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.

Truckload Logistics Software – Shipping Advantages Gained By Companies

Companies that use full truckload shipping often believe that they already have the absolute best. Even with the best shipping method possible, there is always room for improvement. Truckload shipping provides two very noticeable benefits to companies. Products go to their destination on a direct route and do not have to be transferred or temporarily stored in a warehouse. The total shipping cost for these services includes the cost of logistics. A question that should be asked by every company is whether or not the logistics provider being used is truly working for their benefit. The common trend for this type of freight management is to either hire someone to handle the process internally or rely on a third party to perform the task. These options are sometimes too expensive for companies just beginning to take advantage of full truckload shipping. Truckload logistics software is a new alternative to these higher priced methods. It eliminates the additional cost of hiring for the task and lowers shipping costs.

Benefits Companies Receive By Using Truckload Logistics Software

Truckload logistics software is meant for companies that use full semi-trailers to ship freight regularly. The software presents multiple shipping solutions through an easy to use interface. Implementing this management tool allows companies to take charge of their own logistics decisions and become their own provider. Broader shipping options, integrated shipping results, and the elimination of third party services are all advantages received by using this type of software. Many studies have been performed to determine the impact of logistics on freight handling and have averagely shown a ten percent reduction in shipping costs for the first year of use. Third party providers often work with specific carriers and this limits the choices available to your company for each shipment. These limitations increase costs because more sensible options are ignored by the provider. By taking logistics over, you have endless possibilities for shipping solutions and are not limited to specific routes or carriers.

Truckload Logistics Software: How Shipping Costs Are Reduced

Companies all over the country pay out too much when they hire an internal expert or contract logistics to a third party. Experienced experts that work within the company can cost up to ninety grand a year. They may do very well at researching shipping options, but are not able to come up with or go over all the possibilities. Truckload logistics software can come up with every possible option in only a few minutes. Third party contracts also involve additional upfront costs that are avoidable and increase overall shipping costs for companies. While third party providers have been a common choice for companies that do not have their own logistics division, this software is beginning to take its place. Logistics applications provide better results for shipping decisions and eliminate all costs associated with third party contracts and company experts. Costs are also decreased by better freight optimization and shipping route choices. The applications are easy to use and can make shipping a synch for any company. Initial application costs are very minimal and the possible savings are phenomenal.

Transportation and Logistics Software – What Are Its Advantages?

If you are a small to midsize company that tries to ship your goods without the aid of transportation logistics, you’ll likely end paying significantly more for shipping than you would if your hired a third party logistics (3PL) provider or implemented online transportation and logistics software. Without the aid of freight logistics, the cost of the shipping process can prohibitive for small to midsize companies for two main reasons: they either pay full truckload FTL shipping (full truck load) rates to ship partial loads or, realizing the economic disadvantage of FTL shipping for partial loads, they use parcel shipping, which is also a disadvantage when shipping multiple parcels on a regular basis. In response to these situations, 3PL and transportation and logistics software can revolutionize a company’s sipping costs by providing them with options such as LTL shipping (less than truckload), integrated transportation methods based on competitive pricing and shorter shipping routes based on route analytics.

But while 3PL and logistics software function in the same capacity, the latter has two basic advantages over the former, beginning with price differential.

Price Differential

Although 3PL and logistics software companies serve the same purpose, they are principally different in their corporate make up. Third party logistics providers are freight logistics experts that act as middlemen between manufacturers and shipping companies, while logistics-software providers are freight logistics experts that specialize in creating freight logistics software, which they offer as an online software application for an affordable monthly fee. In other words, when you opt for 3PL, you end up paying more because you pay for an expert to manage your account, whereas logistics software lets you manage your own freight logistics through an easy to use interface. Essentially, 3PL providers make their money by charging you for a logistics service that you could easily perform on your own with the aid of logistics software. It’s as simple as that.

Level of Control

When you outsource a service that isn’t one of your company’s core competencies, you’re naturally at the mercy of the company that you outsource to. This is not to say to that 3PL providers are out to profit on their clients’ lack of logistics expertise in an ulterior way. But it does mean that 3PL providers are always looking for LTL shipping rates and other shipping options that offer the greatest price differential between what the options actually cost and what they charge their clients to secure those options. In some cases, the greatest price differential might result from shipping your goods with a company that doesn’t have the best reputation; a situation that you could easily avoid if you opt for logistics software. In addition to allowing more control over what companies you ship with, logistics software also allows each of your company departments to participate in the shipping decision process by accessing the software online, which can prove extremely valuable from an accounting and management perspective.

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