Outsourcing of Logistics?

The modular construction industry has seen impressive growth. It has become a well-respected construction method as traditional building methods become cost-prohibitive.

In North America, this industry passed $12 billion in 2022. As modular construction methods become more widespread, their common challenges need addressing. The most prevalent are logistics and transportation difficulties. 

What term is used to describe the outsourcing of logistics? Find out how outsourced modular logistics services can streamline the construction process. Reduce your risks, costs, and delays. 

What Term Is Used to Describe the Outsourcing of Logistics?

Logistics outsourcing is when a company works with a third party. That outside company provides support for the shipping company’s logistics services.

The term often gets used in the supply chain industry when referring to warehousing, shipping, inventory management, or packaging. The service is called third-party logistics or 3PL in the transportation and shipping industry. 

The third party is the middleman. It works between the company needing the shipping service and the carrier providing the shipping service.

A 3PL can also coordinate with the modular factory and site crew when applied to the modular construction industry. This ensures a smoother construction process. A 3PL coordinates the transport of completed modular elements with the construction site’s needs. 

Benefits of Logistics Outsourcing

Several benefits come with outsourcing your modular construction shipping logistics. You meet deadlines when you work with the proper transport and logistics partner. You develop a strong industry reputation when you complete projects on time, on budget, and maintain quality. 

Cost Savings 

Mistakes are costly in the construction industry. Outsourcing reduces the risk of mistakes by partnering with a company that knows how to avoid them. Outsourcing also leverages valuable resources that you do not have internally or at the ready. 

Optimized processes also reduce transport costs. With streamlined shipping, you can cut staging area costs. Better trailer loading and management reduces damaged, lost, or stolen components. 

Improved Efficiency 

Your core competency is modular construction. You need a logistics company whose core competency is modular component transport. Work with a company that has years of experience. They have developed the processes and technology to maximize efficiency. 

Access to Specialized Expertise and Services 

You access experts and industry specialists by outsourcing your logistics and transport needs. These are people you wouldn’t otherwise work with.

You leverage their years of experience, training, and knowledge to optimize your processes. This improves productivity and operations while reducing the risk of making costly mistakes. 

Scalability 

Scalability is essential for growing modular construction companies. Working with a logistics company helps modular construction companies to scale faster.

The logistics and shipping service should have the resources to meet increased demand. This includes having trucks, shipping lanes, and staging sites available.

Risk Management 

Reduce your risk by working with a logistic service. It needs to specialize in modular construction shipping.

A specialized third-party shipper understands the security and damage risks of freight shipping. They can provide solutions to mitigate risk, reducing your potential costs. 

What Is Modular Building Transport? 

Modular transport is a specialized sector of freight logistics. It requires the transport of mods, pods, and panels. These are the core elements of modular building.

Their safe transport is essential to maintain costs and productivity. Modular component transport is more complicated than generalized freight transport and logistics. It requires coordinating shipments between the manufacturer’s factory and the contractor’s job site. 

Rush shipping or making delivery too early results in costly staging fees. Delayed shipment deliveries result in expensive construction delays. Site crews ready to work will become lost productivity costs with nothing to work with. 

Mods 

While mods are the core framework in modular construction, they are challenging to transport. Reducing risk is essential, as transport delays result in high construction delay costs.

You need a logistics partner that understands the consequences of transport mistakes. Specialized hydraulic and air float trailers safely support mods. 

Reputable transport providers will use outriggers when transporting modules. These horizontal support structures evenly distribute the module’s weight.

That way, the weaker points of the module experience reduced stress. This protects the mod’s structural integrity. 

Pods 

Construction timelines depend on the timely delivery of pods. Without them, you face thousands in idle costs, and crews and cranes sit waiting. With suitable trailers, pods get transported and delivered when promised. 

Step deck, lowboy, flatbed, and hot shot trailers safely and effectively transport pods from the factory to the job site. Look for a logistics provider with a fleet of trailers.

The trailers need to be capable of transporting pods for various construction projects. This could include data centers, kitchens, power supply, and bathrooms. 

Panels

The delivery timing of panels is crucial to ensure a modular construction project. On-time delivery maintains productivity and completion timing. 

Ideally, they have a just-in-time delivery. That way, you avoid expensive long-term storage and over-handling. 

It also ensures you reduce construction delay costs. You must outsource your modular logistics to a company that can coordinate effectively. You can optimize transport from the manufacturer to the building site. 

Effective trailers for transporting panels safely include a step deck, flatbed, and hot shot. Having a variety of trailers ensures your logistics provider has a solution for every type of panel you need to be shipped. Depending on the size of the panels and how they are packaged, you may need vertical, horizontal, or both shipping methods.  

Transport for Diverse Modular Construction 

Generalized transport logistics companies will often assume that modular construction is uniform. But, each modular project has its nuances and challenges. They need a logistics service that understands this and can adjust accordingly. 

Common modular construction projects include: 

• Commercial 
• Multi-Family 
• Industrial 
• Clean Rooms 
• Government Housing 
• Student Housing 
• Healthcare 
• Data Centers  

You need a shipping partner that understands the unique needs of your type of modular construction. This includes required permits or escorts. Then, staging yard management was done in preparation for the set crew. 

