5 Reasons to Bundle Transportation and Warehousing with One Provider
Siloed logistics approaches don’t work in today’s cold chain shipping environment. Here’s how to centralize those functions and get back to doing what you do best.
With organizational silos rapidly giving way to more open and collaborative business styles, being able to “flatten out” the logistics function and bundle multiple services with a single provider is becoming more and more important.
“For both small and large transit companies, maintaining multiple locations or expanding into new markets involves lots of variables,” FleetOwner reports. “Exploring costs and service-bundling options could mean greater efficiencies and money saved—and a better chance of success.”
Here’s how cold chain shippers can benefit from bundling:
- Focus on your core competencies. No more running around, trying to oversee and micromanage multiple providers and getting them to “talk” to one another. When it’s all under one roof, your central transportation, warehousing, and logistics provider will handle it all for you and allow you to focus on what you do best: supply customers with refrigerated and frozen goods.
- Use your provider’s infrastructure to save time and money. Delegating multiple company functions—such as warehousing and distributing—to a single service provider can result in significant time and cost savings. “Bundling these services together with one provider serves to reduce the resources required for oversight as well as provides for economies of scale,” FleetOwner notes, “as a transportation and distribution provider can often utilize their infrastructure and purchasing power to reduce distribution and fleet cost.”
- Have a single point of contact. Bundling logistics services with a single provider means you need only make one phone call, send one email, or schedule one meeting to get everything you need. Because this provider will serve as your focal point, you’ll avoid the wasted time, effort, and cost associated with tracking down multiple providers to get your questions answered or problems solved.
- Get consistent results. If you’ve historically used multiple providers for your cold chain transportation and warehousing needs, then you probably understand pains like inconsistent service levels, fluctuating rates, and unpredictable outcomes. By bundling these services with a single provider, you can avoid these uncertainties and focus on getting consistent results from one business partner.
- Create a win-win partnership. When companies skip around from supplier to supplier, they never really get the chance to create true, lasting partnerships with those providers. By putting the time and effort into working with one logistics provider, companies can create win-win collaborations that can help them shepherd their cold chains through even the toughest logistics environments (i.e., the current driver shortage and capacity crunches).
Demand for next-day delivery, the driver shortage, and rising transportation rates are all pushing cold chain distributors to find ways to work smarter, better, and faster in today’s transportation environment. In their quest to manage more volume and deal with more complex customer demands than they’ve ever faced in the past, more shippers are bundling fulfillment, warehousing, and shipping with single providers that can meet all of their current needs while also helping them prepare for the future.
To improve your cold chain shipping efficiency, contact us today to learn how Hanson can help.