Freight Logistics Software: Frequently Asked Questions

Shippers have three options for managing the shipping process: maintaining an in-house logistics department, outsourcing to a Third Party Logistics (3PL) provider, or implementing freight logistics software. When the objective is to choose the most economical option, most shippers choose the third option for the following reasons:

  • It gives them more control over the shipping process
  • It does not require a staff of transportation management experts
  • It allows them to choose from a broad range of carriers
  • It allows them to perform a freight audit without the help of a third party
  • It allows them to avoid paying high service fees to a third party

If you are considering making logistics software a part of your shipping process, but you need more information, the answers below can help.

How does the product compare to 3PL?

The product compares favorably to Third Party Logistics (3PL). Unlike 3PL, it does not place the logistics function in the hands of a third party. Instead, it allows the shipper to become its own logistics provider by providing resources for executing and managing the shipping process. Consequently, using the product is typically more affordable than outsourcing to a 3PL provider.

Does the product come in different configurations?

The product can be configured to meet the needs of the shipper. For example, while one shipper may need a configuration for Less Than Load (LTL) shipping, another shipper may need a configuration for transportation management. All configurations can facilitate administrative tasks such as a freight audit.

Is the product available on a SaaS model?

Freight logistics software is available on a Software as a Service (SaaS) model. It is also available on an in-house model. Because it eliminates the need to purchase software and perform system maintenance, the SaaS model is typically more affordable than the in-house model.

How long does it take to implement the product?

When the product is configured to accommodate a unique shipping process, it is typically implemented thirty to forty-five days after the initial service request. In most cases, the system is up and running within forty-five days.

How much money can a company save by using the product?

The amount of money a company saves depends on two things: what the product replaces, and how much it lowers shipping cost. Using the product to replace a department of freight auditors can yield a six-figure payroll saving. A similar saving can result from using the product to replace the services of a high-level 3PL provider (e.g. customer developer or customer adapter). In terms of shipping cost, most companies report a ten percent reduction in shipping cost after using the product for one year.

Conclusion

Freight logistics software is an economical solution for shippers who need to save money on shipping logistics and reduce the cost of shipping. In addition to accommodating the needs of unique shipping processes, it also allows shippers to perform ubiquitous administrative tasks such as a freight audit. To learn more about benefits of the product, contact a provider of logistics software today.

Logistics Management – Handling Your Business Can Be Complicated

Managing logistics is one of the main ways that a company can learn to get ahead. Whether you have a trucking company or some other type of transportation company, there are choices for you when it comes to how to handle your logistics management. One of the things you can do is get a consulting or managing company to help you with your needs. If you do that, you’ll have professionals on your side and they can often give you better suggestions as to how you can streamline your company and make it more efficient.

Logistics management often involves the use of computers, too, because computer programs that handle information much faster and more accurately than human beings are becoming increasingly popular in the trucking industry. You can use a program, a company, or a combination of the two in order to get the information you need and keep your business moving in the right direction. Companies that focus on logistics are often better at staying competitive, because they’re able to provide better service for their customers. Their deliveries are more reliable than those of other companies, and they have the ability to track those deliveries more easily.

When you decide to get someone to help you with logistics management, be sure that you choose the right company. There are plenty of consulting and managing companies, but they don’t always provide the same services. In addition, you’ll want to get a company that’s been in business for some time and that’s used to working with the trucking and transportation industry. If you find a company like that, you can get what you need with as little hassle as possible. That can give you peace of mind and also help you feel like you’re not overpaying for what you’re receiving.

Handling logistics alone can be hard, and it’s often stressful. By letting a logistics management company help you, you’ll have time to focus on other aspects of the business. That can help you keep up with your competition and can also give you the opportunity to look at expanding your business through mergers or acquisitions. When it comes down to making choices for your business, the best choices are the ones that will keep you competitive and allow you to move in the right direction. When you have professionals helping you, there is less trial and error in your business choices.

How Transportation Management Software Promotes Intelligent Execution

There is a subset of supply chain management called “transportation management system” that refers specifically to transportation operations and is a component within an enterprise resource planning system. This area has evolved quite a bit in recent years thanks to technological advancements, and now transportation management software has made it possible for companies to add context to a shipper’s transportation data. This software oversees four key processes of transportation management: planning and decision making, transportation execution, transportation follow-up, and measurement. Modern transportation management software has the ability to use context to determine whether:

  • an incorrect invoice charge was caused by a carrier re-weighing their freight or by re-classifying their freight
  • a shipment arrived late due to inclement weather or due to the consignee not being available to sign for the delivery

These are just two examples of the types of judgments that logistics shipping companies can make with the help of transportation management software. Here are a few more ways that this technology can be used today:

Exception Management Process

This software can be configured to periodically alert an individual when lanes, carriers, or facilities do not meet specified targets. This is especially helpful because it allows managers to instantly know when the amount of business their company is doing has changed. Before transportation management software, management would have had to wait up to a year before being made aware that targets were not being met. The sooner that management is aware of a problem, the sooner it can begin to look for a solution.

Freight Execution

Today, a single transportation management software product can be used for shipments in all modes, whereas before additional applications had to be added for special cases like small parcels. Additional documents, which are needed for shipments like pallet labels or hazardous materials documentation, can now be printed on-site. In the past, this documentation needed to be printed ahead of time.

Improved Communication

Logistics shipping companiescan provide vendors with a tool that allows them to pre-load shipping business’ rules, carriers, and purchase orders. Using this pre-loaded information, vendors can send shipments to the shipper’s carriers without having to wait for the carrier to provide this information.

Dashboards

All of the aforementioned data can be pulled into a centralized location, or dashboard, that shippers can use to monitor the company’s freight activity in real-time. The result is an effective measurement of the Freight Payment and Pre-Audit so that it matches the data that is continuously coming in. Put more simply, the ability to monitor this data in real-time means that shipper is finally able to determine what is happening in their supply chain. Only by staying up-to-date on trends and data will a shipper be able to make the most intelligent decisions.

When logistics shipping companies decide that they are ready to acquire transportation management software, they have three ways to do so. They can use a traditional purchased license (on-premise licensing,) a remote or cloud-based solution (hosted licensing,) or a blend of these two options (on-premise hosted licensing.) Shippers looking to determine which option is best for their organization should reach out to a transportation management software provider about their preferred opinion.