An experienced modular logistics company can coordinate between a wide variety of clients. This could include the modular manufacturer, large-scale developers, key stakeholders, and general contractors. 

Modular Outsourcing Logistics Process 

The first step in the outsourcing process is to select a third party logistics company that provides the services you need. That company will do a project analysis and compile a report or proposal. You start working together if it aligns with your needs, timeline, and budget. 

Your logistics company will get to work communicating with the necessary parties. They will arrange to pick up with the factory, transport, and DOT requirements, and delivery to a staging area or job site. As project phases get coordinated and accomplished, your logistics company will communicate milestones. 

What is Included When Outsourcing Modular Logistics 

You can have complete supply chain management when you outsource your modular logistics. This includes project scope determination and site coordination.

You have a partner in constant communication. That way, you know the status of your modular transportation logistics for better project management. 

Project Scope Analysis

Work with a logistics service that can provide a comprehensive suite of services for the most benefit. Before your modular construction project begins, they should provide a complete project scoping.

That way, you have an accurate estimate for the necessary coordination. You will understand accurately what it takes to transport all building components from the factory to the building site. 

Proposal Creation

You should save time and resources by outsourcing your modular logistics needs. This starts with receiving a comprehensive project proposal.

This detailed plan should clearly outline the project needs, scope, timeline, and costs. That way, you can accurately budget for modular transportation costs. 

Factory to Site Coordination

A modular logistics company can take transportation coordination further than a generalized 3PL. Their services go beyond origin to destination transportation services. Modular logistics companies can coordinate with the source factory and construction site. 

This streamlines on-site inventory management for increased cost savings. The set crew can have inventory delivered in coordination with site progress to reduce the dependence on offsite staging.

Transportation Management

The modular construction model affords the construction industry many benefits. One area that lags in development is code enforcement and compliance.

Inspectors need to ensure the modular elements meet the local building codes. This is a challenge when the building’s components get built somewhere else. They are then assembled on-site. 

Code inspector coordination is crucial to ensure they can see the elements they need. Otherwise, they get concealed and are no longer accessible. 

Real-Time GPS Tracking

Always know where your modular shipments are with real-time GPS tracking. Having trackable shipments increases shipment security, mitigating risk. It also streamlines operations by enabling appropriate site planning for impending shipments. 

Open Communication

You should know the status of your modular transportation at all times. This improves your project site management and enables better completion timeline predictability.

Constant communication helps streamline the construction process. It enables you to make more informed decisions. Key investor management becomes more manageable as you can readily answer inquiries. 

Tips for Choosing a Modular Shipping 3PL 

Before asking for proposals, look for a dedicated modular logistics company. General freight companies do not have specialized trailers. They also do not have the same level of knowledge or service. 

Ask for industry recommendations. That way, you find a logistics company with a track record of reliable performance. 

Consider cost; a company outside your budget will impact the entire project. Do not choose a modular transport service based solely on price. Investing in quality services upfront reduces long-term costs. 

Request a walkthrough of a sample project. That way, you can understand their approach and systems. 

Trust Stream Modular 

You have more than outsourced shipping services when you trust Stream Modular. You have a logistics partner. Our experienced team specializes in modular construction shipping. 

We work with a wide range of clients on many types of modular construction projects. This is our love and our passion. It is this genuine excitement that helps us bring enthusiasm to your project. 

Highest Level of Specialization

Founded in 2012, we have over ten years of dedicated shipping services for high stakes freight. Our founders have a passion for excellence.

It has constantly driven the company to find better methods for established processes. We continue to innovate, making the modular construction and shipping industry better.  

Tailored Focus 

Because we only transport mods, pods, and panels, we have in-depth knowledge of them. We make it our business to understand the challenges and opportunities of modular transport. We aim to be the best at one thing rather than being adequate at many. 

Our depth of knowledge extends to problem-solving the complex and nuanced needs of modular transport. 

Faster Start and Results 

Our targeted focus on modular shipping means we have the systems, strategies, and tools ready to put in place. A general logistics service may not have any or minimal experience with modular construction shipping. That way, they can meet the industry standard of schedule compression of 39% from traditional construction. 

With our streamlined processes, we start services quicker. This contributes to modular construction companies hitting their completion dates sooner. 

Improved ROI 

When you work with a company specializing in what they do, you get to use their optimized processes. Our years of experience enable us to establish the most effective logistics solutions.

We avoid costly mistakes. You benefit from significant savings by avoiding delays and lost productivity costs. 

Invest in your construction project by trusting the professionals. We deliver on our promised performance so that you can meet your construction timeline benchmarks. 

Optimize Your Modular Construction Shipping 

What term is used to describe the outsourcing of logistics? Third party logistics is the solution to streamlining transportation management.

It applies to the shipping of your modular construction elements. Outsourcing logistics lets you use the expertise of those specializing in modular transportation. 

Stream Modular specializes in streamlining transportation needs. We address the project scope, coordinate between factory and site, and improve communication. With active logistics management, construction timelines are reduced with smooth execution.  

Improve your modular construction processes by talking to one of our experts today.

Stream Modular is a transportation logistics company specializing exclusively in modular construction. We help modular manufacturers and builders transport mods, pods, and panels so they arrive on time and safely to the build site.