Managed-Transportation_1.png

What are

Managed Transportation Services?

Many shippers think they must select either a transportation management system or a managed transportation services provider when in fact, they get the most bang for their buck when they utilize both from the same company. When the shipper takes advantage of both a TMS and managed transportation services, they are in command. The TMS gives them visibility into their supply chain, and the transportation services provider is responsible for accounting, claims, carrier performance, and continuous improvement. You have the information and the ability to focus on what you do best, while the service provider focuses on what they do best. This strategy has proven to result in the most opitmal ROI and increased customer service levels.

Vendor and Carrier

Compliance


Carrier Compliance Data


Vendor Compliance Data

Data collected on carrier compliance gives companies leverage when negotiating better freight rates. Similarly, when vendor compliance data is tracked costs incurred from non-compliant shipments can be tracked and identified.

Strengthening vendor compliance encourages vendors to increase their customer service, which is directly passed on to you, the client, and your customers. Implementing lean or JIT philosophies is a priority for most shippers. These philosophies are often not performing at their fullest capacity as many companies must keep excess inventory to reduce risk.

On-Time Deliveries

Late Deliveries

Damages

Lost Product
Redirects/Returns

Ship Timliness

Ship Accuracy

Units Defective/Rejected

Order Management

Most companies understand the significance of order management, however, they don’t always understand the numerous ways in which 3PLs and their technology can improve these processes within the supply chain. McClain’s TMS is able to integrate with all ERP systems so when a customer creates an order,  a carbon copy of that order is sent into the TMS. At this time, all line item information is now visible and ready for analysis with shipment data.



Inbound Collect

PO Management

As your 3PL provider, our goal is to use this stored information to build the largest, most cost effective shipment by identifying potential opportunities to combine your POs to reduce the number of shipments, subsequently decreasing unit cost. Throughout the life cycle of the order, McClain is proactively monitoring the shipment, making sure it is both ready to ship on time, and once picked up, delivers on time.

Arming McClain with this data alleviates the client from the guessing game and pressure to follow up. When these procedures and integrations are in place, McClain can ensure down to each individual line item, that the order is complete and shipped in the most cost and time efficient manner. If an order is not going to make delivery, or is short shipped, we will work with both shipper and vendor to appease the issue. As the shipper reports progress to the McClain, these updates will be manifested with all other relevant shipment and order information. At this time, clients can log into their portal and see instant updates on their shipment.


Outbound Prepaid

SO/CO Management

Through an integration to your ERP system, we are able to receive an electronic transmission of your SO or CO data. Not only does this store all of your SO/CO information in a centralized location in conjunction with all shipment data, but it reduces time and errors made from manual entry of shipment data.  When these processes are in place, your shipping manager is able to search the SO/CO when creating a shipment, decreasing the time spent manually creating the shipment. This integration provides McClain and our clients with visibility of all pending orders.  

Freight Pay and Audit

Rather than receiving individual invoices from multiple carriers, McClain takes responsibility for all invoices. When an invoice is received, the billed amount is electronically compared to the quoted amount in our system. If these amounts are the same, the invoice gets approved and the client is billed based on their individual invoicing agreements with McClain. If the billed amount varies from the quoted amount due to a possible assessorial, reclassification, or reweigh, a case is created and the CSR is responsible for resolving these discrepancies prior to the client receiving the invoice. All accessorials, re-weighs, and reclasses, are meticulously tracked for client accounting purposes and yearly negotiations with carriers.


Business Intelligence

Salesforce’s native features provide exceptional analytic building tools. When shipment and order information is centralized, not only is time saved, but errors caused by manual entry are avoided. This allows clients to accurately manage and analyze transportation costs and execution performance data. These features provide greater flexibility in modifying standard reports or creating entirely new ones, with the ability to export to excel or email directly from the system on a scheduled or on demand basis.

As the saying goes, knowledge is power. This “big data” gives companies power, and control. What the above metrics, as well as many more, give executives and logistics managers is the knowledge, control, and ability to streamline processes and save both time and money. This information can provide personnel at all levels an instant snapshot of their KPIs, while highlighting those that need immediate attention.

Compiling PO and freight information into a centralized location allows current and historical data to be analyzed. From this analysis, exceptions are identified and procedures are implemented to mitigate potential risks from recurrence. Using exception management dashboards and alerts to identify these potential risks focuses time on those shipments in jeopardy or in need of immediate attention.


Business Intelligence Metrics

Total Freight Spend

Average Cost Per Mile, Pound, Unit, Etc.

