Truckload Logistics Software – A Better Solution During Tough Economical Times

Companies that use large semi-trailers to haul their products need a little extra support to get the most out of their shipments. Truckload logistics software works best for companies that produce enough freight to use full truckload shipping. There are alternative software choices that are just as helpful for smaller to mid-sized companies that must use less than truckload shipping for cost effectiveness. This shipping alternative takes the freight of many companies and fills a truck. The cost is split between the companies using the service. Both types of software can be used to perform better management of freight. This work can also be contracted to third party logistics experts. What most companies find is that the software gives them better control and is a much smaller, reliable investment. The struggling economy has left many companies trying to determine how to decrease budget costs so they can continue to be profitable. Logistics is one way to lower shipping costs and manage company freight. By being able to maximize the load capacity and pick the best routes, costs are drastically decreased making the software very useful.

Truckload Logistics Software: How Does It Save Companies Money?

Companies that do not rely on truckload logistics software often result to hiring third party providers. There are many reasons why this does not produce the desired cost savings. Third party providers are in the business to make money as everyone else. They choose routes and carriers that in turn make them a profit. By using managing your own shipping choices, every carrier and route chosen benefit the company and making someone else profitable is completely taken out of the picture. The weakened economy has also caused many third party logistics companies to increase rates. Discounts given by carriers have almost diminished and they must make up for the price difference. These discounts are a main source for their profit. A higher price is charged to your company over the discounted price. Third party providers also only deal with carriers that offer favorable discounts. This reduces the amount of choices available when using these services. Software meant for logistics management removes this entire scenario and puts shipping back in company hands.

Truckload Logistics Software Does Not Have Expensive or Difficult To Implement

Truckload logistics software is not this huge project that will take years to put in place. The software is easy to set up and is done so by professionals. Companies that provide this software make it simple to integrate into existing systems. What should you look for when evaluating software requirements? First, look for a company that uses non-proprietary tools. This reduces dependency on the software provider when something changes with your business or the technology being used. Software that operates with common operating systems and has non-dependent tools and utilities will work better in the existing technological environment. It will also be easier to use, more familiar, and cost much less. With the right company and software, implementation can be very simple. The upfront cost of purchase and set up is fractional compared to the amount of money saved on shipping.

Logistics Planning Software – Is it Right For Your Company?

If your company has shipping needs and it doesn’t have its own shipping fleet, then you know how frustrating it can be to find shipping solutions that offer you everything that you need at the same time: timely delivery, low cost and dependability. For small to midsize companies that don’t have a large shipping budget, trying to find these three qualities on an ongoing basis can take more time than they seem worth, especially when companies don’t have logistics experts on their payroll. After a few months or less, companies in this position become tired of overpaying for shipping options that they don’t need and usually decide to invest in a transportation logistics solution.

Traditionally, realizing a logistics solution meant hiring a third party logistics (3PL) provider. But the trend of outsourcing logistics is gradually being reversed as companies begin to see the value of using logistics planning software to manage their shipping operations. Transportation logistics software offers several advantages over 3PL, including lower price, enhanced logistics expertise, more control over the shipping process and less shipping process disruption. But in order to find out if logistics planning software is right for your company, it helps to answer the following two questions:

Could you Benefit from Less than Truckload (LTL) Shipping?

LTL shipping is where two or more partial freight loads are combined into a full freight load, with the shipping cost being split between the shippers. If you don’t want to waste money shipping your partial loads as full loads and your shipments are large to make parcel shipping realistic, chances are that you could benefit from LTL shipping. The downside of LTL shipping is that, due to the increased number of stops to pick up and deliver shipments, shipments may take longer to arrive at their destination. But transportation logistics software can be used to determine an LTL arrangement that would deliver your shipment faster than other LTL arrangements.

Do you Want More Control Over Your Shipping Process?

This question might seem like a no-brainer, but there are companies that wish to wash their hands of the logistics situation and have a third party do the work. However, there are two things that these companies seldom realize: due to its customizable features and easy to use interface, logistics planning software doesn’t amount to “work”; and not using logistics software narrows shipping options. For example, if an LTL carrier finds it unfeasible to offer the level of “discount” that a 3PL provider desires (receiving a freight discount and then charging their customers a higher price is how 3PL companies make their money), then that carrier typically becomes off limits through a 3PL company, regardless of what benefits it might offer your shipping process. Taking control of your shipping process through logistics software amounts to more than a semantic notion of “control”; it means having more control over your company’s finances and more control over the companies that you ship with.

What is Logistics Software?

The Merriam-Webster Dictionary defines logistics as, “the handling of the details of an operation.” At the heart of the profitability and overall success of a business is an efficient logistics system. Managing production, parts, inventory, and shipments all fall under the responsibilities of the logistics, or supply chain, management department. Such a large job includes the daunting task of managing the many details associated with logistics. Employing the use of a good logistics company can greatly affect the outcome of the logistical branch of a business. However, hiring a company that specializes in logistics can prove to be very costly to carry out. Therefore, utilizing a logistics software program may be more economical for small to moderate facilities.

When a logistics company is used, it will handle the day to day management of the business. It will have its own trained personnel that can micro-manage every detail of the supply chain. For a large company with big operations, this is a necessity. Trusting such a vital factor to an untrained person could be detrimental to the business. Many manufacturing enterprises will also maintain a logistics manager as well. Large companies will recognize cost-saving benefits that will offset the expense of continued use of a logistics company.

Unlike a large manufacturer, even a small company can benefit from logistics software. Many software makes have designed an extremely easy to use, user-friendly interface. They are fully automated and can come as a suite with many optional applications or individually loaded for specific applications only. Add to the customizable features, that they often offer online and telephone tech support; this software pays for itself in very little time.

One thing that logistic software does is use a database to make and store various records necessary for keeping track of the many processes associated with a supply chain. The software can manage the distribution, warehousing, inventory, transportation details and expenses, and customer-friendly customer service options.

Some software makers also offer global visibility, bar-code scanning, billing administration and automated issue reporting to increase the value of the services that a business gives to their clients.

A business can track how many parts they have on hand and ordered, how much completed merchandise is available, current trucking routes and loads available, and log customer service interactions. Being able to input this information seamlessly and with as little effort as possible, every business that uses logistics software or a logistics company can save money. High inventory levels cost company’s money with the operating cost associated with warehouses. Being able to communicate with a client when a load will be available will increase customer satisfaction levels. And finally being able to log customer problems, a company can identify a trend before it becomes too overwhelming.

There are several services available to manage a company’s logistics department. Without selecting a method to manage a company’s logistical issues, it will loose money and potentially suffer from low customer and employee satisfaction. Using a software or company is very seldom optional. Therefore, the important thing is to find one that best suits the needs of one’s company, at a cost they can afford, and utilizing all its features to develop a business that is well run and sure to be successful.