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In the intricate realm of logistics, two terms often create confusion: Managed Parcel Solutions (MPS) and Transportation Management (TM). Though they might sound similar, their roles, functions, and impacts on a business vary significantly. This article dives deep into MPS and TM, highlighting their differences and explaining how to leverage them to streamline your shipping operations.
Managed Parcel Solutions (MPS) is a service where businesses delegate their parcel shipping operations to an industry expert or a third-party logistics provider (3PL). These experts leverage their comprehensive knowledge about the industry, carrier networks, and shipping regulations to provide efficient, cost-effective parcel shipping solutions.
MPS encompasses a host of services that collectively aim to optimize your parcel shipping operations.
Here’s an overview of some primary functions:
Transportation Management (TM), or 4PL, on the other hand, is a broader concept that encompasses the management of all transportation operations within a supply chain. It includes everything from planning and executing shipments to monitoring and controlling transportation activities.
Depending on the intricacy of your supply chain, the role of a TM can be vast for your ecommerce business.
Let’s take a look at some of the roles they can play in your logistic needs:
Now that we’ve unraveled MPS and TM, let’s dive into their differences:
Despite their differences, MPS and TM are not mutually exclusive. The implementation of both can be quite complementary to each other. Businesses can leverage MPS to optimize their parcel shipping operations and TM for managing other types of shipments.
Moreover, many TM solutions now offer parcel shipping capabilities, essentially combining the benefits of MPS and TM in a single solution. This blended approach can provide businesses with the best of both worlds – the efficiency and cost savings of MPS and the comprehensive control and visibility of TM.
Choosing between MPS and TM largely depends on your business needs and the complexities of your supply chain. If your business primarily involves parcel shipments and you prefer to outsource your shipping operations, MPS could be a good fit.
On the other hand, if you manage a variety of shipment types, are shipping globally, and prefer to maintain control over your transportation operations, a TM solution might be a better choice.
Remember, regardless of whether you choose a managed parcel solution, a transportation management model, or a combination of both, the goal is to simplify your shipping operations, make them more cost-efficient, and improve service levels.
As you navigate the complexities of MPS and TM, a parcel consultant can be an invaluable resource. Parcel Consulting connects product-based businesses with the best shipping rates and technology. Their shipping experts have worked with nearly every local, regional, national, and international carrier, giving them unmatched industry expertise, knowledge, and connections.
Parcel Consulting offers free advice and shipping rate reviews with no obligation. They believe in showing what they can do and letting you decide if it works for your company. Whether you’re considering MPS or TM, a parcel consultant can guide you in the right direction, ensuring you get the best possible solution for your shipping needs.
Managed Parcel Solutions and Transportation Management both play pivotal roles in streamlining logistics and enhancing operational efficiencies. Understanding the nuances of each can help businesses make informed decisions, ultimately leading to significant cost savings and improved customer satisfaction. Whether you choose MPS, TM, or a blend of both, always remember that the ultimate goal is to optimize your shipping operations, reduce costs, and deliver unparalleled service to your customers.
In addition, don’t forget the value that a service like Parcel Consulting can bring to your logistics operations. They can provide you with the insights, recommendations, and connections you need to make the most of your shipping operations. With their support, you can navigate the complexities of MPS and TM with confidence and ease.
At Parcel Consulting, we help any business see how their rates and parcel strategy stacks up against their competition and the largest retailers in the world.
Our shipping experts and innovative analysis process allow your business to know they have the best shipping rates possible and they are utilizing the most effective strategies to get their packages delivered to each and every customer.
Contact us today at 833-727-2351 or schedule a shipping consultation online here.