Average Carrier, Vendor, Client, Shipment Cost
Outbound Freight as a Percent of Net Sales

Inbound Freight as a Percentage of Purchases

Accuracy of Transit Times
Vendor and Carrier Compliance

Claims as a Percent of Freight Cost

Employee Key Performance Data

http://mcclainltd.com/wp-content/uploads/2016/06/mcclain-ltd-logistics-freight-intermodal-supply-chain-management-st-louis.png

Through PO/ERP Integration we were able to reduce short ships from our vendors and build bigger shipments to optimize lanes. We minimized inbound shipments and can now hold our vendors accountable.
– Safety Products Manufacturer

SUPPLY CHAIN SERVICES

At McClain, we have a hands on and conversational approach to our supply chain consulting services. Each client is different, and as such, their supply chain needs are different. We will perform an analysis of your past freight invoices to uncover areas for savings and initiate route optimization and load planning. McClain & Associates utilizes our industry expertise and years of experiences, as well as our knowledge of our clients industries to remedy current supply chain challenges, and prepare for and mitigate future issues.  We understand that both uncovering cost efficiencies and maintaining positive customer service are priorities. At McClain, are committed to properly addressing both concerns.

Whether your company is in need of a complete supply chain overhaul, or you merely have a few questions you’d like answered by industry professionals, we can help. We collaborate with your employees at all levels to provide a fresh set of eyes and  implement procedures and technology that improve customer satisfaction, decrease costs, and optimize your overall supply chain.


Best-Logistics-Company-1200x911.png

5 Things You Need to Know About

McClain Logistics

We are

Committed

  • We are committed to being a trusted partner, advisor, advocate, and consultant to your company. When you grow, we grow.
  • We are committed to finding efficiencies in your supply chain and to reducing risk, with the intention of saving you money, time and stress.
  • We are committed to providing you with revolutionary logistics technology, customized to your business, your needs, and your employees.

  • We are committed to following through with all shipments and ensuring a problem free process for all our customers
  • We are committed to maintaining the original rates that you are given, and do not engage in “bait and switch” techniques.
  • We are committed to providing you with the information you need to know before you need to know it.

We are

Family Owned

Mike McClain’s original footprint in the transportation industry can be found in owning and managing multiple warehousing facilities throughout St. Louis beginning in 1995 before transitioning to become St. Louis’ premiere logistics company. We live and breath for our company, our customers, and our employees, which is why the majority of our clients and employees have never left (and oftentimes even come to our family functions!).

Being family owned, trust, authenticity, and next-gen ingenuity are ingrained within our culture.

We are

Financially Stable

Amid dynamic economic times, McClain has not only survived, but thrive. Being both non-asset based and technology driven enables us to excel in an ever-changing business environment. As a 3PL, McClain has not only grown at consistent double-digit pace annually since our conception in 1995 but has remained a viable competitor in a volatile marketplace. Our financial sustainability and many years of combined employee experience has allowed McClain not only to gain the respect of the industry, but has also given us the opportunity to partner with best in class carriers to foster lasting relationships that in turn, benefit our client’s bottom line.

We are

Contract Free

Many logistics companies enforce strict contracts upon their clients, obligating them to utilize only their services, regardless of cost increases or unreliable service for the duration of the contract. This forces commitment from you, the client, but it doesn’t elicit commitment from the logistics company. At McClain we are committed to earning your business each day, we see no need to force contracts upon our clients. We perpetuate top-notch service, and our clients don’t want to leave. At McClain, your goals are our commitments.

We are

Logistics Experts

At McClain, our employees are what set us apart from the rest. With experience in various industries and a passion for logistics, our team is constantly prepared and on the clock 24-7. Your dedicated logistics expert will get to know you, your customers, and your vendors personally, and will build a relationship that fosters communication, efficiency, and trust. Each time you make contact with McClain, you will know the person on the other end of the line.

Each department (LTL, TL, Intermodal) within McClain is managed by a logistics industry expert, knowledgeable not only in their respective department but in how each department works cohesively together to comprise their customer’s transportation footprint. With this being said, members of all departments are continuously collaborating across modes to uncover cost and time-saving opportunities for their customers.


Inbound-Logistics-Cover.png

Inbound Logistics

Economic Development Supplement

Logistics and Transportation in the St. Louis Region

Each year Inbound Logistics publishes a supplement highlighting the St. Louis Region. This year, McClain was fortunate enough to be asked to participate in the action! Check out the link below for the full digital issue and let us know what you think about McClain’s view on logistics and transportation in the St. Louis Region.

McClain and Associates’ location in the St. Louis region provides another advantage to its customers, no matter where they are based. “We’re able to expand our network,” McClain says. “Because we’re right in the middle of the country, that gives us access to carriers everywhere, on all coasts, and moving in all directions. We can be more competitive with our rates, because our network is larger.”


Intermodal-Transportation-IMC.png

Don’t let truckload capacity derail your supply chain

We live in a world where CEOs, CFOs, CIOs, COOs, Presidents, VPs, Managers (you get the point) are pressuring logistics managers to cut costs, improve customer service, and utilize data to implement cost saving strategies. Intermodal transportation is a strategic solution that helps to solve these problems and many more, that is often overlooked due to its less than [trustworthy, reliable, competitive, efficient] reputation that it earned in the past.

