If you are involved in the trucking industry you have definitely heard of transportation logistics companies; you may even be able to explain exactly what they do, or at least have a rough idea. However, if you find yourself if the category of individuals who have no idea what transportation logistics is, or if the details are a little fuzzy, this blog is for you!
Nobody wants to find multiple carriers for their shipment; that's where a transportation logistics company comes in.
if a customer has one shipment they need hauled to Indiana and a second to New York, but the customer's preferred carrier doesn't typically run in the Northeast, the preferred carrier will handle the first load to Indiana. The customer would then have to find, background check, and pay another carrier to move the second load to New York.
One logistics company can line up all the carriers necessary to get the freight from point A to point B. If the freight does not work within a chosen trucking company's lanes (usual destinations or freight types), the logistics team works with other carriers to make sure the load gets where it needs to go.
The customer, in turn, only has to make one payment (to the logistics company) and the logistics company takes care of paying the carriers. Having a transportation logistics company partner with your trucking company helps to keep operations efficient for customers and carriers and allows carriers to serve larger customers that would normally be outside their service area.
What happens when all of your drivers are booked, and you don't have any more capacity? Don't worry about it! The logistics team has you covered! They will make sure you can keep up with seasonal bumps or surges by partnering with other carriers to back you up so all of the customer's needs are met. Logistics companies maintain a network of carriers they can call upon to save the day and keep your operations productive and profitable. You could say that the logistics department is where all the magic happens in a trucking company.
By having a logistics team, a trucking company can make sure they keep their customers happy. If you aren't able to handle your customer's requests, they will quickly start shopping for a carrier that will. The customers prefer working with a logistics team because they only have to make one call to cover the load instead of having to call multiple carriers to shop the load around. Plus, they avoid having to research any potential carriers' backgrounds to make sure they are legal, properly insured and reliable as the logistics company does all the legwork for them.
By taking care of their customers and working with other carriers, trucking companies also open up new business opportunities for growth and entry into new lanes. Customers will send more business their way and they will form stronger relationships with other carriers that can turn into successful partnerships.