Hiring the Perfect Logistics Director or Traffic Manager? Think TwicePosted On 27th April 2016
First, make sure you really need one. These days, many COOs, CEOs, and even CFOs are generally happy to hire a 3PL or 4PL – a freight broker with analytics and tech ability – that can do everything a traditional
The Traffic Manager can do this and provide the reports to prove it. Generally, unless you are spending more than $2 million in freight charges per year, your bottom line will be better served by having a 3PL provide the oversight and services you need.
The most efficient 3PLs can give varying degrees of control to your vendors and/or dock managers to select the particular carrier and expediting options that you authorize, and the 3PL itself can supervise and review each of those decisions to be sure they are optimal.
You will spend less on shipping and get more services for those dollars because 3PLs shipment volumes are huge for both Less than Truckload (LTL) and Full Truckload (FTL). You benefit in ways other than cost savings.
The 3PL is continually verifying each carrier’s insurance and reviewing their carrier contracts to be extremely protective of you the customer and your freight.
The 3PL also provides a buffer against the constant up and down of freight prices and fuel surcharges. The 3PL is also a legal buffer against various liabilities of having your freight on the road, and some of them even act as legal shippers and really are an additional liability shield against all kinds of risks.
3PLs are not a magic bullet but generally make much more sense than hiring a Logistics Director.
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