How to Consolidate 10 Logistics Vendors Down to Two (Without Losing Service)

When procurement leaders discuss transportation strategy, one complaint comes up repeatedly: “We have too many logistics vendors.”

It’s an understandable problem. Supply chains rarely become fragmented overnight; they grow that way over time.

A manufacturer adds a dedicated carrier for plant-to-DC moves. A truckload broker fills overflow capacity. An intermodal provider handles long-haul lanes. Warehousing is outsourced to another company. Cross-border freight goes to a specialist. Regional deliveries require still more carriers.

Before long, a transportation manager is juggling:

• One dedicated carrier
• Two truckload brokers
• An LTL provider
• An intermodal partner
• A warehousing company
• A cross-border specialist
• Several regional carriers
• Multiple technology vendors

Every disruption requires another phone call. Every contract contains different pricing terms. Every supplier has its own scorecards, invoicing procedures, reporting formats, and escalation process. Instead of managing freight, internal teams spend their time managing vendors.

Vendor consolidation has become one of procurement’s biggest priorities — not simply to reduce supplier counts, but to simplify operations, improve accountability, and lower administrative costs without sacrificing service quality or specialized expertise.

Why Procurement Teams Are Consolidating Third-Party Logistics Services

Vendor consolidation is happening across nearly every industry. Procurement organizations are under constant pressure to reduce complexity while improving operational performance. And transportation is no exception.

Administrative Complexity Has a Cost

Every logistics provider adds work beyond simply moving freight. Each supplier requires its own:

• Contract negotiation
• Onboarding process
• Insurance verification
• Compliance reviews
• Performance scorecards
• Invoice reconciliation
• Quarterly business reviews
• Escalation contacts

None of these activities directly improve customer service or transportation performance, yet they consume significant internal resources. Reducing supplier counts often creates efficiencies long before transportation savings are even considered.

Transportation Networks Have Become More Connected

Modern supply chains rarely rely on a single transportation mode. A single shipment might involve:

• Dedicated transportation
• Truckload brokerage
• Warehousing
• Cross-border coordination
• Intermodal service
• Shipment visibility technology

Managing each function through separate vendors increases friction at every handoff. The more providers involved, the greater the opportunity for communication gaps, duplicated effort, and inconsistent execution.

Leadership Wants Strategic Partnerships

Many organizations have formal vendor rationalization initiatives aimed at reducing supplier counts. The objectives are straightforward:

• Better spend visibility
• Fewer contracts
• Lower compliance burdens
• Simplified procurement
• Stronger supplier relationships

Rather than managing dozens of transactional vendors, procurement teams increasingly prefer a smaller number of strategic partners capable of supporting multiple transportation needs.

The Hidden Costs of Managing Too Many Logistics Vendors

Transportation costs are easy to measure; administrative costs are not. Unfortunately, those hidden costs often become substantial as vendor lists grow.

Fragmented Accountability

When a shipment encounters problems, responsibility frequently becomes unclear.

The carrier blames the warehouse, which then blames the broker, which then blames appointment scheduling. The customer is left coordinating everyone else. Instead of solving the problem, each provider focuses on defending its own role.

Disconnected Data

Every logistics company reports performance differently. That often means:

• Different dashboards
• Different KPIs
• Different shipment visibility tools
• Different reporting schedules

Internal teams spend valuable time assembling information rather than acting on it.

Without standardized reporting, it becomes difficult to identify broader transportation trends or measure overall supply chain performance.

Duplicate Management Effort

Managing multiple providers requires continuous coordination. Transportation managers spend hours each week:

• Answering vendor questions
• Resolving invoice disputes
• Coordinating service transitions
• Holding supplier meetings
• Tracking carrier performance

Those hours could instead be spent improving transportation strategy, reducing costs, or enhancing customer service.

Why Many Consolidation Efforts Fail

Despite the appeal of reducing suppliers, many consolidation projects produce disappointing results. The problem usually isn’t consolidation itself, but choosing the wrong model.

The ‘One-Stop Shop’ Trap

Some providers promise to handle every transportation requirement. In practice, they may offer broad capabilities but limited operational depth.

That can lead to:

• Reduced service quality
• Limited equipment availability
• Weak regional expertise
• Less operational flexibility

Breadth only creates value when it is backed by genuine transportation expertise.

Forced Bundling Creates Resistance

Many procurement leaders hesitate to consolidate because they worry they’ll lose flexibility. Common concerns include:

• Being required to purchase services they don’t need
• Losing negotiating leverage
• Giving up specialized providers that perform well

Successful consolidation should simplify procurement — not eliminate customer choice.

What Smart Consolidation Actually Looks Like

The most effective logistics strategies don’t eliminate specialization. They organize it more effectively.

One Commercial Relationship

Instead of negotiating multiple transportation contracts, companies increasingly prefer:

• One master services agreement
• One service-level agreement
• One procurement relationship
• One executive sponsor
• One escalation path

This dramatically reduces administrative burden while simplifying governance.