What you may not know, is that the intermodal transportation industry has invested billions into:

  • Augmenting Safety Procedures
  • Improving & Maintaining Infrastructure
  • Expanding Network of Lanes
  • Strengthening Regulations
  • Advancing Technology
  • Training Employees
  • Damage Prevention

These efforts have allowed railroads to reposition themselves as an effective and trusted alternative to OTR Transportation. In fact, railroads have invested their own capital (with no help from the government, as in other sectors or modes of transportation), approximately, $600 billion since 1980, and $25 billion annually over the last 5 years, to accommodate the 45% expected increase in freight shipments by 2040, according to the US Federal Highway Administration.

Benefits of Intermodal Transportation

Converting truckload shipments to intermodal with a trusted IMC has cost benefits, service benefits, and environmental benefits, however, we have found that many shippers still have a (false) negative perception of intermodal transportation. As a result, we have created our Intermodal Myth-Conceptions info-graphic, putting shippers minds to rest and ensuring them that rail is a viable alternative to OTR transportation.

  1. 1 Train can take 280 trucks off the highway
  2. Intermodal loads boast 98% accuracy for on-time deliveries
  3. Trains, on average are four times more fuel efficient than trucks
  4. A train can move freight 450 miles on ONE gallon of fuel
  5. If just 10% of OTR freight was converted to rail, fuel savings would exceed 800 million gallons, per year and greenhouse gas emissions would fall by more than 9 million tons
  6. Removing 10% of OTR freight is equal to taking 1.8 million cars off the road or planting 215 million trees

For More Info on Intermodal Transportation

Download our Intermodal Myth-Conceptions Infographic or Check out our website or contact McClain for a quote/consultation!


TMS-Headerx1-1200x600.png

TRICK QUESTION!

ALL Companies Benefit from a Transportation Management System (TMS)


Many companies question their need for a Transportation Management System (TMS). Maybe you have an in-house TMS built years ago that works “just fine”. Maybe you think it will be expensive and the ROI doesn’t seem worth the time and effort it would take to implement, and you wouldn’t be the only one. Maybe you think no company will be able to meet all of your complex needs. Whatever it is that’s holding you back, it’s costing you cash, inducing employee burnout, wasting time, and probably having negative effects on customer service and possibly JIT inventory.

Implementing a TMS helps you look at your transportation program as a whole, not just the flat cost of the freight. Decisions that you make surrounding your freight have not-so-obvious costs that are often not quantifiable. For example, do you know how long it takes for your accounting team to audit freight bills and request corrections? How do you know they are catching all the mistakes? LTL invoices are incorrectly billed 3% of the time by an average of $119.36! Wouldn’t it be nice to have this process automated!?

Keep reading to the top reasons to implement a TMS.

1. Transportation Management Systems (TMS) Helps Improve Customer Service

By implementing a TMS, all of your transportation data and information is in one place allowing all members of your organization quicker access to quoting, scheduling, and tracking tools. For example, when a customer calls a CSR, Sales Rep, really anyone in your company, wondering where a shipment is, a quick TMS search will give you real-time tracking info instantly. Additionally, modern transportation management systems can send automated notifications when an order ships, providing a link for customers to access real-time tracking without even having to contact you.

2. TMS’ Create Warehouse Effencies

A TMS reduces the time spent managing freight, and increases the time spent on more important tasks/projects. Furthermore, with visibility of inbound shipments, you can schedule receiving staff accordingly and reduce wait time.

If your TMS is integrated with your ERP system, you spend less time manually inputting data (and less time correcting errors). Plus, with integrations, PO and transportation data are contained in a central repository, which allows for more informed decision making and decreases risk.

3. Do You Want to be Proactive or Reactive?

If current situations have triggered an assessment of your transportation needs, you’re operating with a reactive design. If you are looking into the future and considering events that aren’t in the process of happening right now, you are (luckily) operating proactively.

When historical incidences of problems and the factors leading up to and causing them are analyzed, processes and procedures can be put in place to prevent them from happening in the future. By implementing an exception-oriented process to trigger alerts to stakeholders in the cases of potential problems, the effort and financial costs of uncertainty are drastically minimized.

4. Data, Big Data, and BIGGER Data

When shipment and order information is stored in a centralized location, the metrics rendered are invaluable. Not only is time saved, but errors caused by manual entry are avoided allowing clients to accurately manage and analyze transportation costs and execution performance data.

When assessing the transportation systems of a potential client, we always as them to provide 30-90 days worth of shipment data. For some customers this is almost impossible and a daunting task. These are the customers who need a TMS the most. Without the ability to analyze historical shipment data, they are unable to (at minimum):

  • Leverage carrier/vendor compliance data to negotiate better rates
  • Uncover opportunities for route optimization
  • See if transportation costs are rising and determine the underlying issues
  • Have an accurate P&L

Long Story Short

Long story short, companies of all sizes benefit from transportation management systems. Good 3PLs will provide you with some options, force you to modify processes, and maybe save you some cash. GREAT 3PLs will become your partner. GREAT 3PLs will work with you to analyze your processes for potential improvements, mold their processes to match yours, and customize their technology to match your unique needs.

If you want more information on a GREAT 3PL, give us a call or shoot an email to maeze@mcclainltd.com.


Location

Address

2458 Old Dorsett RD, Suite 250
Maryland Heights, MO 63043