Tim Thomas, Co-Founder
In general, 3PLs fall into one of two categories; the transactional/ brokerage 3PL who focus mostly on cheap TL and LTL rates, and the value added/fully managed 3PL who provide value add and fully managed logistic services for their customers. This includes carrier RFPs in TL, LTL, audit, claims mitigation, and many others. Both brokerage and fully managed categories have seen success. However, the current market shift is posing a big threat to the transactional 3PLs if they can’t differentiate themselves from either large 3PLs who have great buying power or the carriers looking to take the business back for more profitability. In fact, some technology companies are suggesting that this is the end of 3PLs altogether under the guise of giving the shipper “full control” when what they are really providing is just direct carrier rates.
The relationships transactional 3PLs have built with their customers won’t last long if they don’t have enough value-added services to offset the lower priced large 3PLs. In today’s market we are seeing an increase in individual carriers offering basic, entry-level TMS solutions with “blanket rates” in hopes of winning business from 3PLs.
While many fully managed logistics companies strive to prove their value, most simply don’t have the technology needed to service their customers or meet the increasingly high demand for visibility and service using one cohesive platform.
With customers needing better service, a basic TMS that simply offers low cost providers won't solve the customer’s real need.
The purpose of Propel TMS is to provide visibility and integration between the customers and end-users on one easy-to-use, streamlined platform
Shippers are looking for 3PLs that have a robust and simple TMS solution that allows them to better service their customers by providing customers competitive pricing, improving accuracy, visibility and control over their logistics. As a result they can provide better service and get more consistent information and move away from transactional relationships. This is especially prevalent in the 3PL fully managed LTL space.
Launched in 2017, Propel TMS not only focuses on the needs of 3PL providers but goes beyond that to help them leverage fully managed TL and LTL services. “Propel TMS provides visibility and integration between 3PLs and their customers with one easy-to-use, streamlined system,” says Tim Thomas, Co-Founder of Propel TMS.
3PLs can go beyond providing aggressive pricing and simultaneously offer change management capabilities. This gives them the ability to leverage all their expertise and resources while providing a TMS that enables back office support and works as an extension of their customer’s logistics department, allowing them to provide a unified experience.
Thomas further mentions that every company today aims to increase efficiencies with the transactional model of selling a component of a TMS, which has created open grounds for Propel to excel. “We feel that there is a lack of a cohesive and seamlessplatform that can tie all the threads of logistics together, and that’s where we come into the picture,” states Thomas.
Propel’s system automates the disparate sets of abilities and tools and syncs them to offer the end-users with a seamless, comprehensive, and intuitive platform. Propel’s aim is to provide true, value-added services for the industry and to establish itself as the leader in the TMS industry.