Multiple Specialized Operating Capabilities

A modern transportation partner should still provide access to specialized services, including:

• Dedicated transportation
• Truckload brokerage
• LTL management
• Intermodal
• Cross-border logistics
• Warehousing
• Supply chain support

The difference is that procurement no longer has to manage each capability through a separate supplier.

The TCG Model: Integrated Third-Party Logistics Services Without Forced Bundling

TCG represents a different approach to third-party logistics services. Rather than building a logistics company from scratch, TCG brings together 10 transportation companies that each developed expertise in a particular discipline over decades of operation.

They are:

• Contract Transport Services (CTS)
• Walt’s Drive-A-Way
• Total Logistics Inc. (TLI)
• Dedicated Logistics Inc. (DLI)
• Dedicated Logistics Services (DLS)
• Sky Transportation and Sky Mexico
• Industrial Transport Services (ITS)
• COPP of St. Louis
• International Logistics Solutions (ILS) and ILSCI

Each built its reputation serving different transportation needs, customers, and markets. Today those capabilities operate under one integrated operating company.

One Number to Call

For customers, integration means simplicity. Instead of navigating multiple organizations, they gain:

• One commercial relationship
• One customer service organization
• One escalation path
• One accountable operating company

If a shipment encounters problems after business hours, customers know exactly who to contact.

Use Only What You Need

Vendor consolidation should never mean buying services you don’t need. TCG customers can engage individual capabilities as their business evolves. Some use dedicated transportation, while others rely primarily on brokerage. Some require cross-border expertise, while others combine multiple transportation modes under one relationship. The objective is flexibility, not forced bundling.

What Vendor Consolidation Looks Like in Practice

Imagine a mid-market manufacturer with 10 separate logistics vendors.

Before consolidation:

• Dedicated carrier
• Regional trucking company
• Truckload broker
• LTL broker
• Cross-border provider
• Intermodal provider
• Warehouse operator
• Shipment visibility platform
• Yard management provider
• Expedited transportation company

Each relationship involves separate contracts, contacts, invoices, reviews, and reporting.

After consolidation, that same manufacturer only has to maintain one strategic relationship, with TCG as its primary transportation and logistics partner. The transportation options remain largely the same; the administrative workload does not.

The benefits include a single master contract and escalation path, fewer meetings, simplified reporting, clear accountability and better visibility. Life gets simpler for procurement teams, without having to sacrifice transportation flexibility.

Additional Capabilities Without Adding More Vendors

Transportation rarely exists in isolation. Supply chains increasingly require complementary services that extend beyond freight movement. Through its broader relationship with The Cox Group, TCG customers also have access to additional capabilities when needed.

Warehouse Services Inc. (WSI)

Customers needing warehouse support can leverage WSI for:

• Warehousing
• Distribution
• Inventory management
• Supply chain services

PhishFirewall

Supply chain resilience increasingly includes cybersecurity. PhishFirewall offers SaaS-based cybersecurity solutions that help organizations strengthen digital defenses alongside their physical supply chains.

IPG

Customers with specialized industrial requirements can also access IPG’s expertise in industrial plastics.

Importantly, none of these services are mandatory. They’re available when customers need them, without requiring new vendor searches or additional procurement cycles.

Questions Procurement Leaders Should Ask Before Consolidating Vendors

Before reducing supplier counts, procurement teams should evaluate potential partners carefully.

Consider asking:

• Can this provider support multiple transportation modes?
• Is there a single escalation path?
• Are specialized operating teams preserved?
• Will multiple services require separate contracts?
• Can new capabilities be added without restarting procurement?
• Is the organization large enough to scale while remaining responsive?
• Does leadership remain accessible when problems arise?

The answers often determine whether consolidation improves service — or simply changes who creates the headaches.

Fewer Vendors. More Accountability.

Vendor consolidation is not about reducing numbers for the sake of efficiency. It’s about creating a transportation network that’s easier to manage, more accountable, and better aligned with business growth.

The strongest consolidation strategies combine:

• Specialized transportation expertise
• Operational flexibility
• Simplified supplier management
• Clear accountability
• Scalable third-party logistics services

For many mid-market manufacturers, distributors, and product companies, that means replacing a collection of disconnected providers with one strategic logistics partner capable of supporting dedicated transportation, brokerage, intermodal, cross-border freight, warehousing, and supply chain services through a single commercial relationship.

TCG was built around exactly that model. Backed by The Cox Group’s 40-year operating history, approximately $700 million in annual revenue, more than 4,000 employees, and 50 locations across the United States, Canada, and Mexico, TCG combines the depth of specialized transportation companies with the simplicity of one master agreement, one escalation path, and one accountable partner.

If your procurement team is spending more time managing vendors than managing freight, it may be time to simplify. Contact TCG to learn how a consolidated logistics strategy can reduce administrative complexity while preserving the specialized expertise your supply chain depends on.