Managed Transportation

Managed transportation is a service model where a shipper hands off day-to-day transportation operations to an external provider – typically a 3PL or specialized managed transportation company – while retaining strategic oversight and decision-making authority. The provider acts as an extension of the shipper's logistics team, executing loads, managing carriers, auditing invoices, and reporting on performance using their own technology, processes, and people.

A managed transportation engagement typically covers carrier procurement and rate negotiation, daily load planning and tendering, shipment tracking and exception management, freight audit and payment, and performance analytics. The provider may use their own TMS or operate within the shipper's existing systems. Pricing models vary – some providers charge a per-shipment management fee, others take a percentage of freight spend, and some use a fixed monthly retainer with gain-sharing incentives tied to cost savings.

Shippers turn to managed transportation when they lack the internal headcount, technology, or expertise to run their freight operations efficiently – but aren't ready to fully outsource to a 4PL or hand over strategic control. It's particularly common among mid-market companies experiencing rapid growth: shipping volume has outpaced what the logistics team can handle manually, but investing in a full TMS implementation and dedicated headcount feels premature or too slow. Managed transportation offers a middle path – professional execution without the capital investment.

The risk with managed transportation is dependency. If your provider controls the carrier relationships, owns the rate data, and runs the technology, switching providers or bringing operations back in-house becomes painful and expensive. Shippers who maintain their own system of record for rates, carrier performance, and shipment data – even while using a managed provider – retain the leverage to renegotiate or transition when needed.