Truckload Logistics Management: Perfect Your Business Shipping

Does your company seem to be spending way too much money when shipping freight? Finding the best methods and prices for every shipment can be almost impossible when done manually. There are so many factors that determine how the freight can be shipped and the overall cost. Larger businesses often have an entire department dedicated to this one task. Even with a dedicated team of shipping gurus, your business may be missing out on cost saving opportunities. Thankfully, there is additional help available for this very important part of your business. The cost and time savings associated with truckload logistics management has caused it to become a popular choice for many companies. Logistics consists of how goods flow from one destination to another. It is a process of making the best use of resources available between the two destinations and simplifying a procedure such as shipping. Software is used to streamline the shipping carrier selection and price bidding process to allow the most reasonably priced methods for business freight.

Truckload Logistics Management: Reduced Time and Workload for Employees

Shipping comes in two forms: truckload and less than truckload. Both of these methods offer many benefits and it can be difficult to know which option will work best for a particular freight load. Truckload shipping offers the advantage of an entire shipment being sent at one time without any intervention. Less than truckload shipping allows smaller shipments to be sent at a reduced cost to businesses. Among these two shipping option are an abundance of carriers to choose from. Depending on the distance, weight, and other factors, the prices can dramatically vary. Imagine the amount of time it takes your employees to determine this information and make a decision. The work is constant if the company has a lot of shipments going out daily or weekly. Other things must be monitored as well by the shipping department including invoices, departure dates, arrival dates, and much more. Truckload logistics management reduces these tasks and makes it possible for one employee to easily manage all company shipments. Instead of employees having to seek out the shipment carriers and deal with pricing, all options are available in one place. Shipments and costs can be monitored and adjusted accordingly. The result is the lower shipping costs, less work for employees, and free time to dedicate to other important business tasks.

Truckload Logistics Management: What Business Processes Are Made Easier?

Truckload logistics management helps with many shipping tasks. It assists in choosing the most effective shipping route for increased savings. Freight can be optimized by evaluating the shipment size, volume, and packaging composition. This reduces space used in the shipment and can either allow a company to ship more in a full truckload or better utilize less than truckload shipments. Once these factors have been evaluated, logistics management helps you choose the best carrier for the pre-determined freight optimization. Companies can purchase software or hire a third party. In the end, using software is much more cost efficient. Yearly shipping costs are considerably reduced with these programs. They also allow your business to have more control over shipping decisions.

TL Logistics Management Software – An Overview

If your company produces enough goods to take advantage of truckload (TL) shipping, which is defined by a company’s ability to ship enough products to fill a full semi trailer before the products are shipped, you have three options for determining the best TL shipping solutions: hiring an in house logistics expert; contracting with a third party logistics (3PL) provider; or using TL logistics management software, which is also known as full truckload logistics software. From a distance, each option has its advantages: hiring a logistic expert brings the peace of mind of having a logistic expert on site; contracting with 3PLs offers the advantage of placing the worry over shipping logistics in the hands of a separate entity; and implementing logistics software brings the advantage of cutting the middleman (3PL) out of the logistics process at a fraction of the cost of hiring a logistics expert. Using the software’s user-friendly interface, employees can select TL shipping arrangements without possessing logistics expertise.

TL logistics management software is offered on either a SaaS (software as a service) model or as an internal software solution. In either case, it is offered by software development companies whose management has direct experience in the freight shipping industry, and is designed to immediately sync with a company’s present shipping process. Easily modifiable in either form, the software does the work of a logistics expert, allowing companies to both save money on the logistics function and take control of their shipping process. Traditionally, companies that don’t employ logistic experts outsource shipping logistics to 3PL providers, of which there are four types: standard 3PL providers, which offer basic shipping services; service developers, which offer more advanced shipping services than standard 3PL providers; customer developers, which handle a company’s entire shipping process but don’t propose new shipping solutions; and customer adapters, which handle the entire shipping process and develop innovative shipping solutions.

In the event that a company desires a TL shipping solution alone, standard 3PL providers and service developers are usually the options of choice. However, when you learn how standard 3PL providers and service developers usually operate, implementing logistics software becomes the better choice. While standard 3PL providers and service developers can provide truckload shipping solutions, the arrangement is the 3PL’s best interest and not the customer’s. Instead pairing their customers with carriers that best meet their TL shipping needs in terms of route analysis, route optimization, and loading optimization, 3PL’s connect their customers with carriers that offer 3PL’s a discounted service rate that 3PL’s then charge their customers over and above in order to profit. With logistics software, a company’s range of shipping solutions isn’t compromised by a middleman’s financial interest. Instead, companies uncover the full range of available TL shipping options and choose form among them with software’s guidance.

Freight Management Software: Frequently Asked Questions

For most shippers, the management of freight transportation is a significant operating expense. To minimize the expense, many shippers implement a management resource that eliminates the need for a traditional logistics department. One such resource is logistics software, which allows companies to perform the logistics function using an online or in-house software program. If you are considering implementing logistics software, but you have questions about its functionality, effectiveness, and benefits compared to other logistical resources, the answers below can help:

Are there different types of logistics software?

Yes. Logistics software is a general name for applications that serves as logistical resources. For example, one application may pertain to supply chain management; another one may pertain to inventory control; and yet another one may pertain to both disciplines. The software is built around the unique needs of a shipper, not implemented as a one size fits all solution.

Must users of the product possess logistical expertise?

Users need not be logistics experts, as the application performs the calculations that an expert would perform. However, a proficient understanding of the shipping process is necessary to understand the functions and scope of the application.

What are the goals of implementing the product?

Different shippers have different logistical goals. There are three reasons why every shipper implements Transportation Management Software (a.k.a. TMS): to identify shipping arrangements that offer the best delivery time, the best freight care, and the best shipping rates.

How does using the product compare to using a freight broker?

The greatest difference between logistics software and freight brokerage is that the former allows shippers to make their own shipping arrangements, whereas the latter requires a freight broker to make the arrangements. For this reason, using a freight broker is typically the more expensive option.

If you need to manage the shipping process without the assistance of a traditional logistics department, logistics software is the ideal option. If you prefer to outsource shipping management, freight brokerage is the ideal option.

How much money can a shipper save by implementing the product?

The amount a shipper saves by using logistics software depends on three things: the cost of maintaining the logistical resource that is replaced, the quality of logistics the previous resource provided, and the particular cost factors of the shipping process.

After one year of using the software, most shippers reduce their shipping expense by at least 10 percent.

How long does it take to implement the product?

Transportation Management Software that is tailored to the unique needs of a shipper can be implemented 30-45 days from the first consultation.

Conclusion

For most shippers, freight transportation management is a major expense, but implementing a TMS product can reduce the expense by at least 10 percent after one year. If you need a comprehensive logistical resource that lets you manage the shipping process, but creating an in house logistics department is not feasible, implementing logistics software may be the answer. To learn more about its benefits, contact a provider of SaaS logistical solutions today.