In an era where supply chain volatility is the norm, companies are increasingly looking for ways to streamline operations without surrendering control of their strategic carrier networks.
While many shippers hesitate to outsource their transportation management due to fears of losing visibility, e2open’s Logistics as a Service (LaaS) is proving that companies don’t have to choose between execution capacity and strategic control.
A unique approach to LaaS
Unlike traditional managed transportation services that force shippers to hand over the keys to logistics operations entirely, e2open’s LaaS model is designed around flexibility.
The service allows shippers to outsource their day-to-day execution while retaining full ownership of their carrier strategy and pricing agreements. This collaborative approach expands access to capacity without compromising existing partnerships – all within the e2open transportation management system (TMS) ecosystem.
“So you can do it yourself, or we can take on that work for you, and you can pay us to do that work for you,” said Matthew Anderson, vice president of e2open’s specialty products, in an interview with FreightWaves. “There’s no competing priorities. So we’re not trying to hit certain brokerage numbers. We’re not trying to make money on a per load basis. … It is strictly geared around saying you’re capable of using the technology yourself using the TMS, but we can do it for you.”
By offering flexible engagement models that range from hybrid support to a full outsource, e2open helps companies reduce empty miles, manage inbound and outbound shipments.
The service currently manages over a quarter of a billion dollars in freight and cuts clients’ transportation spend by up to 10%.
The team behind the technology
While e2open provides industry-leading Transportation Management System (TMS) software, the true engine of its LaaS offering is its people. The service employs over 300 logistics coordinators, analysts and supply chain engineers across locations worldwide in Holland, Michigan and Peru.
Molly Feller, vice president of e2open’s LaaS branch, explained how the team manages to scale such a massive operation while maintaining high service levels.
“One of the things that we’ve spent a lot of time on is working to create processes that can be easily repeatable – and so we have a lot of [standard operating procedures],” she said in an interview with FreightWaves. “We want people to come here and have a career here as well. We have a really great onboarding process [and] career advancement process.”
This strong foundation of standard operating procedures recently allowed the company’s LaaS team to expand rapidly into South America, growing its Peru team from zero to 80 employees in just a year and a half.
Real-world results: Aspire Bakeries
The value of this dedicated human expertise paired with advanced software is evident in e2open’s case study on its LaaS partnership with Aspire Bakeries.
The cross-category foodservice company – home to popular brands like Otis Spunkmeyer and La Brea Bakery – was initially a software-only user of e2open’s TMS. However, as Aspire Bakeries experienced a significant increase in business volume alongside severe winter weather disrupting the transport industry, the company realized it was only using the TMS to tender freight and wasn’t fully leveraging the data.
To capitalize on the system’s more complex capabilities, Aspire Bakeries transitioned to the LaaS model. Today, a dedicated e2open LaaS team – consisting of load planners, a systems admin, a carrier management specialist and a manager – runs the transportation technology on the bakery’s behalf.
This dedicated group makes real-time decisions to mitigate costs and service risks, turning complex TMS data into actionable intelligence.
Through combining cutting-edge technology with a deep bench of supply chain experts, e2open helps ensure that companies like Aspire Bakeries can weather industry disruptions and focus on their core business, leaving the heavy lifting of logistics to the experts.
The post e2open Logistics as a Service gives shippers control while driving capacity appeared first on FreightWaves.
