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.

Vendor Compliance and Truckload Shipping: How Logistics Software Can Help

Is the cost of meeting the vendor compliance standards of large retailers and corporations worth the resulting sales? Perhaps not in the short-term, but in the long-term, complying with complex vendor standards is one of the few ways to turn mediocre product sales into phenomenal sales. Even so, small to midsized manufacturers that aim to meet the standards of large corporations and retailers cam immediately find what seem like insurmountable obstacles in their path, especially concerning standards that regard the shipping process, such as the requirement that companies ship full truckloads-as opposed to less than full truckloads-to a business’s receiving docks.

Vendor Compliance and Truckload Shipping: Can Shipping Logistics Help?

The problem with full truckload shipping-also known as TL shipping-for small to midsized vendors isn’t that they can’t ship less than a full truckload of their products in a full semi trailer; it’s that doing so is cost prohibitive. As a result, small to midsized companies typically turn to less than truckload shipping-also known LTL shipping-in which two or more shippers of partial loads combine their shipments to form a full truckload and split the cost. The general advantage of LTL shipping is its cost effectiveness, while its general disadvantage is its slower delivery time, resulting from numerous pick ups and drop offs.

But LTL can have a more specific drawback concerning vendor compliance and truckload shipping: it could throw a wrench in a business’s well-oiled receiving system, where a full truckload of products comes from a single source and is therefore brings less risk of error during the receiving process. Traditionally, only companies that produce enough goods to fill a full truckload on a regular basis use TL shipping. But today, transportation logistics allows shippers the option of shipping full loads on a schedule more suited to their production output, allowing participation with large buyers of goods.

Method of shipping is one of numerous concerns within a complex set of vendor compliance standards. But it remains one of the toughest standards to meet if you don’t have shipping logistics on your side, a service that companies can secure in one of three ways: by implementing their own logistic department; by contracting with third party logistics (3PL) providers; and by implementing logistics software, which allows you to become your own logistics provider without possessing logistical expertise. Out of the three options, the latter is the least expensive, while still supplying the broad, in-depth approach to logistics a company would receive if it had its own logistic department. To find out more about how logistics software can help your company meet the compliance standards of large corporations and retailers, contact an online provider of logistics software today.

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.