It's obvious that a falling economy, rising diesel prices, and having to fight against overseas manufacturers means disaster for US manufacturers unless they do something different. Management that is smart, understands the importance of doing something different to stay competitive and to keep their company afloat until the economy improves.
This profound statement by one of the greatest minds of the 20th century is worth your attention. Albert Einstein stated that "the definition" of insanity was to repeat the same thing over and again and expect a different outcome. This means that doing business the traditional way will lead to your company being financially disadvantaged in this market. Their success lies in outsourcing their transport management to logistic services.
What is logistics?
Imagine for a moment that you had a team of highly-trained transportation experts at your disposal. Perhaps you're thinking, "I don't have the money for that." However, if your transportation team does not find ways to cut costs that month– then you pay them absolutely nothing.
What does this mean for your transportation management budget? You can't really win if you stop to think about it. The logistical team gets paid a percentage of each invoice that is saved. A 3pl incentive to look after your best interests is a great idea.
