That’s where independent carriers come into play. Couriers and LTL truckers have the capacity and flexibility to deliver when and where shippers need it. Traditionally, these carriers didn’t offer the range of services or the shipment visibility that major shippers require. In the last few years, that situation has changed dramatically and companies in pharmaceutical, retail, bio-sciences, high-tech and a variety of industries are realizing how independent carriers can meet their needs while reducing shipping cost.

Managing the Process

Keeping up with hundreds or thousands of individual shipments consigned to dozens of carriers would be an impossible task without the right tools. Carriers who want to handle this type of work have already invested in their operations systems. They can supply all the shipment details from pickup to delivery, but the volume of data would be overwhelming.

Fortunately, advanced technology now provides shippers with the business intelligence tools they need to effectively manage the last-mile transportation process. Web-based platforms unite large numbers of carriers and have the capability to consolidate shipping data into a manageable form. The most advanced technology will even provide a dashboard capability that graphically depicts the overall progress of your shipments while allowing you to quickly drill down to an individual shipment should the need arise.

Better Service and Higher Profits

Independent carriers are able to offer more flexibility in their service and the competitive nature of their industry ensures that shippers will get the best value for their logistics spend. Rather than be bound by the rigid practices of huge consolidators, smart shippers are utilizing a ready resource for faster shipment at a lower cost. Building a customized network of independent carriers ensures that they will deliver not only their company’s products, but improved profits, too. The business intelligence they need to efficiently manage this emerging transportation option is readily available and as close as the nearest web browser.

It's All About Who You Know

It’s been said that it isn’t what you know, but who you know that counts. Being part of a network broadens the market reach of any carrier company and makes its service more valuable to shippers.

Entrepreneurs are an independent breed by nature and tend to avoid being grouped together. However, savvy business people know that networking can create a lot of synergy to help them grow their company. Many of them probably participate in personal networking groups and various forms of social media to build their businesses, but they may be overlooking the benefits of leveraging their operations technology to gain access to an already powerful network.

More Than Just Technology

Unless a carrier runs on custom made courier software and has no need to connect with partners and customers, they are already part of a network that brings together all the users of that product or service. The combined power of all those users on a single platform can be a force for growth. The question becomes how to leverage that power and turn it into a value proposition for the end customer.

Shippers are often forced to deal with a variety of data feeds and types. They must utilize a diverse group of couriers and truckers to help them move their goods to market in a cost-effective manner. Unfortunately, this also means they have to go to great lengths to consolidate performance data and manage their carriers.

The Power of the Network

The power of any network is the strength of its common connections. If a courier company fully utilizes the communication capability of their courier software to manage EDI exchanges with shippers, they are accessing the technical power of the network. Their shipper customers recognize the advantage in dealing with a service provider who can provide a consistent, unified and reliable flow of data.

But when those owners wisely select courier software that provides a common platform for a broad group of carriers, they can leverage that physical network to drive connections to new shippers and new streams of revenue. Their customers prefer to work with proven technology and the carrier who possesses the right tools will find that they enjoy a certain preference from new or prospective shippers.

As with most things in business, technology is about who you know. Explore the many courier software options carefully and make sure the one you select will deliver all the networking power a growing company needs.